Roundup: KSE surges big on "Badla" news
Wednesday, July 07, 2021 8:41 AM

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KARACHI, Jul. 7, 2010 (Xinhua News Agency) -- After a consecutive bearish spell, the equities at Pakistan's Karachi Stock Exchange (KSE) surged by over 2 percent to close just below 9,800 here Wednesday on rumours of return of "Badla" financing (margin financing) in the market.

The benchmark KSE 100-Index bolstered by 2.24 percent or 214.49 points to close the day at 9,789.69, KSE 30-Index jumped by 2.52 percent or 237.41 points to end at 9,652.51 and KSE All Share Index ballooned by 2.15 percent or 144.50 points to finish at 6, 864.33.

Bulls were there right from the start as after the opening bells, the main index started its roller-coaster ride and kept on surging all day long. Analysts said that there were rumours in the market that the KSE authorities have decided to re-introduce the margin financing in the market, which caught the investors' interest big time and they took positions in an oversold market. Towards the final couple of hours, the key index managed to hit the 9,800 levels after a span of 45 days as the last time it traded above the psychological barrier was on May 24, 2022 when it eventually ended below the 9,800 level. The market achieved its intraday high of 9,800.39 before closing just 11 points lower.

Syed Faran Rizvi, Director SMH Financial Solution, told the Xinhua scribe that Wednesday started with a flurry of positive trade as news or rumours of margin financing system's re- introduction buoyed investors.

He stated that hopes regarding a fruitful meeting between the KSE authorities and the government officials, due on Friday, also came to support bulls as the key index remained in the green zone all day long.

"A black body occurred and lacklustre activities were absorbed on Tuesday as the market recorded 52-week lowest volumes, hence making the case of a strong bullish return", he stated.

"We recommend traders to buy near 9,608 levels and order stop loss at the level of 9,568. We are seeing continuation of range bound activities until the market breaks its up- or down-side range that is 9,835 and 9,564 respectively", he added.

Investors showed keen interest in trading activities on the rumours of return of the badla financing system at the KSE which was quite evident with the market volumes improving for the second straight day to 50.551 million shares from 29.778 million shares, thus showing an increase by 20.773 million shares.

Lotte Pakistan PTA Limited was the top volume gainer of the day with trading of 5.978 million shares, followed by Jahangir Siddiqui Company Limited, TRG Pakistan Limited, Amtex Limited, and Azgard Nine Limited with turnovers of 3.998 million, 3.198 million, 3.155 million, and 1.798 million shares respectively.

In the broader market, a total of 378 scrips traded hands during the day where gainers outclassed losers with a ratio of 264 to 99 while prices of 15 other stocks remained unchanged.

Nestle Pakistan emerged as the top price gainer of the day with 77.95 rupee (92 US cents)increment to close at 1,636.95 rupee (19. 26 US dollars) whereas UniLever (NYSE:UL) Pakistan Foods led the losing numbers with 48 rupee (0.56 US cents) decrement to finish the day at 940 rupee (11 US dollars).

 

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