Local stocks end up; Index closes at 10,201 points
KARACHI: Stocks at Karachi Stock Exchange rose on thin trade on Monday amid hopes of strong corporate results while dealers said investors were waiting for the introduction of a leverage product in the market.
The Karachi Stock Exchange”s benchmark 100-share index, ended 0.47 percent, or 48 points, higher at 10,201.85points on turnover of 67.79 million shares.
“Investors are accumulating selective shares on hopes of healthy profits but volumes will only increase once a leverage product is introduced,” said Sajid Bhanji, a dealer at Arif Habib Ltd.
Results for the year ending June 30 are due to be announced in the coming weeks.
Dealers said volume is likely to improve after the expected reintroduction of margin buying.
The Karachi Stock Exchange authorities and the Securities and Exchange Commission of Pakistan (SECP) met this month to discuss the reintroduction of margin buying and the KSE sentits recommendations to the SECP on Friday.
London shares edge ahead in opening deals
LONDON: Leading shares crept up at the start of trading on Tuesday but investors remained generally nervous ahead of high-profile US earnings data.
The FTSE 100 index gained 0.29 percent to 5,182.01 points at the open.
The first of the US blue-chip second quarter earnings results, from aluminium giant Alcoa, came in positive Monday.
But investors were still awaiting more US earnings news later this week.
Dollar, euro firm as Asian stocks rebound
TOKYO: The dollar and the euro gained ground Monday, as rising Asian shares helped bolster risk appetite after recovery hopes were supported by a survey that showed US consumer confidence increasing.
The dollar rose to 91.87 yen in Tokyo morning trade, up from 91.65 in New York on Friday.
The euro rose to 1.2173 dollars from 1.2112 and to 111.85 yen from 111.00.
Gains across Asian bourses encouraged short-term investors to buy riskier assets, analysts said, reducing demand for the safe-haven yen.
On Friday a private survey showed a stronger-than-expected rise in US consumer sentiment in June, fuelling optimism that retail sales would pick up after falling in May, when markets were roiled by eurozone debt worries.
In Tokyo, the headline Nikkei index gained 1.56 percent in morning trade, while Hong Kong”s Hang Seng Index opened 1.03 percent higher.
The rise of the dollar against the yen was likely to continue “on expectations for stocks to be firmer,” Mitsuru Sahara, senior dealer at Bank of Tokyo-Mitsubishi UFJ, told Dow Jones Newswires.
However, investors were looking to sell the US currency once it hits above the 92.00 to 93.00 yen range, he said.
The South Korean won was up sharply against the US dollar, helped by a 0.97 percent rise in Korean stocks. The dollar was at 1,229.5 won, down from 1,246.1 Friday.
Traders said the announcement Sunday of measures to ease the impact of rapid capital flows on the local economy, including new rules to limit local and foreign banks” foreign exchange forward positions, had little impact on the markets as it had been well flagged.
KSE-100 Index hits 19-month high at 10,416
KARACHI: Continued foreign investment in the local stocks Friday pushed the benchmark KSE-100 Index up by 170 points to a 19-month high at 10,416.
The main Index began its march ahead with green numbers and sustained the positive trend throughout the two sessions. The Index touched the intra-day high level at 10,430 but closed a bit lower at 10,416 at the closing bell which is the highest level since August 2008.
The investors were seen taking particular interest in fertilizer and banking sectors.
The market turnover was recorded at 200 million shares with TRG Pakistan hitting the top slot in the list of today’s volume leaders at Rs4.25 with a gain of paisas 42.
On the other hand, KSE-30 Index climbed 181 points to finish at 10,680.
Stock Markete 1% Cut In Interest
PAKISTAN, KARACHI: The stock markets across the country could witness correction, following the State Bank announcement of cut in interest rate merely by one percent.
Karachi Stock Exchange members—Arif Habib, Aqeel Karim Dedhi and Siddique Dalal talking to Geo news said that the investors were expecting cut in interest rate by two percent, but in the backdrop of the current decision, a correction up to 200 to 300 points could be seen.
They said that the revision of discount after every two months augured well, as it gives rise to hopes of further cut in the interest rate in future. Stock members said that the liquidity crunch in the market would also be solved by a slash in 10 percent market repo rate.
