Kse 100-share Index Crosses 9,000 Pts

[EagleEyes]

KSE 100-share index crosses 9,000 pts mark, but ends lower

KARACHI: The Karachi stock market made gains on Monday, as investors’ confidence was boosted by the enhancement in the exposure limit for banks and DFIs in equities granted by the State Bank of Pakistan, said analysts.

The KSE-100 Index moved up by 37.03 points, or 0.42 percent, to close at 8,900.90 points compared to 8,863.87 points in the previous session. Tanvir Abid, head of research at Live Securities, said the market opened on an extremely upbeat note on the back of enhancement in banks’ exposure limit in the equity market.

At the onset the KSE-100 index made 9,004 points intra-day high. Stocks, which made gains, were led by National Bank, MCB, Oil and Gas Development Company, Pakistan Oilfields, Pakistan Petroleum and Lucky Cement.

Nonetheless, huge profit-taking was witnessed at these levels and the index took a nosedive of 141 points to 8,864 points.

Pakistan Telecommunication Company and Pakistan State Oil were particularly battered. PTCL remained depressed due to absence of any development with regard to its takeover by Etisalat while PSO was bearish because of rumours of less attractive quarterly earnings.

Banking plays, NBP and MCB rose, but ended the day below their intra-day highs. On the other hand, Bank of Punjab closed limit up. In cements, Lucky closed at its upper circuit level while DG Khan declined.

Investors are expected to keep a cautious stance in view of the forthcoming results season, which normally results in profit-taking and the large build-up of leverage in the futures market, said the analyst. During the session 340 stocks were traded, value of 160 improved while 136 declined.

Share value of 44 companies remained unchanged.

Trading volume increased by 12.6 percent to 300.3 million shares compared to 343.89 million shares traded during the previous session. Market capitalisation moved up by 0.4 percent to Rs 2.538 trillion as against total capitalisation of Rs 2.526 trillion at the end of previous trading session.

Pakistan Telecommunication Company Limited (PTCL) was at the volume leader’s position with trading volume of 74.63 million shares. Its share value surged by Rs 1.85 to close at Rs 124.80 from Rs 122.95. National Bank of Pakistan (NBP) was second with trade of 18.37 million shares.

Its stock price increased by Rs 2.45 from the previous level of Rs 165.55 to close at Rs 168.00. MCB Bank Limited (MCB) was third with trading volume of 24.9 million shares. The stock value moved up by 95 paisas to close at Rs 151.60 compared to the opening at Rs 150.65. Stock price of Pakistan Oilfields Limited increased by Rs 13.00 from opening at Rs 415.00 to close at Rs 428.00. Its 21.69 million shares were traded.

Share value of Bank of Punjab (BoP) rose by Rs 5.50 to close at Rs 115.75 from Rs 110.25 with trading volume of 14.49 million shares. Share price of Lucky Cement increased by Rs 3.15 to close at Rs 67.05 compared to the opening level of Rs 63.90. Its 14.15 million shares were traded during the session.

In prominent stocks Wyeth Pak recorded the highest appreciation, as its share value gained Rs 20.00 to close at Rs 1,295.00. The biggest loser of the session was Nestle Pakistan, which declined by Rs 21.00 to close at Rs 536.00.

At the futures counter OGDCL-October was the volume leader with 27.6 million contracts changing hands. Its price moved up by Rs 1.85 to close at Rs 124.80 from the opening rate of Rs 122.95. On second position was PTCL-October with volume of 18.37 million contracts. Its price declined by Rs 1.35 to close at Rs 67.25 from Rs 68.60. staff report

 

[EagleEyes]

KSE is great! Past months it was decreased from 12000 to 7000 now it is going back to where it was. I hope the decrease that happened dont happen again.

We really need to think about inflation in our country. Not to mention i m sure it has increased due to Earth Quake.

 

[Owais]

these facts shows that how well our economy is going! :W00T:

 

[EagleEyes]

Ya, the economy recovers very quickly. The disaster didn't really trouble the economy, but damaged the cities which will cause inflation, and we are going to bought inflation down, the prices will rise up, things will get better, but economy will get slow meaning will not go as much fast as it is going right now.

 

[sigatoka]

While its great that the stock market is doing great; people shouldnt get hung up on it. Germany's stock market is doing great even though its economy is not. This is because Companies in Germany have brutally cut working conditions and wrung out productivity growth to boost profits. The stock market is strongly correlated with company profits. When company profits are doing well so is the stock market. Usually when comp. profits are doing well, so is the economy. Not in Germany because the increase in job insecurity that the sackings that the companies have undertaken to boost profits and the stock market have also depressed local consumer demand.

That is, people are feeling less secure about their jobs. Less secure that they will get higher incomes in future coz most have taken pay cuts AND are working longer hours. This decrease in security, reduction in current pay and expections of low income growth have led consumers to defer purchases and reduce consumption overall. This has slowed economic growht.