A recovery in oil prices in the international market coupled with strong corporate results pushed the KSE index over the psychological barrier of 11,000 points during the outgoing week ended January 26, 2007.
The week started on a positive note as the KSE-100 index perched consecutively throughout the week ending at an almost two-month high of 11,105.34 point level, up by 4.4 percent gaining 464.03 points on week-on-week basis, while the KSE-30 index surged by 624.37 points to close at 14,017.14 points level.
Average daily volumes of the week were up by 24 percent to 220 million shares as compared to 177 million shares during a week earlier. Market capitalisation on the other hand rose by 4 percent to Rs 3.033 trillion as compared to Rs 2.917 trillion.
Khurram Ghafran at KASB Securities said that on Monday, investors sentiment was buoyed by Engro's 10 percent year-on-year growth in earnings which beat market expectation by 10 to 12 percent while China Mobile also announced its plans to acquiring 89 percent majority stake in Paktel for $ 284 million. The index took a breather on Tuesday after closing in the green for 7 consecutive sessions before continuing its upward march on Wednesday on rumours of interest by the Barclays Bank to acquire MCB, news that PSO's privatisation was on schedule and higher than expected corporate results for FFBL. PPL's half yearly results, which were above market expectations and the extension in implementation of Client Level Netting allowed the market to cross the crucial 11,000 level on Thursday. The market remained buoyant on the last day of the week despite the approaching four-day weekend and a bomb blast in a Islamabad hotel during trading hours.
Tariq Hussain Khan at Atlas Capital Market said that during the week the SECP also announced some measures which include implementation of Client Level Netting from March 1, 2007 for the ready market and from April 1, 2007 for the Futures Deliverable Market, which also posted positive sentiment in the market. Results of some of the blue chips ie PPL, Engro and FFBL beat the expectation along with handsome payout. Various rumours also revolved in the market regarding the sell-off of majority stake of MCB. Along with that news of various successful fields exploration envisaged positive sentiment in the share price of E&P sector companies.
"For the coming week, we recommend a cautious approach as the index hasn't witnessed a correction during the week", he said, adding that results of some blue chips in coming weeks would be the major triggers", said Tariq Hussain Khan Ali Khizar, at Janangir Siddiqui Securities, said that higher than expected results of fertiliser and oil stocks accelerated the momentum of stock market. Engro, FFBL and PPL posted better results than the general market expectations. Moreover, the rebound in oil prices brought the oil sector into the limelight. The E&P sector market cap grew by 4.7 percent versus the KSE index gain of 4.4 percent. Commercial banks continued their upward journey with 5.7 percent increase in the market capitalisation. The MCB attracted major buying resulted in 9.3 percent gain in the share price during the week. Besides foreign led buying, the news of mergers and acquisition kept the positive momentum in the banking sector.
The market started off on a positive note on Monday and the KSE-100 index closed near the intra-day high at 10,705.87 points, with a gain of 64.56 points. On Tuesday, after managing to hold the positive territory for the last seven consecutive sessions, the market closed marginally (0.55 points) lower on profit-taking in notable scrips. The KSE-100 index closed at the 10,705.32 point level, down by 0.55 points. The KSE-100 index posted a gain of 151.42 points and closed at its intra-day high level of 10856.74 points on Wednesday.
The Karachi share market witnessed a day of phenomenal gains with the KSE-100 index breaching the 11000-point mark after 52 trading sessions on Thursday. The KSE-100 index surged by 174.34 points to close at 11031.08 points level. The share market on Friday continued its upward march as fresh funds were injected in banking and telecom sectors which supported the index to rise further. The KSE-100 index surged by 74.26 points to close at 11,105.34 points level.
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