KSE rises 143 points on end of political uncertainty, IMF tranche next month

KARACHI: The Karachi stock market witnessed intense buying activities on the last trading day of the week Friday due to support of end of political uncertainty in the country with Pakistan People’s Party and Pakistan Muslim League-Nawaz’s dialogue and expectations of receipt of $1.2 billion International Monetary Fund tranche next month.

The Karachi Stock Exchange (KSE) 100-share index surged by 142.93 points or 1.60 percent to close at 9,067.17 points as compared to the previous session’s 8,924.24 points. The KSE 30-share index closed at 9,562.33 points with a surge of 150.51 points. The KMI 30 index closed at 13,153.32 points with a rise of 170.19 points.

Analysts said bullish activity was witnessed in an oversold market as the index despite opening on a negative note closed the day by crossing the level of 9,000 points making a substantial gain in the process. The market turnover went down by 0.64 percent and traded 153.52 million shares as compared with the previous session’s 154.51 million shares. The overall market capitalisation went up 1.54 percent and traded Rs 2.583 trillion as against previous session’s Rs 2.579 trillion. Out of total 378 companies, 255 closed in the positive zone, 101 in negative and 22 remained unchanged.

“Confidence of the local stakeholders in the command of those in authority on the issues arising on law and order and political front was quite prominent, as the news of a couple of blasts early morning did initially have an impact mainly due to the fact that sensitivity level of the market has increased due to the low turnover and absence of tools of leverage,” said analyst at Aziz Fida Husein and Co Husnein Asghar Ali. “Initial dips, however, did invite accumulation mainly for day trades.”

Economic concerns prevailed despite positive statement by the IMF regarding improvement in various sectors of the economy, he said and added that activity of off-shore participants was awaited for the market’s direction, while cautious investors waited for further discounting in main board stocks to capitalise on double digit yields and low multiples.“Investors remained optimistic on renewed foreign interest, receipt of $1.8 billion from Friends of Democratic Pakistan next month and reduction of discount rate in the next monetary policy announcement at the end of the month,” said senior analyst at Shahzad Chamdia Sec Ahsan Mehanti.

The KSE 100-share index opened in the red zone with a loss of 6.96 points and at the end of the day closed at 9,067.17 points with a gain of 142.93 points. staff report

Source: http://www.dailytimes.com.pk/default.asp?page=2009\11\14\story_14-11-2009_pg5_18