Karachi stocks gain 48 points due to buying in blue chips

KARACHI: The Karachi stock market observed a firm trading session on Tuesday on account of institutional buying in oil, insurance and banking sectors.

The Karachi Stock Exchange (KSE) 100-share index gained 47.82 points or 0.50 percent to close at 9,546.39 points as compared to the previous session’s 9,498.56 points. The KSE 30-share index closed at 9,974.84 points with a gain of 50.46 points. The KMI 30 closed at 14,264.41 points with a rise of 81.55 points. Analysts said the market opened in the green zone and the trend remained dominant throughout the trading session during which dull volumes were traded. One of the major factors, which spurred positive sentiment was renewed foreign interest.

The market turnover went up by 9.06 percent and traded 109.28 million shares as compared with the previous session’s 100.20 million shares. The overall market capitalisation was up by 0.44 percent and traded Rs 2.737 trillion as against Rs 2.725 trillion of the previous session. Out of total 383 companies, 161 closed in the positive zone, 205 in negative and 17 remained unchanged.

“After a sharp fall in the previous session, the market posted a meagre increase amid dull volumes as clarification regarding earlier rumours of corporate default improved the sentiments,” said TopLine Sec analyst Farhan Seth. “However, activity remained confined to oil scrips and commercial banks.” “Rise in global commodity prices and positive expectations from the upcoming result announcements played a catalyst role in the positive activity,” said Shahzad Chamdia Sec senior analyst Ahsan Mehanti.

“Second-tier stocks kept the sentiments negative in the opening hour, but interest in blue chips after early set back took the market into the green zone,” said Aziz Fida Husein and Co analyst Husnein Asghar Ali. “Massive fluctuations in stocks that witnessed panic selling in the previous session due to various rumours regarding financial constraints helped the market to recover.” Banking and oil and gas exploration stocks supported the market in attaining the intra-day high, while second-tier stocks and the stocks that have been in the grip of various rumours contributed substantially to the turnover. staff report