KARACHI: The Karachi Stock Exchange (KSE) 100-index witnessed quit dramatic week as at one time you were guessing that market is going to break all previous record but on second day you see it losing hundreds of its precious points. The market opened on positive sentiments on the first day of trading and gained 174.45 points in the week-long trading, as it opened at 31344.07 points on Monday and closed at 331518.52 points on Friday.
On Monday, Bulls bounced back strongly and kept their rule at the Karachi Stock Exchange (KSE) again as the benchmark KSE 100-Index surged a considerable 358.72 points or 1.14% to reach 31702.79 points and volume of 172,777,940 shares on first day of trading, Monday.
The market started the week in a fashion and picked up the thread from weekend closing of 31344.07 points, going up in a confident way. It continued upward march and kept on adding to the score tally, boosting confidence of the investors.
The bull-run seems to have committed to take the Karachi Stock Exchange (KSE) benchmark KSE 100-Index to highest-ever psychological barrier of 32,000 points and keeping its buoyancy in view, it seems not far off.
It is to be recalled that the market remained buoyant throughout the previous week and gained 400 points.
Experts and analysts attributed the bullish trend to various factors both on the economic and political spectrum.
It is to be noted that the previous peak of 30,474 points came in July, but the exchange plunged in August as opposition groups led by cricketer-turned-politician Imran Khan and firebrand cleric Tahirul Qadri began rallies and staged a sit-ins outside parliament to try to topple the government of Prime Minister Nawaz Sharif.
Tuesday made history as KSE managed to cross 32,000 points barrier and gained a substantial 303.61 points or 0.96% to close at 32006.40 points and volume of 212,121,500 shares on Tuesday. SBP rate cut of 50pbs gave an immense boost to the investors who made record buying.
Customs Today has another feather in its cap as this leading community newspaper was first one to predict on November 12 that KSE 100-Index would cross 32,000 points barrier very soon. Customs Today had also predicted Rs 14 cut in POL prices.
The KSE lost 250.11 points or -0.78% due to profit-taking to close 31756.29 points and volume of 187,615,200 shares on Wednesday.
Earlier, trading in the market started on a positive note and the index kept on ticking, adding 219 points to the overnight tally.
The stocks opened at overnight closing of 32,006.40 points and continued upward march, showing signs of confidence.
However, In its journey to scaling new heights of its history, the buoyant Karachi Stock Exchange benchmark 100-index tumbled a little till midday and lost most of early gains to come down to 32019.90 points after reaching 32225 points.
On Thursday, benchmark 100-index lost massive 517.25 points or -1.63 percent to reach 31239.04 points and volume of 180,057,570 shares as bears routed out bulls from the market.
In the wake of Pakistan Tehreek-i-Insaf (PTI) rally scheduled for November 30 in the federal capital, Interior Minister Chaudhry Nisar Ali Khan declared that the government would not create any hurdle in holding a ‘peaceful political gathering’.
He, however, added that the organisers will have to follow the procedure and get permission from the local administration about the site and other conditions.
Friday gives some confidence to investors at capital market of the country and it shrugged off the gloom of previous two days and set its pace for the upward march and gained 279.48 points or +0.89 percent to reach 31518.52 points and volume of 89,545,590 shares on last day of trading, Friday.
The Karachi Stock Exchange opened on a positive note and set off on the recourse to remedy the losses it had suffered over the past two day. The trading began at the overnight closing of 31239.04 points and the stock appeared positive, showing signs of recovery, although it is last day of the trading week. The market, after crossing all-time high of 32,000 points level, plummet over the past two days, leaving the investors high and dry.
On Friday, as a whole 42.69 per cent of companies witnessed increase in their shares while 12.64 per cent lost their share value and 2.13 per cent companies remained stable. High and Low were 31545.27 and 31239.04 respectively. Total volume traded in the market was 89,545,590 shares.
Pakistan Petroleum (plus 1 percent) and Pakistan Oilfields (plus 1.6 percent) were up on local institutional buying while investors largely ignored Thursday’s proposal of gas tariff hike.Fresh momentum buildup was seen in auto stocks that marched deep into greener pastures on account of attractive valuations on Friday. Pharmaceuticals were buzzing scoring steady gains ahead of the drug regulatory authority meeting next week.
The reason for the panic and bearish trend is attributed to a figure misquoted by a section of the print media which suggested that in a meeting with the State Bank on Wednesday, the Securities and Exchange Commission of Pakistan (SECP) mentioned “Rs13.4 billion as cash of the clients held by the suspended brokerage KASB Securities Limited (KSL)”. This sent shivers down the spines as the huge amount had the propensity to pull the entire market down to the pit. Efforts by brokers and other participants to assuage investors’ fears and calm the market proved futile.
The SECP played its proactive role as its Commissioner for Securities Market Division (SMD) Zafar Abdullah rushed in to hold meetings with the stakeholders.
Analysts say foreign fund managers showed exceptional interest in the market and it is expected that the bullish trend may retained at the bourse in the coming days. Selling in later half of the session pulled the index in red with Pakistan Petroleum (minus 2.2 percent), recording its recent low keeping other oil names under pressure