Bullish trend continued at the share market here during last week ending on July 8, 2007 with the KSE-100 index crossing the 14,000 points level to hit 14,028 points intra-day high and finally closed at 13,985.89 points with a gain of 213.43 points, or 1.5 percent.
The KSE-30 index also gained 41.98 points, closing at 17,035.49 points level.
Analysts said that the market men seemed to ignore the law and order situation as they took fresh positions on the back of significant growth in cement dispatches, increase in oil prices in the international market, new discovery of oil and gas, launching of UBL GDRs, and highest ever dividend announced by NIT.
The market witnessed healthy trading activity through the week as average daily volume at ready market reached 21-week high of 395.636 million shares against 379 million shares of previous week.
The average daily turnover on futures market, however, declined to 56 million shares against an average of 89 million previously. Market capitalisation rose to Rs 4.103 trillion from Rs 4.066 trillion of previous week.
On Monday, the KSE-100 index crossed 13,900 points on the back of fresh buying mainly in telecom and cement sectors. The index gained 157.24 points and closed at 13,929.70 points.
The law and order situation in Islamabad created uncertainty among the investors on Tuesday and the market men opted to offload their holdings. Although the market started on a positive note and the KSE-100 index hit 13,994.16 points intra-day high, the index failed to sustain that level and finally closed at 13,809.85 points level, down by 119.85 points.
The market men remained cautious on Wednesday due to law and order situation in Islamabad. However, fresh buying in oil and cement sectors supported the index to recover 59.18 points and to close at 13,869.03 points.
The uptrend continued on Thursday and the KSE-100 index crossed 14,000 pints mark on the back of fresh buying mainly in oil sector. However, the index failed to sustain that level due to profit-taking in banking and cement sectors. Finally the index closed at 13,942.00 points level with a net gain of 72.97 points. On Friday, once again, the index crossed 14,000 points mark but faced resistance and finally closed at 13,985.89 points with a net gain of 43.89 points.
Farhan Aziz at JS Global Capital Limited said that the Lal Masjid issue and tense situation in Islamabad had some negative effect on the market in the middle of the week. However, this bearish spell could not last for more than one day and the market later on recovered on the back of positive sector-specific news. Rise in oil prices in the international market resulted in price appreciation in energy stocks. The news of discovery by OGDC also contributed to the bull-run.
Jawad Haleem at Atlas Capital Markets said that Central Depository Company''s planned roadshows in London and New York to showcase the investment opportunities in Pakistan Capital Market were a big support to upward momentum in the market. OGDC performed well among the oil and gas sector stocks on the back of its discovery in Tando Allah Yar and getting a new off-shore exploration licence in Arabian Sea. Cement sector also remained in limelight due to all time high exports and sales.
Ambreen Jiwani an analyst at Invest Capital & Securities Limited said that Tobacco and Refinery sectors gained the most increasing by 13 percent each, followed by Modarabas by 10 percent and Auto Parts & Accessories by 9 percent. Among the major losers, Leather & Textile lost by 7 percent and Tanneries by 4 percent. The blue chip sectors namely Banking, Cement, Fertiliser OMC and E&P gained by zero percent, 2 percent, 3 percent, 7 percent and 3 percent respectively.
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