Stocks manage 130.69 points gain

Lower than expected PIB cut-off yields and declining CPI inflation to single digit created a wave of optimism among the investors during the week ended on November 14, 2009, and KSE index rose by 130.69 points to close at 9,067.17 points.
The prevailing law and order and political situation, however, remained major concern for investors, which forced them to remain on sidelines restricting average daily volume to 131.606 million shares as compared to previous week's 131.633 million shares.
Market capitalisation increased by Rs 35 billion to Rs 2.623 trillion. Foreign investors were net seller with an outflow of $7.5 million. It was a four-day week, as the market remained closed on Monday (November 9) on account of Allama Iqbal Day.
The market on Tuesday opened under pressure due to law and order and political situation and the index declined by 174.08 points to close at 8,762.40 points with a volume of 77.969 million shares.
However, on Wednesday, some healthy buying on the back of reviving investors' confidence supported the index to recover 153.78 points to close at 8,916.18 points with 140.415 million shares trading.
On Thursday, the index gained 8.06 points to close at 8,924.24 points with 154.513 million shares. On Friday, healthy buying was witnessed in the second half of the session and the index surged by 142.93 points to close at 9,067.17 points with 153.529 million shares.
Nauman Khan at Invest Capital Securities said that the possible ramification of the government abandonment of NRO coupled with heightened security concerns continued to downplay the investors' confidence and the KSE index remained under pressure in the early part of the week. However, the positive development of CPI inflation for October, coming down to a single digit of 8.87 percent after 22 months, along with lower than expected PIB cut-off yields, created a wave of optimism amongst the investors in the latter part of the week. Further support was provided by the expectation of a favourable outcome from the meeting with the IMF and improved trade deficit figures for the four months of FY10. This positivity helped the index to regain the lost momentum, closing the week slightly (+67pts) above the psychological level of 9,000pts.
Average volumes remained almost stagnant to 131.6 million shares owing to a low turnover of only 78 million shares on the first trading day of the week, he added.