Pakistan Stock Index Hits New High
The KSE-100 closed at an all-time high of 14829.58, continuing the bullish trend after February 18 elections. The buying was spurred by hopes raised by the announcement of PPP and PML(N) agreeing on forming a coalition government.
According to Pakistan's Financial Daily "Business Recorder", the overall market capitalization reached an all time high of Rs 4.606 trillion with a net increase of Rs 41 billion. Healthy trading activity was seen at the share market as the market volume significantly increased to 397.695 million shares as compared to 359.151 million shares traded a day earlier. The futures market turnover however slightly declined to 51.615 million shares against 56.592 million shares previously.
The rally witnessed strong institutional buying coupled with foreign buying. The strong earnings announcements brought buyers in the share market. The investors' expectations for better political situation in days ahead encouraged them to take fresh positions.
There were concerns regarding possible confrontation with President Musharraf, causing the KSE-100 index to close well below the session’s high of 14,957.48 .
Pakistan's Dawn newspaper quotes an analyst as saying,“Quit Musharraf demand by the PPP and the PML-N leaders seems to have put a brake on market’s upward thrust, the perception that the president’s denial to oblige them could lead to a showdown triggered selling.”
According to Pakistan's Financial Daily "Business Recorder", the overall market capitalization reached an all time high of Rs 4.606 trillion with a net increase of Rs 41 billion. Healthy trading activity was seen at the share market as the market volume significantly increased to 397.695 million shares as compared to 359.151 million shares traded a day earlier. The futures market turnover however slightly declined to 51.615 million shares against 56.592 million shares previously.
The rally witnessed strong institutional buying coupled with foreign buying. The strong earnings announcements brought buyers in the share market. The investors' expectations for better political situation in days ahead encouraged them to take fresh positions.
There were concerns regarding possible confrontation with President Musharraf, causing the KSE-100 index to close well below the session’s high of 14,957.48 .
Pakistan's Dawn newspaper quotes an analyst as saying,“Quit Musharraf demand by the PPP and the PML-N leaders seems to have put a brake on market’s upward thrust, the perception that the president’s denial to oblige them could lead to a showdown triggered selling.”
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Pakistani stock market surged by over 500 points today to a record high of 21,500 points on heavy buying by overseas investors, amid reports government plans to sell treasury bills worth USD 5 billion to pare debt.
The Karachi Stock Exchange's benchmark 100-share index closed 2.59 per cent, or 542.86 points, higher at 21,501.72.
"The market was buoyed by reports today that the new government plans to sell USD 5 billion in treasury bills to pay off a chain of debt that has led to power crisis and is affecting the economy," Sohail Ahmed, a market analyst, said.
The new government is planning to pay off the debt within the first 100 days in power as it believes the economy will only be lifted and foreign investments will grow if the power shortage crisis is dealt with immediately, said experts.
In Lahore, Pakistan's Prime Minister-designate Nawaz Sharif pledged that the incoming PML-N government would make efforts to overcome power problem as soon as possible.
The stock market rally came after two straight days of decline.
On the previous two trading days, the stock market saw profit-booking after a wave of massive buying saw investors betting big that the crisis-ridden economy would revert back to high growth under Sharif, set to become premier for an unprecedented third term.
The Pakistani rupee also remained stable on Tuesday ending in the market on 98.43/98.49 against the US dollar.
Sharif, himself an industrialist and co-owner of diversified multi-million dollar conglomerate Ittefaq group, has said that revival of economy would be among his top priorities. He is seen by many in Pakistan as someone who can fix the country's bleeding economy.
There are only 569 listed companies on the Karachi Stock Exchange, as against about 5,000 in the Indian stock market, where total investor wealth is close to Rs 70 lakh crore.
The number of companies listed on KSE has come down in the past few years, from more than 650 in 2009, as the country's economy has been struggling amid a turbulent political scene.
However, a clear mandate in the just-held historic polls is expected to revive the economic activities and therefore the stock markets as well.
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