Index crosses 8,000 points mark

The KSE-100 index crossed 8,000 points mark during the wek ended on August 15, 2009 and closed at 8,011.31 points with a gain of 139.08 points, or 1.8 percent. The approval by IMF to increase its lending for Pakistan by $3.2 billion to $11.32 billion invited fresh buying at the stock market, analysts said.
However, profit taking on last trading session and a decline of 47.15 points minimised weekly gains, they added. Trading improved and average daily volume at ready counter increased by 45 percent to 194.41 million shares from previous week's 134.53 million shares.
Market capitalisation increased by Rs 38 billion to Rs 2.361 trillion. Foreign portfolio investment increased by $18.4 million. On Monday, the market witnessed bullish trend and the index surged by 209.83 points to close at 8.082.06 points with a volume of 184.343 million shares.
However, on Tuesday, the index declined by 37.56 points to close at 8,044.50 points, with 200.809 million shares mainly due to profit taming.
On Wednesday, the market turned positive and the index recovered 13.96 points to close at 8,058.46 points, with 218.108 million shares. On Thursday, the market witnessed profit taking and the index lost 47.15 points to close at 8,011.31 points level with 174.394 million shares. The market remained closed on Friday on account of Independent Day.
Atif Zafar at JS Global Capital said that the week started on a positive note as the IMF board agreed to increase its lending by $3.2 billion to $11.32 billion. However, investors remained cautious due to the monetary policy statement which was to be announced at the weekend and no positive earnings surprisewas witnessed during the week. Moreover, cement sector's market capitalisation was down 5 percent amid decline in cement prices. He said three market heavyweights, OGDC, PSO and Hubco announced their full year FY09 results. Though PSO and Hubco posted earnings close to expectation, OGDC disappointed the investors with below than expected EPS.
Muniba Saeed at Invest Capital Securities said that the investors' interest at the KSE remained highly stimulated as average daily volume increased by a massive 45 percent. The index remained fairly active, increasing by 210 points on the first trading day on the back of approval of the forex inflow by the IMF. However, the KSE-100 index traded in a band of 266 points during the week, increasing by a minimal 1.8 percent (139 points).
The week remained highly eventful with IMF releasing $1.2 billion along with the announcement of RBS acquisition by MCB. Further positivity was induced as the trade deficit for Jul-09 showed a significant (31 percent) decline to reach $1.15 billion. Also, the announcement of the much awaited textile policy, addressing key issues faced by the sector, provided sanguine hope to the ailing sector. However, on the negative front, the decline in cement prices initiated a downward march in the cement scrips. Also, amid a rise observed in the last T- bills cut-off indicating no significant policy rate cut in the upcoming monetary policy statement, the market remained under pressure on the last day.