Bull run continues as stocks jump 825 points
KARACHI: Bull rampage continued for eighth session in a row, representing the longest winning streak in 2019. The benchmark KSE-100 index propelled 824.94 points (2.3 per cent) to settle at 36,803.10 on Monday.
This added Rs101 billion to the market capitalisation which crossed the Rs7 trillion-mark and settled at Rs7.06tr. Collectively in the eight sessions, the index has gained 9pc or 3,042 points — the highest since Nov 2.
Investors went into frenzied buying across the board led by mutual funds with contributions coming in from individuals and brokers. Banks, however, tried throwing spanner in the works with heavy selling of stocks worth $6.48m.
The liquidity was successfully absorbed by local institutions. Foreigners also joined the buyers picking shares of $1.4 million. Sentiments were buoyed by several positive developments. On the economic front, MSCI review of a Pakistan downgrade did not materialise while much of the market was still confident of a rate cut in the upcoming monetary policy.
The reports last week of International Monetary Fund mission’s appreciation for over-performing on the first quarter targets, paving way for disbursement of $450m, gave confidence to investors. The downward revision of inflation target for FY20 at 11.8pc against 13.0pc also helped build sentiments.