Stock market crosses 8,000 psychological barrier

KARACHI - KSE started business week with the celebration of rise in IMF financial support pledge and gained 210 points or 2.67 per cent to break the 8,000 psychological barrier. The KSE 100-index closed at 8,082 points.
Weekend news changed the dynamics of the Karachi stock market. Confirmation from IMF regarding the payment of second instalment, as well as new credit line approved by IMF changed the market sentiments.
Furthermore, confirmation of Baitullah Mehsud’s death has given some respite to US forces regarding the much controversial drown attacks. Somehow the security situation in the country has improved as per statement by governments’ representatives. Apart from that a much controversial figure Rehman dacoit was killed during clash with security forces in Karachi.
“These events may possibly improve law and order situation along with approval of IMF instalment can be termed as positive developments. Inflation number for the month of July can be termed as positive as core inflation along with CPI continued to fall, most probably as a result of base year effect”, expressed market expert Shahid Ali.
Ahsan Mehanti at Shehzad Chamdia Securities said that stability in rupee value, record result announcement of MCB Bank, MCB Bank acquisition of RBS and foreign interest in oil exploration scrips played a catalyst role in positive activity at the KSE.
Earlier, KSE 100-index opened in green zone, gaining 40.64 points and market crossed the 8,000 psychological mark in no time. Index closed the day at 8,082.06 points with a gain of 209.83 points on Monday.
Trading activity was very much improved as compared to the last trading session. The ready market volume stood at 185.769 million shares as compared to last trading session’s 141.140 million shares. Total trading value of the market inched up to Rs 10.814b from Rs 6.66b of last trading session.
Market capitalisation increased to Rs 2.381tr as compared to Rs 2.324tr of last session, showing a gain of Rs 57b. Out of 408 actively traded symbols at the KSE, as many as 232 gained value, at least 154 lost while the worth of the shares of 22 stocks remained unchanged.