The Karachi share market witnessed a bullish trend during the outgoing week ended on July 06, 2012 on the back of breakthrough in Pak-US deadlock, better than expected inflation number and lower oil prices in the international market, analysts said.
The benchmark KSE-100 index registered a healthy increase of 509 points, up 3.7 percent on week-on-week basis to close at 14,310.18 points.
Trading activities also improved significantly as the average daily volumes at ready counter increased by 32.7 percent to 91.97 million shares as compared to previous week's average of 69.32 million shares.
Total market capitalisation increased by Rs 126 billion to Rs 3.644 trillion. The foreign investors turned net buyers of shares worth $9.395 million.
The market opened on strong positive note and the index surged by 341.51 points to close at 14,142.92 points with total volume of 106.453 million shares on Monday.
This trend continued on Tuesday and the index gained another 57.87 points to close at 14,200.79 points with 119.364 million shares.
The index on Wednesday declined by 22.69 points due to profit taking in late hours and closed at 14,178.10 points with 100.826 million shares.
The index lost another 7.19 points to close at 14,170.91 points with extremely thin volumes of 38.844 million shares on Thursday.
The market witnessed another bullish session on Friday and the index increased by 139.27 points to close the week at 14,310.18 points with 94.336 million shares.
Furqan Ayub, an analyst at JS Global Capital said that the breakthrough in US-Pak deadlock, better than expected inflation numbers, robust cement dispatches and lower international oil prices provided the impetus to the local bourse.
The US Secretary of State Hillary Clinton issued a statement which was accepted as an apology by Pakistan for the Salala tragedy. Consequently, the Defence Committee of the Cabinet decided to reopened the Nato supply routes. This 'newly found' understanding between the two countries is also expected to lead to the release of the Coalition Support Fund (CSF), he said.
According to Pakistan Federal Bureau of Statistics, Consumer Price Index (CPI) clocked in at 11.3 percent for the month of June 2012 as against 12.3 percent last month. The cumulative CPI figure for FY12 stood at 11 percent against the projected target of 11-12 percent.
Higher than expected cement numbers in June 2012 triggered a rally in DGKC, as the stock outperformed the market by 4.8 percent. The international oil prices also stirred interest in the E&P sector leading to an out performance of OGDC and POL by 2.0 percent and 0.3 percent, respectively, he added
An analyst at AKD Securities said that the market activity was dominated by DGKC, JSCL, FFC, PTC and LUCK. Top gainers included INDU (10.4 percent), DGKC (8.5 percent), MCB (8.0 percent) and NML (7.1 percent) while ULEVER (3.7 percent), SSGC (2.6 percent) and KAPCO (1.2 percent) were the major decliners during the outgoing week.
He said that overall strength in market was witnessed on the back of improvement in US-PAK relationship following the dispute resolution of Nato supply routes, below line CPI reading for Jun 2012, overall improvement in fertiliser sector sentiment following no increase in GIDC for feedstock gas against earlier expectation of a Pak Rs 103/mmbtu hike, reduction in fuel stock cost by Pak Rs 35/mmbtu and record high urea offtake in June 2012 and sequential increase in cement offtake. .
Comments
Comments are closed.