KSE gains 183 points on Pak-US talks, circular debt resolution hopes

KARACHI - Hopes from the Pak-US strategic talks gave boost to the stock market and the KSE 100-index once again crossed the psychological barrier of 10,000 on Wednesday, gaining 182.92 points to close at 10146.27. The instruction to the Finance Ministry for releasing Rs42b to Pepco to resolve the issue of circular debt by early next month, did invite renewed buying interest at the KSE. On the other hand, the KSE 30-index closed at 10475.66 with a gain of 207.20 points. The KMI 30-index closed at 15260.99 with a gain of 247.68 points. All shares index closed at 7150.74 with a gain of 123.31 points. Ahsan Mehanti at Shehzad Chamdia Securities said, Investors remained bullish in intense foreign interest in oil & gas, banking and fertilizer sectors on strong valuations, and rising international oil prices, strengthening rupee value and expectation of early resolution of circular debt issue played a catalyst role in positive activity despite fears on rising inflation in the country. The news that had impact on trading activities at the market were: KSE key-men to meet Shaikh; CCP fines PSM Rs25m; SBP announces mark-up rate facility; and Amtex to offer remaining 18.3 million shares through IPO. Almost all the sectors main board stocks registered decent gains and whispers of foreign buying in selected stocks of the banking sector allowed the sectors to lead in gains, while LOTPTA stayed the volume leader, contributing almost 16pc to the total turnover. Hasnain Asghar Ali at Aziz Fida Husein said, In case the authorities fail to address the circular debt, with existing pressure on inflation that is likely to grow further, liquidity issues in the economic circuit, both the issues are likely to dominate the policy decision expected early next week, then the federal budget that is likely to carry various taxes of inflationary nature, along with the proposed CGT.\\ Trading activity was better as compared to the last trading session as the ready market volume stood at 160.302m as compared to last trading sessions 73.563m. Future market volume, however, stood at 9.094m shares as compared to 5.743m shares of last trading session. Market capitalization stood over Rs2.876tr, as total trades increased to 90,266 as compared to last trading sessions 57,363, while 239 companies advanced, 152 declined and 20 remained unchanged. Highest volumes were witnessed in LOTPTA at 24.681m closed at Rs11.02 with a gain of Rs0.74 followed by JSCL at 14.820m closed at Rs23.15 with a gain of Rs0.81, FFBL at 7.696m closed at Rs31.86 with a gain of 0.41.

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