International Monetary Fund's (IMF) decision to release third tranche of loan to Pakistan put bulls on driving seat at Pakistan's Karachi Stock Exchange (KSE) Monday as the main index went past 8,000 levels.
The positive activities filled up the Exchange as bears got little room to survive and the key index went on to hit highest level of the day of 8,071.46 levels.
At 0619 GMT, the benchmark KSE 100-Index was trading at 8,054.97 points after accumulating 182.74 points, KSE 30-Index jumped by221.43 points to reach at 8,564.63 levels, whereas KSE All Share Index gained 119.07 points and was trading at 5,744.63 levels.
Analysts told Xinhua that now market participants are setting their sights on State Bank of Pakistan (SBP) that is due to announce its monetary stance on August 15 and according to them, market participants are awaiting at least 150-200 basis points cut in the key discount rate.
The IMF's Executive Board, in its all-important meeting Friday, agreed to increase loan to import-bill-stricken Pakistan by an additional 3.2 billion U.S. dollars, which according to newly inducted Finance Minister Shaukat Tareen will be spent on insurance policy terms as the government is facing delay in aid from the Friends of Pakistan (FoP) forum.
The market, as expected, started off the proceedings in a buying euphoria, where aggressive buying by the investors pushed the main index over psychological barrier of 8,000 levels. Another news from the country's banking sector also revved up the investor confidence as MCB Bank's Board of Directors formally approved the proposed acquisition of The Royal Bank of Scotland Ltd (RBS) in the country.
Analysts told Xinhua that if the central bank matches the IMF decision with a substantial rate cut, then market would march towards psychological levels of 9,000. They further stated that there are huge chances that KSE would go past 10,000 before the year end.
Market volumes were also showing far better numbers as turnover of 108,355,690 shares was recorded till filing of this report.
Active issues' chart was presenting a green look where out of total 314 scrips, value of 192 stocks increased, 105 fell, whereas price of another 17 equities remained unchanged.
Oil and Gas Development Company Limited was leading the way on volume leaders' table with turnover of 14,393,378 shares, followed by DG Khan Cement and Arif Habib Securities with 10,657,093 and 7,384,653 shares respectively.
Source: Xinhua
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