Bulls toss index above 34,000-level
KARACHI: Bulls staged a surprise rally on Thursday which sent the KSE-100 index up to intraday high by 545 points. The closing was seen above the 34,000-level at 34,204, registering increase of 442 points (1.31 per cent).
The political scenario remained murky with the JUI (F) Azadi march knocking the doors of the federal capital. The uncertainty of events following the entry into Islamabad by the protestors kept investors on tenterhooks. But the reason that set the market fears aside was the further drop in Pakistan Investment Bonds auction a day earlier.
Analysts said that yields declined especially in 10-year instrument that fortified the view of rate cut in the upcoming monetary policy. Announcement of next auction before the next monetary policy also helped money managers take a view that the yields will decrease further or at least remain the same.
It raised hopes of flow of funds back to equities from fixed income securities. The market was also supported by the end of traders’ strike after they reached an agreement with the Federal Board of Revenue.