The continuous boost in share prices last week helped the market capitalisation of Karachi Stock Exchange to touch the new all-time high level of $57.2 billion as inflows from the overseas and local financial institutions remained steady in oil, gas, textile and banking groups.
Another record was set at the local market when the index crossed the psychological barrier of 12000 points and closed at 12137 points--highest ever so far closing made by Pakistan''s capital market. Transfer of PTCL management to Etisalat, higher global oil prices (close to $70/barrel) and positive inflow of portfolio investment in April kept the index setting new records, though the law & order situation in Karachi, after the bomb blast on Tuesday, April 11, 2006, had caused some intra-day corrections.
Average daily volume during the week was 351 million shares (Rs 49.9 billion or $832 million) as compared to 392 million shares (Rs 48.5 billion or $809 million) observed on previous Friday.
Market capitalisation also rose by 1.26 percent to reach an all-time high of Rs 3.43 trillion, or $57.2 billion. This was Rs 3.38 trillion or $56.5 billion on previous Friday.
An analyst from Alfalah Securities said that the bullish sentiment continued in the KSE-100 despite the sad incident on Tuesday resulting in the deaths of many innocent people. The jittery situation failed to hamper the sentiment of the investors as the index kept on rising. However, a decrease in average trading volume (down by 12 percent W-o-W) was witnessed as a lot of people preferred to stay at home until the situation in the city calmed down.
Monday saw the market adding 55 points to the index (up by 0.5 percent) as interest in the banking sector continued on the back of optimistic earnings. Both major banks, MCB and NBP, continued their upward trend as they closed up 2.5 percent and 1.6 percent, respectively.
The KSE-100 index added another 16 points, or 0.1percent, on Thursday. The market remained closed on April 12 to mourn the victims of the bombings in Karachi that took place on April 11.
Once again, keen interest was witnessed in the banking sector, with Union Bank leading from the front. The stock moved up 5 percent on rumours regarding the take-over of Union Bank by Standard Chartered Bank. MCB also moved up 1.8 percent to close at Rs 264.5.
Azgard Nine continued to move up and closed up 5 percent as the textile maker purchased stake in Pak American Fertiliser Ltd. Some interest was witnessed in the oil and gas sector as POL moved up 1.9 percent (Rs 667.1) as higher international oil prices encouraged the investors to buy stocks in oil and gas sector on expectations that their earnings would increase.
The last day of the week saw significant interest building up in oil and gas sector. The market added another 75 points to the index (up 0.6 percent) to close at 12136 points. POL and PPL were the star performers, closing up 5 percent and 3 percent, respectively. However, the banking sector showed lacklustre performance. Faysal Bank announced its quarterly result, which saw the stock close down 5 percent as the results were below market expectations. Union Bank continued its bullish run yet again, closing up 5 percent.
"We maintain a bullish stance on the market as we expect an upside in the index heavyweight oil and gas sector on the back of increase in world oil prices due to escalating tensions between Iran and the US and the decreasing gas reserves of US," analyst from Alfalah Securities said.
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