Post initial setback that pushed the benchmark in red zone mainly due to renewed blames by US authorities and proposed cut in aid to Pakistan, robust activity in fertiliser and banking stocks allowed the benchmark to re enter positive zone, while thorough consolidation besides inviting short term snap rallies infused confidence amongst the sideliners, thus inviting wider support.
KSE 100 index closed at 11625.69 levels with the gain of 94.45 points, while KSE 30 index gained 102.98 points to close at 1139.45 levels. All Share index closed at 8062.38 levels after gaining 63.24 points. Total 154 scrips advanced 106 declined and 99 remain unchanged out of total 359 scrips traded.
While the equity market participants continue to bet on healthy corporate results, triple digit decline in local interest rate and likely settlement of circular debt, ugly economic and financial situation coupled with cold ties with the US, continue to restrict the resident participants, both from corporate and retail circuits from making aggressive bets. Declining volume with increasing values has been quite prominent in previous rallies and has seemingly become a trend, thus keeping the chances of stagnation led sell-off on the higher side.
“Likely exit from the IMF regime, that might have a negative fall-out on the dollar reserves along with decline in confidence level among various other international financial institutions, the influenced CGT implementation and tight monetary policy will indeed witness lenient stance,” said Hasnain Asghar Ali at Aziz Fidahusein. “Relaxation in CGT implementation mechanism will allow the local bourse to test its potential besides providing decent revenue flows to FBR and easing up of monetary stance will jump start the economic engine,” he added.
KSE bulls persist in the face of adversity
