KSE rebounds, gains 106 points on T-Bill yields reduction

KARACHI - After two successive days decline, the Karachi stock market on Thursday witnessed bullish activity as the benchmark KSE 100-index gained 106 points to close at 9,251 points.
The KSE 100-index opened in green zone with a gain of 47.95 points and at the end of the day closed at 9251.19 with a gain of 106.43 points. The junior partner KSE 30-index closed at 9774.87 with a gain of 130.34 points. KMI 30-index closed at 13505.38 with a gain of 195.94 points. All shares index closed at 6555.83 with a gain of 70.76 points.
Trading activity was minimal as compared to the last trading session as the ready market volume stands at 108.204 million shares as compared to last trading session 161.934 million shares. Future market volume however stands at 3.060 million shares as compared to 4.633 million shares last trading session. Market capitalisation stands over Rs2.671tr. Total trades decreases to 86,646 as compared to last trading session 98,837.
As many as 212 companies advanced, 141 declined and 20 remained unchanged.
Highest volumes were witnessed in NML at 9.511 million closed at Rs67.04 with a gain of Re0.58 followed by PTC at 7.489 million closed at Rs18.02 with a gain of Re0.19, AHSL at 6.875 million closed at Rs47.80 with a gain of Re0.77.
Ahsan Mehanti at Shehzad Chamdia Securities said buying activity witnessed on continuing foreign interest in oil and gas Sector.
Investors remained bullish as T-Bill yields reduced by 31bps in 12-month tenor increasing expectation for discount rate cut. Rise in international oil prices near to $80.00, expectation of early approval of Leverage products by SECP played a catalyst role in positive activity despite Peshawar blast.
Hasnain Asghar Ali at Aziz Fidahusein said low volume high impact cost due to absence of user-friendly leverage product continue to stay major cause of concern for the local participants and stakeholders.
Low volume gains by the index heavy weight OGDC yet again disallowed the underlying tone to reflect in the benchmark, most of accumulation was done on assumption of and by offshore participants, stagnation and low volumes restricted day trades.
Accumulation was prominent in low priced and high dividend yielding stocks by both retail and corporate participants, while snap rallies in high price stocks stayed a regular feature, mainly to keep excitement alive.