Opening Bell: Bulls win the toss, choose to strike hard

May 29, 2019 (MLN): The domestic equity markets seem to be riding on the back of highly volatile sentiments these past few sessions as the benchmark KSE – 100 index gained over 950 points in intraday today to mark an overall high of 35,906 points so far.

The index is currently trading at 35,824 points which is a gain of 872 points over yesterday’s closing value and a rise of 2.51%.

Commercial banks, fertilizer companies and oil & gas exploration companies are presently benefitting the most from the early trade’s gains as the sectors contribute 174 points, 191 points and 164 points to the index respectively.

Today’s advances are a result of positive sentiments stimulated by government’s efforts to launch a bailout fund to arrest the plunging performance of Pakistan’s stock market. Chairman SECP Mr. Farrukh Sabzwari told Bloomberg in a telephonic conversation, that the launch of this fund is under consideration in the next 10 days.

In a desperate attempt to freeze further market meltdown, the government of Pakistan decided to launch this ‘Disaster Support Fund” worth Rs.15 to Rs.20 billion earlier this month.

This fund is similar to the one launched after the financial crisis in 2008 to save the equity market. Investors had made decent returns on that fund and it received a good response in the market.

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