Market watch: Stock market bounces back on fresh bailout
Benchmark KSE-100 index rises 575.63 points
The banking sector led the bounce back on anticipation that interest rates will go up soon under strict stipulations of the IMF. PHOTO: AFP/FILE
KARACHI:
The stock market bounced back on Thursday on news of the International Monetary Fund (IMF) bailout, breaking free from a two-week bearish run. Despite a lower than expected bailout package, the IMF approval clears months of ambiguity and allowed investors to gauge the tough steps the IMF has in mind for the government.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 2.63% or 575.63 points to end at 22,451.46 points.
“Pakistan equities staged an impressive comeback on Thursday as investors bought on hopes that the recent correction was overdone while IMF approved a $6.6bn loan to stabilise the economy and boost reserves,” said Faisal Bilwani of Elixir Securities. “Cements stocks were the prime catalyst as reports of possible settlement amongst large players to keep marketing arrangement intact pushed most cement names from lower to upper price limits.”
“The market staged a strong reversal on the back of IMF agreeing to provide Pakistan a $6.6 billion loan. The banking sector led the bounce back on anticipation that interest rates will go up soon under strict stipulations of the IMF. The Energy and Petroleum sector was the second largest contributor to the index,” said Adeel Jafri of JS Global.
However he added, “The market needed to correct oversold momentum though it is early to say with certainty that a reversal of the broader bearish trend has finally taken place.”
Trade volumes spiked to 218 million shares compared with Wednesday’s tally of 149 million shares.
The value of shares traded during the day was Rs8.4 billion.
Fauji Cement was the volume leader with 27.5 million shares gaining Rs0.74 to finish at Rs13.32. It was followed by Maple Leaf Cement with 22.5 million shares gaining Rs1.05 to close at Rs22.1 and Bank of Punjab with 17.8 million shares gaining Rs0.59 to close at Rs12.53.
Foreign institutional investors were net sellers of Rs108 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, September 6th, 2013.
The stock market bounced back on Thursday on news of the International Monetary Fund (IMF) bailout, breaking free from a two-week bearish run. Despite a lower than expected bailout package, the IMF approval clears months of ambiguity and allowed investors to gauge the tough steps the IMF has in mind for the government.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 2.63% or 575.63 points to end at 22,451.46 points.
“Pakistan equities staged an impressive comeback on Thursday as investors bought on hopes that the recent correction was overdone while IMF approved a $6.6bn loan to stabilise the economy and boost reserves,” said Faisal Bilwani of Elixir Securities. “Cements stocks were the prime catalyst as reports of possible settlement amongst large players to keep marketing arrangement intact pushed most cement names from lower to upper price limits.”
“The market staged a strong reversal on the back of IMF agreeing to provide Pakistan a $6.6 billion loan. The banking sector led the bounce back on anticipation that interest rates will go up soon under strict stipulations of the IMF. The Energy and Petroleum sector was the second largest contributor to the index,” said Adeel Jafri of JS Global.
However he added, “The market needed to correct oversold momentum though it is early to say with certainty that a reversal of the broader bearish trend has finally taken place.”
Trade volumes spiked to 218 million shares compared with Wednesday’s tally of 149 million shares.
The value of shares traded during the day was Rs8.4 billion.
Fauji Cement was the volume leader with 27.5 million shares gaining Rs0.74 to finish at Rs13.32. It was followed by Maple Leaf Cement with 22.5 million shares gaining Rs1.05 to close at Rs22.1 and Bank of Punjab with 17.8 million shares gaining Rs0.59 to close at Rs12.53.
Foreign institutional investors were net sellers of Rs108 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, September 6th, 2013.