RECORDER REPORT

KARACHI: Equities showed strong recovery on the last trading day of the week Friday after PAT, PTI accepted the Army as mediator and announced that they will resume dialogues with the government.

The benchmark KSE-100 index, after 6 years, posted a record increase of 793 points to close at 28,568 points Friday compared to 27,774 points Thursday.

For the first time in the history of KSE, the benchmark 100-index gained over 1,060 points mark in the intraday trading, however it settled with 2.86 percent recovery.

During the intraday trading, the market fluctuated in the green zone and the index touched 28,837 points highest level. Supported by a positive trend, volume at the ready counter surged to 188 million shares compared to 115 million shares in previous session.

Ahsan Mehanti, an analyst at Arif Habib said the Karachi share market witnessed a strong recovery after positive reports that PAT, PTI have accepted the Army role as mediators, guarantors to end political crisis in the country.

“Strong earning announcements, Privatization Commission decision on $850 million OGDC GDR in the midst of political crises, receipt of $371 million of Coalition Support Fund tranche and the expected ease in the circular debt on tariff rationalisation measures for release of $550 million IMF tranche next month played a catalytic role in the bullish activity,” he added. He said the market is likely to further improve in coming days, if crisis will be resolve in next two days.

Market capitalisation increased by Rs 174 billion to Rs 6.727 trillion against previous Rs 6.553 trillion a day earlier. Trading took place in 366 companies, of which 289 closed in green zone, 54 in red, while 23 remained unchanged.

Samar Iqbal, an analyst at Topline, said for the first time in KSE history the benchmark KSE-100 index crossed 1,000 points mark in the intraday trading on positive report regarding start of negotiations between protesting parties and government.

Across-the-board rally was seen in all major scrips and on closing basis, the market rallied 793 points after a gap of 6 years on expectations that the Army Chief may help resolve ongoing political crisis, she added.

Volumes improved to 188 million shares and the value also rose to $98 million or value Rs 9.8 billion, she maintained.

Among top 10 volume leaders, all recorded a positive trend. K-Electric Ltd emerged volume leader with 22.5 million shares, gaining Re 1 to close at Rs 7.71. B.O.Punjab stood second, up Re 0.15 to Rs 8.06 on 14.5 million shares. Lafarge Pak ranked third to close at Rs 15.48, up Re 0.38, on 10.8 million shares.

Pak Elektron Ltd also gained Re 0.63 to Rs 29.39 on 8.8 million shares. With a trading volume of 7.5 million shares, Maple Leaf Cement moved up by Rs 1.14 to close at Rs 26.61. TRG Pak Ltd increased by Re 0.34 to close at Rs 10.56 on 6.3 million shares while Fauji Cement closed at Rs 18.78, up Re 0.55 on 5.9 million shares.

With a trading volume of 5.2 million shares, Faysal Bank closed at Rs 15.03, up Re 0.52. Pak Petroleum increased by Rs 2.93 to Rs 222.67 on 4.7 million shares. Jah. Sidd. Co also recorded a positive trend and surged by Re 0.34 to Rs 8.27 on 4.5 million shares. Rafhan Maize and Bata (Pak) were the top gainers with Rs 274.00 and Rs 127.00 to close at Rs 10,775.00 and Rs 3,315.00, respectively. Exide (Pak) and Sanofi-Aventis were the top losers with Rs 46.38 and Rs 34.67 to close at Rs 892.45 and Rs 658.62, respectively.