Index gains 215.63 points

Investors' interest on attractive levels invited fresh buying at the Karachi share market during the week anded on September 11, 2011 and the KSE-100 index increased by 215.63 points to close at 11,286.21 points. Trading also improved and the average daily volume at ready counter increased by 82.9 percent to 82.21 million shares as compared to previous week's 44.94 million shares.
Market capitalisation increased by Rs 58 billion to Rs 2.992 trillion. In spite of rising intensity on the political front, foreigners remained net buyers of $1.7 million during the week. On Monday, the market opened on a positive note, and the index registered an increase of 91.81 points to close at 11,162.39 points with volume of 74.192 million shares.
On Tuesday, the index surged by 156.76 points and closed at 11,319.15 points with 87.041 million shares.
On Wednesday, the index gained 10.62 points and closed at 11,329.77 points, with 86.234 million shares. On Thursday, the index increased by 18.65 points to close at 11,348.42 points with 90.931 million shares.
On Friday, although the market remained bullish in the first half and the index hit 11,396.29 points intra-day high, profit taking in second half forced the index into negative zone which closed at 11,286.21 points, down 62.21 points, with 72.657 million shares. Yawar uz Zaman, an analyst at InvestCap said as the result season is at its peak, investors are taking more interest in the scrips which are providing solid upward potential, as the volume leader National Bank and LOTPTA appreciated 20 percent and 8 percent during the week.
Furqan Ayub at JS Global Capital said that the local bourse remained positive despite increasing apprehensions on the global economic outlook. The low correlation with global economy, attractive valuations and high dividend yields kept the market resilient as the KSE-100 Index increased by 1.9 percent during the week.
Another bright spot in the market was the improvement in average volume, which stood at 82 million shares. Chemicals and banks led the way as they outperformed the KSE-100 Index by 3.6 percent and 2.7 percent respectively, while oil and gas sector under-performed the Index by 0.7 percent. Among the individual stocks NBP outperformed the KSE 100-Index by 18 percent as attractive dividend yield lured investors.
Another banking giant, MCB, also remained active and outperformed the KSE-100 Index by 3 percent on the back of news that the bank has initiated the process of getting its shares enrolled for level 1 ADR. Within the chemical sector, Engro recovered by 13 percent during the week due to the reduction in the turnaround period for Qadirpur gas field.