Gold touches Rs119,000 per tola in domestic markets
Bulls returned to the PSX as KSE-100 Index rose by 1,111.9 points, ending the trading day on Thursday at 44,333.68 points.
Ending the bearish spell, traders took full advantage of the depressed share prices as buying frenzy was witnessed on the market floor, pushing the market capitalization up by Rs1.64 trillion.
On Thursday, the market rose by 2.57% in a single day taking the volume of investment to Rs77.47 trillion.
Shares of Unilever Foods rose by Rs600 to settle at Rs21,000 while shares of Nestle gained Rs135 in value and ended the day at Rs5,850.
The most dramatic drop in value was seen in the shares of Highnoon and Pak Engineering.
At the start of the trading week, KSE-100 Index had dropped 647 points on Monday while on Tuesday it dipped by as much as 680 points but closed just 53.73 points higher than the previous day. On Wednesday, the share market closed 661.3 points down.
In all, the equity market lost 1,308 points.
On Thursday, the market made some recovery after it closed 1,111.9 points higher.
Market analysts attributed the recovery to an IMF report which predicted Pakistan’s GDP growth rate at 4% and the federal finance minister saying that the IMF would soon release the sixth tranche of funding.
Analysts also linked the recovery in the local market to a recovery in the international share markets.
Earlier, foreign investors were pulling their money out of the market. But on Thursday, the market saw an inflow of foreign investment too.
Gold touched $1,800 mark as it gained $29 an ounce in the international market on Thursday.
Domestic bullion markets followed the global trend and the precious metal gained Rs2,300 to end the day’s trading at Rs119,000 per tola. Gold price per 10-gram also rose by Rs1,972 to Rs102,030.
Over the past few days, gold gained Rs3,750 a tola.
The price of silver also inched up by Rs30 to Rs1,430 per tola.
Over the current trading week, gold rose by as much as $45 per ounce in the international market.
Last month, gold had lost $47 per ounce in value.
The depression in the world gold market did not affect the local markets as the rupee continually dwindled against US dollar.