The Karachi Stock Exchange (KSE) started the week on a strong bullish note on Monday as the main index closed above 22,300 levels following positive statement by international financial rating agency Moody’s Investors Service about the new Pakistan-IMF bailout deal.
The benchmark KSE 100-Index surged by 0.84 percent or 187.38 points to close at 22,365.72 levels on Monday as against 22,178.34 levels recorded on Friday as investors poured in their money in Engro Corporation, Pakistan Telecommunication Company Limited, and Lafarge Pakistan Limited.
The KSE All Share Index gained 0.65 percent or 101.26 points to end at 15,785.44 levels on Monday as against 15,684.18 levels reported on Friday, the KSE 30-Index jumped by 0.95 percent or 162. 61 points to conclude at 17,306.67 levels on Monday as against 17, 144.06 levels posted in the previous trading session, whereas the KMI 30-Index was bolstered by 1.36 percent or 529.98 points to finish the opening trading session of the week at 39,488.61 levels on Monday when compared with 38,958.63 levels witnessed in the final trading session of the first week of Financial Year 2013-14.
The Karachi Stock Exchange stayed under bullish influence right from the start on Monday morning and the main index stormed past 22,300 levels during initial trade. After moving in a narrow range during the midway session, the main index regained the momentum and hit the highest level of the day of 22,397.52 levels before closing a shade lower.
The biggest trigger for the top Pakistani bourse was a positive statement by international financial rating agency Moody’s Investors Service which welcomed the bailout deal between government of Pakistan and the International Monetary Fund (IMF).
In its report‚ the rating agency says with the payment of $2.1 billion installment of loan by Pakistan through IMF will help reduce budget deficit.
It said the payment of installment will also help in reducing current deficit of the country.
The report expresses hope that the IMF board will approve the loan program with Pakistan.
According to Moody’s‚ Pakistan’s foreign exchange reserves on 21st of June stood at $6.3 billion and payment of $2.1 billion debt installment can increase pressure on its reserves.
The market volumes declined by 30.004 million shares to 325.649 million shares on Monday as against trading of 355.653 million shares recorded on Friday.
The market capitalization improved by Rs 34.826 billion ($355.373 million) to Rs 5.429 trillion rupees ($55.399 billion) on Monday when compared with the market capitalization worth Rs 5.394 trillion ($55.044 billion) witnessed the other day.
The KSE’s trading value swelled by Rs 1.733 billion ($17. 689 million) to Rs 10.679 billion rupees ($108.972 million) on Monday when compared with Friday’s trading value of Rs 8.945 billion ($91.283 million).
As per the figures released by the National Clearing Company of Pakistan Limited (NCCPL), the foreign investors came up with net selling of Rs 81.846 million ($0.835 million) on Friday and finished with total buying of Rs 700.494 million ($7. 147 million) in the first week of new financial year at the top Pakistani equity market.
In broader market, a total of 358 companies traded hands during Monday’s trading activities out of which prices of 203 issues ended higher, 129 closed down, whereas values of 26 other scrips stayed unchanged at previous week’s levels.
Lafarge Pakistan was the top traded company of the day with volumes of 31.958 million shares in its scrip, followed by Karachi Electric Supply Company and Bank of Punjab with turnovers of 31. 239 million shares and 25.786 million shares, respectively.
Wyeth Pakistan Limited was the top price gainer of the day with increment of Rs 86.25 rupees ($88.01 cents) per share to finish at Rs 1,811.25 ($18.48) while on the other hand Millat Tractors led the major losers of the day with decrement of Rs 6.45 (6.58 cents) a share to end at Rs 530.96 ($5.41).
