KSE Breaks 13,000 historic record!

[Awesome]

http://www.dailytimes.com.pk/default.asp?page=2007\06\01\story_1-6-2007_pg5_13

KARACHI: The Karachi stock market Thursday witnessed massive buying in major stocks as investors hoped that the upcoming budget would definitely be in their favour.

Another reason was the attractive low levels of share prices on account of the previous two days selling, traders said.

The Karachi Stock Exchange (KSE) 100-shares index closed at an all time new high of 12,961.26 points on Thursday gaining 154.33 points. Banking and telecommunication sectors were major market players.

The index after two days of continuous bearish trend once again created history by closing at 12,961.26 points which was 154.33 points up compared to previous trading session of 12,806.93 points. The index touched highest level of 12,994.40 points and the lowest level of 12806.93 points during intra-day trade. The KSE-30 index closed at 16,277.49 with a gain of 315.70 points or 1.98 percent.

The market turnover went up to 32.99 percent to close at 409.42 million shares as compared to 307.85 million shares traded in the previous session. The market capitalisation moved up to 1.15 percent to close at Rs 3.781 trillion as compared to Rs 3.738 trillion traded in the previous session. Out of 405 companies, 220 closed in positive zone, 145 in negative while 40 remained unchanged.

Atif Malik, analyst at JS Securities said that after two days of subdued behavior, the market rebounded and regained its upward trend and came very close to 13,000 points psychological barrier. Major buying was witnessed in banking sectors followed by telecommunication and cement sectors. BoP remained in the limelight with 41 million shares.

Citing reasons of upward trend of the market, he termed it on the back of expectations by the investors that upcoming budget would be positive and investment friendly.

Senior analyst, at Shahzad Chamdia Securities, Ahsan Mehanti said that foreign investment in the banking sector blue chips on the back of higher spreads helped pushed the market up. Some other factors which helped market regain its upward approach includes retail investor and government institutions actively supporting the oil and cement sectors, sponsor based buying in PICIC and ABL, portfolio gains of scrips in cement, oil and banking sectors attracting investors and revising fundamental positively, record high PSDP allocation in coming budget and record export gathers interest in cement in addition to expectations of reduced taxes in banking sector.

Bank of Punjab was the volume leader in the share market with 40.88 million shares as it closed at Rs 118.80 after opening at Rs 113.25 gaining Rs 5.55. TRG Pakistan traded 34.59 million shares as it closed at Rs 12.902 after opening at Rs 12 gaining Rs 0.90.

Askari Bank traded 23.36 million shares as it closed at Rs 99 after opening at Rs 95.90 making a financial gain of Rs 3.10. DGK Cement traded 21.58 million shares as it closed at Rs 105.70 after opening at Rs 103 gaining Rs 2.70. The OGDC traded 20.05 million shares as it closed at Rs 122.45 after opening at Rs 121.50 gaining 0.95.

The future turnover moved up to 73.08 million shares compared to 45.19 million shares traded in the previous session. Twenty-four of the companies closed in positive zone, and six in negative.

Dealers said the previous two days offloading by some investors had attracted the attention of nearly all investors towards stocks promising good profits in near term.

Most of the major stocks were at upper circuit breakers while others remained a bit below those levels, they said.

Analysts have predicted that any uncertainty on the political or the economical front can have a major impact on the index, as these levels are the highest recorded in the history of stock market.

These levels are unpredictable, as the investors have never seen such high levels and any uncertainty can take major points out of the index.

Apparently the new budget is supposed to be the stuff of legend!

 

[Bull]

Never buy into this mkt now. Its looks like it has already factored in all the postive news that can come out the budget.

Most fo the fund managers are expectign amajor correction in Shanghai Ex, something more severe than this weeks and feb correction. That would have a knock on effect on almost all major exchanges around the world. So be a bit selective.

 

[Awesome]

Or by now till it keeps its upwards trend till the budget...

 

[Bull]

Or by now till it keeps its upwards trend till the budget...

Mkt lasts only till it finds a bigger fool.

 

[Awesome]

stock prices are low and there is a promise of them going up... So why not buy them now? The government's planning to put in $8.52bn into the development sector (which would be further aided by investors)...

I think if there's a continued investment in Karachi it could just trigger a very long upward trend for businesses in Karachi.

KSE has proven its worth IMO. People have been speculating this for 5-6 years and have been proven wrong on all occasions. Any major drop has been mostly due to corrections and KSE was seen bouncing back on all occasions. The stocks aren't going to plummet in a crash. The growth is not a bubble but very real.

 

[Bull]

stock prices are low and there is a promise of them going up... So why not buy them now? The government's planning to put in $8.52bn into the development sector (which would be further aided by investors)...

I think if there's a continued investment in Karachi it could just trigger a very long upward trend for businesses in Karachi.

KSE has proven its worth IMO. People have been speculating this for 5-6 years and have been proven wrong on all occasions. Any major drop has been mostly due to corrections and KSE was seen bouncing back on all occasions. The stocks aren't going to plummet in a crash. The growth is not a bubble but very real.

Its a myth that stock mkt crashes only when its a bubble. There are a lot of reasons one internal and other external. Im not aware of the valuations of the lsted stocks in KSE.

If the mkt has gone up already bcoz of the benefits the budget might bring in...which was would it move after the Govt announces those expected measures?

KSE had a major correction a yr or so back, and if it has rallied after that without facing much correction then its time to worry. Most fo the rally is tempted by funds, HNIs who accumulates index movers bringing these stocks into the limelight thru TV/Magazines/Brokers..which would make retailers zooming in..as more and more retailers start zooming in the big guys starts offloading it to the late entrants....and then it would be time for 'floppy drive orders'. This is the general way the mkt functions. Big players never keep open positons when there is a huge built up of retail positions / speculative positions.

Especially in commodity mkts, i personally follow the retail open interests in the mkt very closely and offloads as soon as we see it reaching a frenzied level.

All markets are spoiled by these retailer frenzy or speculative positions.

 

[PakistaniPatriot]

Salam everyone.
The stocks are rising and people are buying. FLASHBACK this is how the GREAT DEPRESSION took shape. Somebody needs to do something about this. HISTORY REPEATS ITSELF. If the prices suddenly go down which probably happen then thousands of people will go bankrupt. people who are in the power have to take action NOW OR THE THINGS WILL TAKE A TURN FOR THE WORST AND IT WILL ONLY BE IN PAKISTAN. ONE LOAF OF BREAD WILL BE LITERALLY RS. 150.
Lets all pray for the best in every aspect in the coming future.
PAKISTAN ZINDABAD.

 

[Neo]

Or by now till it keeps its upwards trend till the budget...

The statement from Aziz a day ago confirming that economy recorded 7.2% growth resulted in mass transactions, the trend will slow down next week or so.