The Karachi stock market witnessed a bullish trading session on Wednesday as investors went for buying activity on expectations of withdrawal of capital gains tax (CGT) during the meeting of the Senate Standing Committee on Finance and the market’s officials.
The Karachi Stock Exchange (KSE) 100-share index gained 186.33 points or 2.01 percent to close at 9,436.88 points as compared to the previous session’s 9,250.55 points. The KSE 30-share index closed at 9,297.59 points with a rise of 193.34 points. The KMI 30 closed at 14,461.90 points with a surge of 277.42 points. The KSE 100 all-share index closed at 6,623.13 points with an increase of 130.73 points. The market turnover went up by 19.77 percent and traded 99.35 million shares as compared with the previous session’s 82.95 million shares. The overall market capitalisation was up by 1.99 percent and traded Rs 2.657 trillion as against Rs 2.605 trillion. Out 406 active companies, 284 increased, 100 decreased and 22 remained unchanged.
“Investors took positions in anticipation of the positive outcome from the meeting between KSE officials and Senate standing committee,” said TopLine Sec analyst Furqan Punjani. “Furthermore, after huge selling witnessed in Hubco on Tuesday, long-term investors took interest in the scrip due to attractive dividend yields.” “Approval of Rs 41 billion for Pakistan State Oil’s (PSO) financial relief on circular debt issue by the prime minister, rise in international oil prices near to $76 and recovery in global capital markets played a catalyst role in the positive activity,” said Shahzad Chamdia Sec senior analyst Ahsan Mehanti.
“Although excited low volume run-up led by PSO did allow the market to record an initial high, but sell-off on strength disallowed the momentum to sustain as an across the board offloading forced the market to go on back foot,” said Aziz Fida Husein and Co analyst Husnein Asghar Ali. “Efforts to keep positive numbers on board were on throughout the session.”
The KSE 100-share index opened in green zone with a gain of 41.51 points and at the end of the day closed at 9,436.88 points with a rise of 186.33 points. Lotte Pakistan was the volume leader with 17.65 million shares as it closed at Rs 8.96 after opening at Rs 8.8.61, gaining 35 paisas.
Source: The Daily Times