KSE up 125 points after Ebads return

KARACHI - The local equity market witnessed bullish activity on Tuesday, as the benchmark 100-share index closed 125.30 points up, led by institutional and foreign investors interest in commodity scrips. The KSE 100-index closed at 12,443.54 points. The index had closed at 12,318.24 points on Monday. The KSE 30-share index increased by 54.53 points to close at 11,885.78 points, and KSE all share index rose by 80.95 points to close at 8,621.88 points. Market turnover improved to 88.11 million shares compared with 57.34 million shares traded a day earlier. Ahsan Mehanti, Director at Arif Habib Investment Limited, said that foreign and institutional interest in blue chip scrips, record exports and current account surplus for fiscal year 2011, and ease in local political environment after Sindhs Governor Ishrat-ul-Ebad resumed his office played a catalyst role in the positive activity despite the fact that the investors showed serious concerns about uncertainty in global capital markets over potential US debt default and Europe sovereign debt crises. Hasnain Asghar Ali, a senior analyst at Aziz Fida Hussein & Co, said that relative calm and post reconciliation on political front allowed the local bourse to move in positive. Despite technical correction amid corporate profit taking in fertilizer sector stocks, various frontline and mid-tier stocks witnessed renewed buying interest, he said. Although the turnover failed to match the sentiment, the resident participants, mainly on anticipation of renewed buying by the local corporate participants mainly from the government treasuries stayed as the major buyers, while high net worth participants followed the pursuit, he said, adding that with index heavy weights allowing the benchmark to sustain green number, across the board short covering, speculative buying and change of hand led increase in turnover allowed the day to end with impressive, yet deceptive numbers on board.

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