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Bull-run tosses 100-index to another high of 32,151.70pts as KSE eyes on 33,000pts

Bull-run tosses 100-index to another high of 32,151.70pts as KSE eyes on 33,000pts

KARACHI: The Karachi Stock Exchange benchmark KSE 100-index gained 60.77 points or 0.19 percent to reach 32151.70 points and volume of 194,562,640 shares on last day of trading, Friday.

The market opened on a positive at the overnight closing of 32090.93 points, and remained buoyant, going up in a steady manner. The sentiments appeared cheering and huge activities were witnessed at the market, although it is the last day of trading week.

The market is responding to certain positive developments including low inflation, which was followed by cut in interest rate, improved liquidity in market and the investors’ improved risk perception.

Market players asserted that even at the current high the market capitalisation to GDP ratio of KSE was 30 per cent, compared to 45pc in 2008 before the global market crisis.

Bull-run continued fuelling the Karachi Stock Exchange in its record-shattering journey as benchmark KSE-100 index rose to new all-time high of 32,273.55 points with gain of 182.82 points or 0.57 percent till midday.

As a whole 34.05 per cent of companies witnessed increase in their shares while 25.82 per cent lost their share value and 3.62 percent companies remained stable.

High and Low were 32315.56 and 32083.63 respectively. Total volume traded in the market was 194,562,640 shares.

The analysts and experts attribute the bullish trend to expectations for SBP discount rate cut, fall in rates NSS rates and easing political concerns after PTI altered dates for protests played a catalyst role in bullish activity at KSE.

Experts and analysts believed that low inflation, which had given rise to discount rate cut and possibility of further decline in inflation with further rate cut was the major market booster for investors’ visualised sharp growth in profitability of market across all sectors, particularly those with big loans on their balance sheets.

They, however, cautioned that the investors should not be carried away by the galloping rise in index for the valuations had turned ‘tough’.

Analysts and experts pointed out that positives on political front coupled with better than ever macro-economic indicators draw the index to another all-time high, adding that they anticipated a minor correction this week.