Led by various frontline stocks, mainly banking and fertiliser sector, the benchmark managed triple digit gains, while accumulation by local corporate and resident participants in the frontline stocks sparked short covering and allowed the stocks (floating in extremely over sold region) to witness recovery.
Various mid tier stocks mainly those having support of the respective groups joined the bull run, although various expensive front liners did witness off-loading on strength, the benchmark however stood strong for most part of the day. One popular rumor that was supposedly the driving force behind this recovery was anticipation of change in CGT implementation mechanism.
KSE 100 index closed at 11162.39 levels with the gain of 91.81 points, while KSE 30 index secured 130.90 points to close at 10676.89 levels. All Share index closed at 7753.23 levels after gaining 59.64 points. Total 144 scrips advanced 94 declined and 81 remain unchanged out of total 319 scrips traded.
Some factors including declining regional and international bourses, the recent downpour led flooding in provinces, fast depleting value of local currency and outstanding economic and financial woes compelled the local corporate participants to opt for consistent dividend yielding stocks.
Similarly energy shortfall, curtailment of dividend paying capacity due to circular debt, and high interest rate environment (although substantial rise in turnover as compared to previous sessions did allow various trading opportunities) led to the confidence remaining low due to reservations regarding low volumes and absence of follow-up support.
Hasnain Asghar Ali at Aziz Fidahusein said caution therefore continues to stay the call, while low volume and syndicated strength in high priced stocks continues to offer hedging opportunity for the equity specific funds. Positive news flow regarding change in CGT implementation mechanism stays the only selling point along with stable political and law and order situation he added.
