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Market stabilisation steps boost index 8.60 per cent

KARACHI - The KSE 100-share index yesterday surpassed all its previous single-session high records as it recovered 960.50 points or 8.60 per cent at 12,122.67 boosted by market stabilisation steps taken jointly by the KSE and Security Exchange Commission to forestall fresh fall.

Many still doubt market's ability to sustain an apparent inspired run-up, said a leading stock broker adding “there is no change in the political scenario, the chief villain behind the market crash and erosion of billion of rupees as the light volume tells the tragic side of the episode.”

But some others said the market has shown its tremendous potential to rise from the lows in response to positive news and corrective steps irrespective of the political tensions and uncertainty.

The recovery of Rs.285.00 in the market capital at Rs.3,731 billion points to the inherent strength of the market.

Never before in the history of the KSE the index has shown such an unprecedented recovery in a single session, they said adding the current record may not be easily bettered in the years to come.

The previous single-session high record was set at 643.04 points at 13,996.42 on January 3 after the postponement of national election after Benazir Bhutto's murder.

The KSE 30-share index also set a new all-time high record at 13,969.56, up 1,219.28 points or 9.56 per cent, reflecting the strength of leading base shares.

But some analysts ask the wisdom behind the belated intervention after much water has flown under the bridge and the small investor has virtually lost all of his savings invested in the share business.

The rally was not broad-based and was confined to a dozen leading base shares, notably MCB, Pakistan Oilfields, OGDC, Engro Chemical, which recovered previous losses by Rs.11.to 34.00 and contributed more than a half to the total, said a leading broker.

Under the market stabilisation measures, among others, lower and upper circuit breakers now will be applicable at price variation of one and 10 per cent respectively from the previous close and a total ban on short-selling, they said.

During the post-budget sessions the market had progressively fallen by 5,000 points on foreign and local selling and needed technical correction but in the absence of buying support from any quarter, fall was not arrested.

Nestle Pakistan and Wyeht Pakistan were among the top gaines,up by Rs.103.50 and 193.90, while losers were led by Colgate Pakistan and Siemens Pakistan, off by Rs.6.03 and 10.00.

Trading volume rose to 184m shares from the previous 155m shares as losers forced a strong lead over the gainers at 299 to 27, with 14 shares holding on to the last levels.

OGDC topped the list of actives, up by Rs.11.70 at Rs.128.70 on 17m shares followed by Lucky Cement, higher by Rs.8.83 at Rs.97.18 on 6m shares, PTCL, up Rs.3.61 at Rs.39.71 also on 6m shares, Pakistan Oilfields sharply higher by Rs.34.34 at Rs.377.77 on 6m shares.