KARACHI: Stocks were on fire also on the second day of the New Year with the KSE-100 index raking in astounding gains of 1,080.76 points (2.61 per cent).
The index galloped past the 42,000-level and settled at 42,490.76, representing 16-month high — trading at that level last seen on Aug 28, 2018. Market capitalisation surged by Rs160bn in a single day on Thursday.
The bulls rampaged all over the market right from the start with share prices of scores of companies, across the board, quickly hitting upper circuits. Investors’ exuberance was fed by the downward adjustment in profit rates between 24bps and 36bps on National Savings Schemes, which signified the possibility of flow of funds into the capital market going forward.
Positive reports by several brokerage houses provided fuel to the optimism on the basis of ongoing macroeconomic recovery, and improving outlook for corporate profitability. Mutual Funds that were sitting on cash for a while entered the market and built fresh positions worth $8.02 million.