Staff Reporter
Karachi
The benchmark KSE-100 index opened on a positive note, with market participants welcoming the prime minister’s Rs15-billion relief package to tackle inflation.
However, trading remained subdued throughout the day. Later, the index dived back into the red zone as rumours about the resignation of Federal Board of Revenue (FBR) chairman started doing the rounds.
Fortunately, FBR Chairman Shabbar Zaidi put the reports to rest, which prompted a flurry of buying activity and pushed the index up by nearly 700 points. At close, the benchmark KSE-100 index recorded an increase of 417.76 points, or 1.06%, to settle at 39,714.46.
JS Global analyst Danish Ladhani said equities closed on a positive note with the benchmark KSE-100 index gaining 418 points. “The market remained lacklustre as value buying was witnessed ahead of the results season,” he said. Hubco (+4.3%), Lucky Cement (+2.4%), Oil and Gas Development Company (+1.5%), PSO (+3.3%), Pakistan Oilfields (+2.4%) and Engro (+0.8%) cumulatively contributed 217 points to positive close of the index.
Traded value stood very low at $39 million, down 9% and volumes came in at 161 million shares, down 11%. “However, we expect the market to trade sideways in the short term on the back of uncertainty on the political front, ongoing IMF review and FATF review session this month,” Ladhani added. Aba Ali Habib, in its report, stated that the index found its support and resistance at 39,084.86 points and 39,985.96 points respectively.
