Foreign inflows propel index by 288 points

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KARACHI: Bulls continued to rule the roost at the stock market, collecting another 287.64 points on Wednesday to close at an all-time high of 28,941.01 points. The closing remained slightly short of the incredible 29,000 level. As the benchmark index settled near the intraday high, analysts thought it indicated that the bulls would continue to hold sway in the upcoming sessions. The current stock market boom has propelled index up by 532 points in just the three sessions this week, which including the previous week’s gains has seen the benchmark index soar by 1,824 points in only the last eight sessions.

While nervous individual investors took to profit booking on Wednesday, the foreign investors’ interest in the Pakistan equity market remained unwavered.

Overseas investors bought net $5.90 million worth shares on Wednesday, which including inflows in the earlier two days, resulted in foreign investment of $20.4m in three sessions this week. It also amounted to aggregate overseas investment in equities at staggering $55m in the last eight sessions.

Analyst Samar Iqbal at Topline Securities commented that investors were encouraged following the reports of government’s success in raising highest ever amount of $2bn in one attempt through Eurobonds, as a result of which the rupee further strengthened.

The Eurobond issue is marked as the most successful international offer after a gap of seven years.

In Wednesday’s trade at the KSE, the foreigners’ favourite oil and gas sector saw price increases in PPL, APL, NRL and OGDC by 1.95pc; 1.13pc; 2.11pc and 0.89pc and banking stocks continued to rise with ABL, MCB Bank, BAFL and FABL up by 3.80pc; 1.03pc; 2.49pc and 2.11pc.

After dull trade in previous sessions, cement stocks staged a comeback on Wednesday with the sector posting all round gains.