Friday, February 22, 2008

Pakistan Stock Index Hits New High

The KSE-100 closed at an all-time high of 14829.58, continuing the bullish trend after February 18 elections. The buying was spurred by hopes raised by the announcement of PPP and PML(N) agreeing on forming a coalition government.

According to Pakistan's Financial Daily "Business Recorder", the overall market capitalization reached an all time high of Rs 4.606 trillion with a net increase of Rs 41 billion. Healthy trading activity was seen at the share market as the market volume significantly increased to 397.695 million shares as compared to 359.151 million shares traded a day earlier. The futures market turnover however slightly declined to 51.615 million shares against 56.592 million shares previously.

The rally witnessed strong institutional buying coupled with foreign buying. The strong earnings announcements brought buyers in the share market. The investors' expectations for better political situation in days ahead encouraged them to take fresh positions.

There were concerns regarding possible confrontation with President Musharraf, causing the KSE-100 index to close well below the session’s high of 14,957.48 .
Pakistan's Dawn newspaper quotes an analyst as saying,“Quit Musharraf demand by the PPP and the PML-N leaders seems to have put a brake on market’s upward thrust, the perception that the president’s denial to oblige them could lead to a showdown triggered selling.”

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