Equity market continues positive momentum

• The market traded in the green zone, as the rupee continued its upsurge against the dollar.
• The benchmark KSE-100 Index closed at 41,425.37 points, up 356.50 points, or 0.87 per cent.
• Analysts expect the market to continue momentum backed by economic clarity.

KARACHI: The positive momentum continued at the Pakistan equity market on Thursday, as the investors remained active throughout the day. The market traded in the green zone, as the rupee continued its upsurge against the dollar, analysts said.

An analyst at Pearl Securities said the KSE-100 Index sustained its positive momentum, amid sharp rupee recovery.

“Moreover, clarity on the International Monetary Fund (IMF) programme along with the reversal in the international oil prices to trade at $97.15/bbl, further boosted the investors’ confidence.”

The benchmark KSE-100 Index closed at 41,425.37 points, up 356.50 points, or 0.87 per cent. The main board activity remained active although hefty volumes were witnessed in the third tier stocks.

All share volume during the day remained relatively low to stand at 275 million shares, down 17 per cent as against 333 million shares traded on Wednesday.

The major volume leaders were World Telecom Limited (WTL) with 44 million shares and TPL Properties and Pak Elektron Limited (PAEL) with 12 million shares each.

Ahsan Mehanti at Arif Habib Corporation said the stocks continued the bullish trend in the earnings season on surging global equities, firm bond yields and a sharp rupee recovery, amid the State Bank of Pakistan (SBP) crackdown on the exchange firms.

“The reports of China rollover of debt and the IMF affirmations on the final conditions met for the release of the bailout funds played a catalytic role in the bullish activity.”

Mubashir Anis at JS Global Capital said that the market witnessed a bull run for the second consecutive day after clarity regarding the IMF programme and strengthening of the rupee against the dollar.

“The investors’ participation increased across-the-board. The market closed 356 points up at 41,425 level after touching a high of 41,630 points,” he added.

Going forward, analysts expect the market to continue its momentum backed by clarity on the economic front.

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