Pakistan's KSE gains over 100 points
- Source: Xinhua
- [18:23 September 02 2009]
- Comments
Stocks at Pakistan's Karachi Stock Exchange (KSE) witnessed fourth bullish session on the trot here Wednesday as foreign investors kept up their trust to help the main index rest well over 8,800 levels.
Despite of a profit-taking act towards the mid-day, bulls showed their strength at a market where foreign interest has developed considerably during the course of this year. Especially previous two trading sessions have seen foreign investment worth 45.285 million U.S. dollars at the Exchange.
Only on Tuesday, offshore investors invested 21.3 million dollars (gross buying of 24.9 million and gross selling of 3.6 million). While on Monday, total investment made by the foreign players dramatically inched up to 23.99 million dollars (gross buying of 26.5 million and gross selling of 2.5 million).
Market analysts have been expecting the main index to breach psychological barrier of 9,000 levels during the course of the current week and market almost did that Tuesday when it touched the year-high level, just below the 9,000-level on the back of continuous foreign interest in the country's premier bourse.
The benchmark KSE 100-Index finished the day with 109.40 points surge at 8,878.64 levels, KSE 30-Index bolstered by 107.80 points to close at 9553.10 levels, whereas KSE All Share Index increased by 73.99 points to end at 6,288.00 levels here.
The market started off the day brightly yet again as investors remained positive and went on with the buying spree of the previous three trading sessions that helped the main index to travel way into the green zone, but then a selling pressure hit the Exchange as local institutions and small investors opted for taking an exit and the main index trimmed most of the early gains.
However, during the second part of the trading session, bulls got them reunited on the back of foreign investment and boosted the key index beyond 8,900 levels where at one stage, it hit the intraday highest level of 8,939.75, but profit-taking at higher levels towards the end dragged it down to close below 8,900 levels.
Market analysts told Xinhua that despite of the fact that local investors are not feeling the pressure to take long-term position in the market, foreign investors are showing keen interest as the quantum of foreign investment is growing by every day. They viewed that as Standard and Poor's and Moody's Investors Service upgraded Pakistan's sovereign rating from negative to stable, foreign investors started to take fresh positions here as KSE has been seen by the foreign experts as the cheapest market in the region and with strong fundamentals the main index could go on to cross 10,000 psychological level before the year-end.
Although, market gained big numbers again, but volume figures failed to correspond the performance as they contracted by 47.44 million shares to 255.391 million shares Wednesday as against Tuesday's trading number of 302.831 million shares.
Bulls outnumbered bears on the main board as out of total 379 active issues, value of 200 stocks surged, 160 plunged, whereas price of remaining 19 scrips remained unchanged.
Bank Al-Falah was the volume leader of the day with a turnover of 32.071 million shares, followed by Oil and Gas Development Company Limited and Pakistan PTA Limited with 20.488 million and 20.071 million shares respectively.
Bata Pakistan Limited was the top price gainer of the day as its price soared by 15.00 rupees to end at 900, while on the other hand, Nestle Pakistan topped the major losers' list with 48.50 rupee decline in its share price to close at 1,051.50 rupees.
Market participants are of the view that the market would go onto hit 12,000 levels if authorities decide to launch leverage products at the earliest. (1 US dollar equals 82 rupees)
