Lack of triggers kept Karachi Stock Exchange (KSE) relatively subdued throughout the week as investors preferred to remain on the sidelines due to many political and economical issues. The KSE-100 index closed at highest level of 18,043.31 after gaining 80.19 points while average volumes plunged by 19 percent WoW to 151 million shares.
Commenting on the market performance, Furqan Ayub, technical analyst at JS Global said that investors preferred to remain on the sidelines throughout the week due to rumours related to a possible breakdown in cement prices, concerns on weakening PKR due to IMF payments and the rift between LDI operators and Competition Commission of Pakistan (CCP).
"However, on Friday, the market witnessed a snap rally as rumours of breakdown in the cement quota subsided and Pakistan successfully paid its 11th instalment (worth $143.7m) to the IMF without any major alarms (PKR depreciating by only 0.2 percent (WoW)," he said.
Resultantly, he added that KSE-100 index gained 0.2 percent WoW to close at 18,043 level, while average volumes plunged by 19 percent WoW to 151m shares. Other key news highlights during the week were selection of former Justice Mir Hazar Khan Khoso as caretaker Prime Minister, announcement of COD of Laraib Energy (subsidiary of HUBC) and Supreme Court redirecting CCP to complete ICH proceedings, he concluded.
Hasnain Asghar Ali, from Escorts Capital said Karachi share market witnessed lacklustre activities last week gaining just 80 points during the week with low participation of the investors in the absence of positive news. He said investors moved to defensive stocks such as HUBC and FFC while some buying was also seen in oil stocks over news of increased production from Tal Block.
"Telecom stocks were mainly under pressure following the ongoing case on international calling rates, however the news regarding buy-back by the management of Wateen Telecom invited some buying interest in the scrip on the last trading day," he added.
Weekly average volume witnessed a decrease of 18.7 percent to 151.25 million shares compared to 185.98 million a week earlier while market capitalisation stayed up 1.5 percent to Rs4.446 trillion from Rs4.383 trillion.
Average daily value during last week remained under immense pressure falling by 28.9 percent to close at Rs4.25 billion compared to Rs 5.97 billion recorded during previous trading week. According to details of sessions of last week, KSE on Monday closed lower with thin trading activity and the benchmark-100 index fell slightly by 1.21 points to close at 17,961.91 points from 17,963.12 points.
On Tuesday, KSE witnessed one more bear-run session as investors preferred profit-taking. The benchmark-100 share index lost 89.76 points to close at 17,872.15 points against 17,961.91 points.
After two dull sessions, bulls pushed Karachi Share Market towards recovery mode and the local bourse witnessed positive trend on Wednesday. The benchmark-100 share index gained 53.99 points or 0.30 percent to close at 17,926.14 points against 17,872.15 points.
Bulls maintained their grip at Karachi bourse on second consecutive day (Thursday) as the benchmark-100 share index gained 21.62 points or 0.12 percent to close at 17,947.76 points against 17,926.14 points. The KSE-100 share index breached psychological level of 18,000 on Friday. The local bourse witnessed bull-run on the last day of the week. The index gained 95.55 points or 0.53 percent to close at 18,043.31 points against 17,947.76 points.
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