KSE index rises on IMF’s lower inflation projection
December 12, 2013
The Karachi Stock Exchange rallied on Wednesday to cross the psychological 25,000 points barrier in intraday trade, following the International Monetary Fund’s projection that inflation will be 7.09 percent in the current fiscal year.
“A swamp of positive news flooded the market,” Fahad Ali at JS Global Capital said.
“One of the encouraging news was that the International Monetary Fund has projected Pakistan’s inflation to be at 7.09 percent in FY14,” he said.
The KSE-100 index gained 94.22 points, or 0.38 percent, to end the session at 24,972.90 points.
The KSE-30 index gained 71.25 points, or 0.38 percent, to close at 18,711.04 points.
The ready market turnover surged to 179.832 million shares as compared to 177.532 million a day ago.
Of 365 active scrips, 234 advanced, 104 declined, while shares of 27 companies remained unchanged.
Ali said that remittances also rose by seven percent to $6.4 billion in the first five months of the fiscal year, while federal Finance Minister Ishaq Dar’s statement that the government is targeting $20 billion reserves next year lifted the market sentiment.
Interest was seen across-the-board, primarily in textiles, oil and gas, banking and cement sectors.
Textiles rallied as the GSP Plus case is to be presented before the European Union Parliament, while cement companies rose on the back of news of increase in per bag cement prices.
“We believe that the market is in the consolidation phase and going further, the market will continue to perform well,” Ali added.
Zafar Moti, a former director of the Karachi Stock Exchange, said that the market is in consolidation phase and is likely to remain stagnant at these levels for some time.
However, the benchmark index is expected to touch 26,000 points level by the end of the year.
Asad Siddiqui at Topline Securities said the market once again surpassed the psychological level of 25,000 in the intraday session; however, it remained unsuccessful in sustaining that level.
Participation at the bourse remained on the lower side with daily average volumes declined by nine percent to Rs7.2 billion in rupee terms.
Cement sector remained in the limelight on the back of potential price increase in the upcoming month.
Moreover, investors’ interest was witnessed in the Bank Islami Pakistan and the National Bank of Pakistan on the back of improving margins of the banking sector.
Bank Islami led the volumes with the trades of 18.226 million shares, as the scrip gained 64 paisas to close at Rs7.37 per share; followed by the National Bank of Pakistan with 13.100 million shares, as it gained Rs1.36 to end at Rs56.91.
DG Khan Cement with the trades of 9.889 million shares gained 77 paisas to finish at Rs78.77 per share.
“A swamp of positive news flooded the market,” Fahad Ali at JS Global Capital said.
“One of the encouraging news was that the International Monetary Fund has projected Pakistan’s inflation to be at 7.09 percent in FY14,” he said.
The KSE-100 index gained 94.22 points, or 0.38 percent, to end the session at 24,972.90 points.
The KSE-30 index gained 71.25 points, or 0.38 percent, to close at 18,711.04 points.
The ready market turnover surged to 179.832 million shares as compared to 177.532 million a day ago.
Of 365 active scrips, 234 advanced, 104 declined, while shares of 27 companies remained unchanged.
Ali said that remittances also rose by seven percent to $6.4 billion in the first five months of the fiscal year, while federal Finance Minister Ishaq Dar’s statement that the government is targeting $20 billion reserves next year lifted the market sentiment.
Interest was seen across-the-board, primarily in textiles, oil and gas, banking and cement sectors.
Textiles rallied as the GSP Plus case is to be presented before the European Union Parliament, while cement companies rose on the back of news of increase in per bag cement prices.
“We believe that the market is in the consolidation phase and going further, the market will continue to perform well,” Ali added.
Zafar Moti, a former director of the Karachi Stock Exchange, said that the market is in consolidation phase and is likely to remain stagnant at these levels for some time.
However, the benchmark index is expected to touch 26,000 points level by the end of the year.
Asad Siddiqui at Topline Securities said the market once again surpassed the psychological level of 25,000 in the intraday session; however, it remained unsuccessful in sustaining that level.
Participation at the bourse remained on the lower side with daily average volumes declined by nine percent to Rs7.2 billion in rupee terms.
Cement sector remained in the limelight on the back of potential price increase in the upcoming month.
Moreover, investors’ interest was witnessed in the Bank Islami Pakistan and the National Bank of Pakistan on the back of improving margins of the banking sector.
Bank Islami led the volumes with the trades of 18.226 million shares, as the scrip gained 64 paisas to close at Rs7.37 per share; followed by the National Bank of Pakistan with 13.100 million shares, as it gained Rs1.36 to end at Rs56.91.
DG Khan Cement with the trades of 9.889 million shares gained 77 paisas to finish at Rs78.77 per share.
