KSE gains 97 points on 'good news' hopes

KARACHI - The stock market witnessed bullish activity on Wednesday ahead of a meeting between the Prime Minister and the Supreme Court Chief Justice, with the market participants awaiting to hear 'good news from the PM.
The stocks ended one per cent higher led by the energy sector following a rise in international oil prices.
The Karachi Stock Exchange (KSE) benchmark 100-share index, which opened in the green zone with a gain of 112.46 points, ended one percent, or 97.41 points, higher at 9,876.09 on turnover of 148.13 million shares. OGDCL, the heaviest weighted listed company, ended 2.21 percent higher at 120.60 rupees.
It is pertinent to note that with the start of recent judicial crisis, prudent investors tried to find their way out of the stock market, but expectation of resolution provided hope to overcome investors fears and started off the bullish momentum again.
On the other hand, the KSE 30-index closed at 10246.08 with a gain of 128.22 points. The KMI 30-index closed at 14532.86 with a gain of 162.62 points. All shares index closed at 6997.49 with a gain of 64.96 points.
Trading activity was better as compared to the last trading session as the ready market volume stood at 201.222m as compared to last trading sessions 120.588m. Future market volume, however, stood at 2.705m shares as compared to 1.442m shares of last trading session.
Market capitalization stood over Rs2.839tr, as total trades increased to 99,522 as compared to last trading sessions 77,456, while 235 companies advanced, 158 declined and 25 remained unchanged.
Highest volumes were witnessed in WTL at 29.292m closed at Rs5.25 with a gain of Re0.80 followed by LOTPTA at 13.993m closed at Rs10.70 with a gain of Re0.17, OGDC at 8.721m closed at Rs120.60 with a gain of 2.61.
Ahsan Mehanti at Shehzad Chamdia said, Strong result announcement by Pakistan State Oil, rise in international oil prices, rise in global equity markets, continued foreign interest played a catalyst role in positive activity in the result announcement session.
Some news that affected the trading activities were: IMF ups budget deficit to 5.1pc; Government releases Rs3.6 billion to cash-strapped PSO; mutual funds fall 7.7pc MoM in Jan; and exploration rights to eight companies granted.
Moreover, the IMF review states, 'The early signs of recovery in some sectors and the improved external position are encouraging, although there are risks and challenges to Pakistans economic program. Economic growth in Pakistan is starting to recover. However, the growth outlook is subject to risks: most prominently the domestic security situation and reliability of electricity supply, as well as the pace of global economic recovery. Further, the widening of military operations, revenue shortfalls and delays in disbursements of pledged donor support have complicated fiscal management, and inflation has picked up. The trend of right issue announcement by a local group to raise funds for expansion and further acquisition have seemingly disappointed the participants as reflected by losing value of the stocks, a pre-active approach might force the sell-off in other stocks of the group that is yet to come up with quarterly announcements, and therefore reducing the options mainly for short term traders.
Hasnain Asghar Ali, at Aziz Fidahusein, said, 'With issues on economy, inflation, upcoming federal budget and various other issues still offering resistance, excitement prone decisions should be avoided, short term trades on technical calls may however be attended.