RISING TREND OF PRICES ON THE DAY

RISING TREND OF PRICES ON THE DAY
Q Reproduce the following extract of market report in non-technical language:
Karachi December 09,2001:

“The Stock Market gave an improved performance yesterday on amid relatively increased activity
share values staged modes recovery across a broad front following revival of demand at the lower
levels aided mainly by good dividend news”.
“Trading in the forward counter was highlighted by a sharp spurt in National Motors following the
announcement of handsome dividend. After opening 55 paisa up against the overnight close which
proved to be the day’s lowest bid, it steadily advanced to hid the day’s peak Rs. 29.00 but finished
somewhat reacted round Rs. 3.15 Bullish hella was, however, not declared due to clearing Barring a
few, all issues suffered falls ”.
ANSWER:
a) Comments:
This is an extract from Karachi Stock Exchange as on December 08,2001, showing on improved
performance as compared to the yesterday’s business. The main reason for the increase in price was a
good dividend news – most of the companies decided to declare a handsome amount of dividend to
their share-holders.
The demand for the purchase of shares was high. This was another reason for cheerful starts as
compared to dull business previously.
b) Interpretation:
During the day under review business on future settlement became quite cheerful on account of the
announcement of handsome dividend from National Motors. In the very opening of the exchange
Shares were 55 paisa up, but looking though the day’s transactions they were the lowest price of
Shares for the day. They touched the peak of Rs. 29.00 but closed on Rs. 27.90 owing to subsequent
profit selling. On an aggregate, it showed a rise of.