Bullish trend witnessed

Sentiments at the Karachi share market remained positive during the last week, ending on November 7, 2014 and the benchmark KSE-100 index gained some 553 points (Week on Week) with an improved trading activity. During the last week, three trading sessions were held as the market was closed on Monday and Tuesday on account of Ashura holidays announced by the federal government and Wednesday was the first trading day of the week.
At the end of the week, the KSE-100 index closed at an all-time high level of 30,930 points compared to 30,377 points a week earlier. While, average daily value increased by 34 per cent (WoW) to Rs 13.48 billion up from Rs 10.08 billion.
On the last trading day of the week, during the intraday trading, the benchmark index also touched 30,999.18 points level but could not cross the level of 31,000 points.
Analysts at the JS said that the Karachi Stock Exchange extended its bullish momentum, with the benchmark KSE-100 gaining 1.8 per cent WoW to close at an all-time high level of 30,930.
They said that the trading activity also stepped up during the week with average trading volumes rising by 55 per cent WoW. The positive momentum at the bourse was driven by expectations of a discount rate cut in the upcoming monetary policy amid lower-than-expected October-2014 CPI reading of 5.8 per cent YoY.
In addition, potential boost to Pakistan forex reserves through the government's divestment in the OGDC and successful review of Pakistan by the IMF also supported the market, they added.
Cement sector was amongst the key gainers during the week on expectations of a potential demand up-tick from the construction of Diamer-Bhahsa Dam, while the auto sector yet again performed admirably due to sharp weakening of Japanese Yen vis-à-vis US Dollar. On the contrary, Oil and Gas sector was a key laggard due to the declining trend in international oil prices.
The Federal Board of Revenue (FBR) provisionally collecting 17 per cent YoY higher tax revenues in 4MFY15, 10.2% YoY higher cotton arrivals in YTD FY15, and floor price for the OGDC GDS being fixed at Rs216 were other major highlights of the week.
Federal Minister for Finance, Ishaq Dar on Saturday also announced that dialogues with the IMF have been successfully completed and the Fund is likely to approve disbursement of $1.1 billion tranche of Extended Fund Facility in next board meeting. According to analysts, this will put positive impact on the market.
The federal government on Saturday suddenly announced the suspension of the OGDCL privatisation. According to reports, the privatisation process has been suspended due to lower oil prices in the world market and now it will be conducted latter.
Daily volume continued to post an upward trend and surged by 55 per cent (WoW) during the last week. Average daily volume surged to 267 million shares during the last week as against 173 million shares in the previous week. During the week under the review, the market capitalisation increased by Rs 124 billion to reach Rs 7.157 trillion up from Rs 7.034 trillion. Average daily value during the last week in term of dollar reached $131.39 million, up 34 per cent, compared to $97.75 million in the previous week.
The Karachi share market opened the week on a bullish note and the benchmark index KSE-100 gained some 217 points to close at 30,593 points on Wednesday. The Karachi stock market saw another bullish session on Thursday and the benchmark KSE 100-index closed at a new high level of 30,664 points, up by 70 points. The equity market on Friday made strong advances and gained another 266 points to move into uncharted territory of 30,930 points compared to 30,664 points on Thursday.