The just-concluded holy month of Ramazan saw the trading volumes at the record-breaking Karachi Stock Exchange (KSE), surpassing all previous barriers. While the daily share trading at the country's largest bourse registered an increase of 27 percent during the week that ended on July 16, a monthly account of trading turnover depicts a new record.
Ahmed Lakhani of AHL Research observed that KSE created a new record of 381 million average daily volumes during Ramazan when the bourse usually remains volume-starved. Volumes during this Ramazan in the KSE-100 have surpassed all barriers, creating a new record of 381 million average volumes per day, he said.
"This, we view, is in continuation of a positive volume trend heightened further since the announcement of the FY16 budget, which is a signal of the optimism of investors - local and foreign alike - in the potential of Pakistan's capital markets," said Ahmed. The last trading day before Eid holidays befittingly recorded the highest traded volume of 602.4 million shares, capping off what the analyst said a wonderful month for the market participants. The average return during the month was recorded at 3.5 percent, which is second highest in the past six years (3.9 percent last year).
Ramazan witnessed Karachi equities adding four percent, something Topline analysts dubbed contrary to common perception. Despite shorter trading sessions in Ramazan, they said, the average daily volume at Karachi bourse grew by 45 percent from previous month to 383 million shares. While the traded value rose by 17 percent in Pak Rupee terms. Also, the market performed well with the benchmark KSE-100 index increasing by 2.2 percent on the back of investors' expectation of better corporate results, said analysts at Topline Research.
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