KSE-100 Index soars to 47,226.11 points with 426.1m share trades worth Rs1.81b
Bullish trend prevailed in Pakistan Stock Exchange on Friday, the last trading day of the week and KSE-100 Index rose by 600.99 points to settle at 47,226.11 points.
On September 10, activity was seen in the shares of 391 companies. Of the total, share prices of 218 companies surged while the share price of 160 firms depicted a downward trend. There was no change in the share price of 13 companies.
Trade volume surged to 426.125 million shares cumulatively worth Rs1.81162 billion.
A major development was when Morgan Stanley Capital International (MSCI) downgraded Pakistan share market from Emerging Market to Frontier Market. Traders had been anticipating this decision for quite some time and investors were wary from taking any risk.
On Monday, the first day of the trading week, KSE-100 Index shed 38.95 points while it lost 188.56 points on Tuesday. On the third day of the week, the share index dropped by 333.25 points. Cumulatively, the KSE-100 Index had lost more than 560 points in three days. The share market later recouped some of the losses on Thursday and Friday, offsetting the bearish trend seen in the market on the previous three days of the week.
The research head of Spectrum Securities, Abdul Azeem, told SAMAA Digital that the market had been bolstered by news of stability and the new government in Afghanistan while Kabul and Islamabad had agreed to conduct all trade between the two countries in Pakistani rupee. These developments, he said, had boosted the confidence of investors.
He also attributed positive sentiments in the market because of the presence of an IT firm, KIPO.
According to him, investors appeared more interested in dealing with shares of cement, IT and technology firms.
The analyst at Top Line Securities, Atif Zafar, Pakistani rupee was coming under pressure from the rise in the US dollar rate, developments in Afghanistan and news of rising domestic trade deficit.
However, he said, the biggest event that happened in the week lasting between September 6 to September 10 was the news of the downgrading of Pakistan market by Morgan Stanley. He said that while investors opted to withdraw their money from the market earlier in the week, but the share market had later recovered as share prices dipped to attractive levels in the last two days of the trading week.