RECORDER REPORT
KARACHI: Stocks opened the week on a bullish note as the IMF nodded in satisfaction to the release of $ 506 million tranche to Pakistan after the completion of its seventh review of the country’s economy under Extended Fund Facility (EFF).
The KSE-100 index gained 208 points to close at 34,093.55 compared to 33,885.13 of previous session last week. Moving both ways, the benchmark index hit the intraday high and low of 34,144.12 and 33,808.20.
Though lower than Friday’s 401 million, the trading turnover remained supportive at 294 million shares valuing Rs 8 billion. The number of scrips traded stood at 354, of which 225 moved up, 113 declined while 16 stayed unchanged.
The market capitalisation accumulated to Rs 7.357 trillion with offshore investors appearing as net sellers of $ 1.23 million portfolios.
Dewan Cement led the day’s volumes with a trading turnover of 30 million shares each priced on closing at Rs 13.83.
K-Electric followed the cement manufacturer with 26 million shares, Byco Petroleum 19 million, Japan Power 17 million, Jahangir Siddiqui Company 17 million, Pace Pakistan 14 million, Southern Electric 12 million, Pak Elektron 10 million, Dewan Motors 10 million and TPL Trakker 8.8 million.
Futures trade slid to 23 million contracts from 91 million of last session.
“Stocks closed bullish ahead of year-end close after the IMF release of $506m tranche amid satisfactory marking of 7th review of Extended Fund Facility,” viewed Ahsan Mehanti of Arif Habib Corp.
The day’s catalyst the analyst cited were higher banking spreads data for May’15, recent Moody’s upgrade on deposit ratings of five local banks and falling borrowing costs. The otherwise risk-averse investors, Mehanti observed, ignored textile millers’ decision to voluntarily shut their units down on energy issues.
“As the market shook off 1.9 percent last week, the bulls reappeared… with supporting volumes,” said Ahmed Saeed Khan of JS Research.
Although due to declining global oil prices the index’s heavyweight remained depressed but changed its outlook in the last half an hour as most major scrips ended in green. PSO, POL and NRL added 0.1, 1.1 and 1.3 percent to their value, respectively.
Bullish momentum is expected on the bourse throughout the week, going forward.
