The Karachi Stock Exchange (KSE) witnessed a bullish run in trading on Friday on the back of, what the analysts said, strong foreign and institutional interest in the energy and fertiliser related blue chip scrips. The last trading day of the week saw the benchmark, KSE 100-share index, closing 90.87 points higher at 12,057.54 against 11,966.67 points of the previous day. “Bullish activity was witnessed after strong foreign and institutional interest in the oil and fertiliser sector scrips on record earning announcements this week,” said Arif Habib Investments Director Ahsan Mehanti,. The index crossed the 12,000 mark to stand at 12,057.54 points after opening from the intraday low of 11,966.67 points.
At one point, the index hit the highest 12,134.74 points, the intraday high of course. Foreign investors’ interest and that of the institutions is believed to have pushed the usually thin volumes up at the bourse with Friday again seeing turnover at the ready-counter recorded at above 100 million to stand at 109.52 million shares, four million less than Thursday’s 113.499 million. The market capitalisation remained on the higher side and closed at Rs 3.207 trillion against Rs 3.185 trillion during the previous day. Silk Bank Limited was the volume leader of the day recording 8.731 million of its ordinary shares traded and clinching a 0.14-paisa per share gain.
The opening and closing rates for each of the Bank’s shares stood, respectively, at Rs 2.85 and Rs 2.71. The futures market witnessed a sluggish trend and saw a decline of two million shares in the total turnover that for the day stood at 8.33 million against 10 million of Thursday. Commenting on the day’s trading, Ahsan Mehanti of Arif Habib Investments said the investors remained bullish in scrips across the board on higher global commodity prices on Friday. He was of the opinion that other factors acted as a catalyst for the KSE included a bullish trend at the global stock exchanges, the US brent crude over $ 127 and hope of the early release of the next tranche by the International Monetary Fund (IMF) for Pakistan’s economic support.
These factors, he said, ‘played a catalyst role in positive close at KSE.’ He added that this was “despite concerns of rising circular debts and energy shortage in the country affecting industrial output.”
