Rate cut hopes inject 2.6pc in Karachi Stock Exchange (KSE)

KARACHI: Bulls remained dominant at Karachi Stock Exchange (KSE) at the start of the week gaining over 2.6 per cent to end above 9,300 levels on expectations of reduction in interest rates, favourable political situation which forces local funds and foreign investors to pour in their money mainly in oil and banking sectors.
The benchmark KSE 100-Index bolstered by 237.14 points or 2.62 per cent to end at 9,304.31 levels, KSE 30-Index increased by 259.22 points or 2.71 per cent to close at 9,821.55, whereas KSE All Share Index gained 157.49 points or 2.45 per cent to finish the day at 6,606.05 levels here.

Stability in political situation, rise in international oil prices, and expectation of reduction in discount rates in monetary policy announcement this month played a catalyst role in positive activity at the KSE, he added.

Foreigners were on the buying side as according to the figures released by the National Clearing Company of Pakistan Limited (NCCPL), there was a net foreign buying of $4.45 million Monday while local funds did a net buying of $6.2 million.
Bulls were there since the start of the day as market opened eyes with 2 points up into the green zone. Gains were then increased as buying continued mainly in index heavyweights of oil and banking sectors on expectations of reduction in interest rates while the attractive valuations too made them to go for shopping at the Exchange. Therefore market continued its upward movement and at about 1509 PST it touched an intraday high of 9,314 points (+ve 247 points) and finally closed just near its highest level.

Santosh Kumar, analyst at Darson Securities told TFD that the positive news flow from the International Monetary Fund (IMF) meeting and MSCI Barra maintained the country's status in the MSCI Frontier Market that restored investor confidence helping the equities to record bullish spell.

Investor participation was improved by 43 million shares as 196 million shares were traded during the course of the day as against a turnover of 153 million shares Friday.