KSE bullish

The share market last week ended on April 15, 2007 maintained upward momentum and KSE-100 index gained 322.10 points, or 2.8 percent, at 50-week high level of 11,977.74 points level, and KSE-30 index gained 344.33 points, closing at 14,908.77 points level.
The market witnessed healthy trading activity as the ready volume increased by 273.08 million shares, or 26.90 percent, against previous week''s 215.60 million shares and the average future market turnover surged by 31.89 percent to 63.19 million shares against 47.91 million shares traded a week earlier. However, market capitalisation remained unchanged at Rs 3.07 trillion.
Across the board buying was observed throughout the week with investors'' interest mainly seen in cement, E&P and banking stocks. The sentiment the bourse remained buoyant throughout the week and the index finished in the green on all five trading days.
On Monday, the KSE-100 index, after witnessing mixed trend, oscillating between 11,710.88 points high and 11,614.11 points low, it settled at 11,676.59 points level, with a gain of 20.95 points.
The upward momentum continued on Tuesday on the back of approval of exploration policy draft by the Prime Minister, which invited fresh buying at the market and KSE-100 index crossed the 11,700 points mark and settled at 11,773.90 points level, gaining 97.31 points.
The market witnessed a bullish trading session on Wednesday and the KSE-100 index crossed 11,800 points crucial level, closing at 11,894.96 points level with a gain of 121.06 points.
On Thursday, the market started on a positive note and after witnessing across the board buying the KSE-100 index crossed the 11,900 points level and hit the 11,964.08 points intra-day high. However, late selling pushed the index into negative territory at 11,876.24 points intra-day low, but finally closed at 11,905.92 points level, up by 10.96 points.
The might of bulls remained unchallenged on Friday and after witnessing a buying rally, led by banking and cement sectors, the KSE-100 index gained 71.82 points to close at 11,977.74 points level.
Farhan Aziz Khan, analyst at JS Global Capital Limited, said that the investors'' interest mainly concentrated in cement, banking and E&P sectors. The cement sector rose by 4.1 percent, in anticipation of better earnings in the second half of FY07. Likewise, the petroleum ministry released a draft of new petroleum policy, which triggered investors'' interest in the exploration sector and as a result the sector outperformed the market to close 3.0 percent higher. The banking sector, excluding Standard Chartered, also performed well and gained 4.0 percent.
Ahsan Mehanti at Shehzad Chamdia Securities said that the market witnessed March 2007 results'' rally where results are due to be announced in weeks to follow. Approved draft of 2007 petroleum policy was also a positive sign as the investors believed that it would positively affect the earnings of oil exploration companies mainly PPL and OGDC.
Oil price in the international market remained on a higher side due to US inventory drop and SCRA balances rose by $10 million to reach $585 million during the week. The banking sector was in limelight due to higher expected earnings this quarter owing to higher spreads.
Ambreen Jiwani at Invest Capital & Securities said that major gainers included Refinery, Jute and Paper and Board sectors, which surged by 10 percent, 10 percent and 7 percent respectively. Commercial banks (excluding Standard Chartered), cement and auto assembler stocks were up by 4 percent each. Exploration and production as well as oil & gas marketing stocks gained by 3 percent each.
Syed Khurram Ghufran at KASB Securities said that record cement exports and robust local demand during last few months allowed the cement stocks push the KSE index early in the week. Lucky Cement, which is the main beneficiary with 26 percent of its revenue coming from exports, continued its upward march closing up by 2.6 percent at the start of the week. Oil stocks joined the party on Tuesday as the Prime Minister approved the exploration policy draft, which increased gas prices by 14 percent and was likely to help attract future investment into new exploration.
POL and OGDC continued to fly high on Wednesday as rumours of positive developments in the Pindori field caught the market''s fancy. Banks took over where the oil stocks had left off on Thursday as the market continued to make gains on good volumes and even the hearing of the Chief Justice on Friday could not suppress the euphoria at the bourses.