Upward trend on share market

Karachi share market took upward trend during the week ended on February 2, 2008 and KSE-100 index surged by 118.05 points, closing at 13,974.41 points level. The market capitalisation based KSE-30 index gained 149.53 points and settled at 16,666.03 points level.
Trading remained dull and ready market daily average volume declined by 29 percent to 175 million shares from previous 246 million shares. It was the lowest since December 31, 2007. The average daily turnover of futures market decreased to 23 million shares against 63 million shares a week earlier.
Market capitalisation surged by Rs 35 billion to Rs 4.287 trillion.
The market opened on a positive note on Monday on the back of corporate results coupled with increasing oil prices in the international market that attracted retail and institutional investors to take fresh positions.
The KSE-100 index gained 24.12 points to close at 13,880.48 points level. However, the KSE-30 index declined by 38.73 points to settle at 16,477.77 points level.
On Tuesday, the market witnessed a result announcement rally and the KSE-100 index surged by 128.52 points to close at 14,009.00 points level. The KSE-30 index gained 179.39 points and settled at 16,657.16 points level.
On Wednesday, the market took a downturn as the players opted to offload their holdings on available margins, and the KSE-100 index closed at 13,990.11 points level, down by 18.89 points. However, the KSE-30 index was up by 5.85 points, settling at 16,663.01 points level,.
On Thursday, the market witnessed a volatile session. However, the KSE-100 index managed to close in the green at 14,017.01 points level with a net gain of 26.90 points, while the KSE-30 index increased by 32.91 points and settled at 16,695.92 points level.
On Friday, the KSE-100 index lost 42.60 points to close at 13,974.41 points level due to cautious stance opted by market participants. The KSE-30 index settled at 16,666.03 points level, down by 29.89 points.
Farhan Mahmood, an analyst at JS Global Capital, said that KSE-100 surged by 0.9 percent despite 50 bps increase in discount rates by the State Bank of Pakistan, which continued its tight monetary stance, and increased CRR by 100 bps.
Ambereen Jiwani, an analyst at Invest Capital & Securities, said that activity at KSE remained dull with volumes dipping to the lowest level since December 31 as investors awaited clarity on the monetary and political fronts. Sectors that gained most were Leather & Tanneries, Investment Banks, Refineries and Tobacco appreciating by 9.8 percent, 5.1 percent, 4.6 percent and 4.6 percent respectively. Sectors which lost most were Vanaspati & Allied and Cable & Electrical Goods recording a decline of 2.8 percent and 1.9 percent in value.