The share market during last week ending on July 15, 2007, kept up its uptrend setting new records for the third consecutive week as the KSE-100 index rose to fresh high level of 14,202.23 points with a net gain of 216.34 points.
The KSE-30 index also followed suit surging by 126.96 points to 17,162.45 points level. The ready market volume touched a 16-month high at 525 million shares. The ready market daily average increased to 429 million shares as compared to 396 million shares of previous week. The overall market capitalisation rose to Rs 4.203 trillion against Rs 4.113 trillion.
The start of the market was positive and the KSE-100 index crossed 14,000 points on Monday on the back of increased foreign interest in fertiliser and banking stocks. The index closed at 14,019.05 with a gain of 33.16 points. On Tuesday, the market started on a positive note and the KSE-100 index, after attaining 14,123.34 points intra-day high level on the back of fresh buying in OGDC and PPL, could not sustain due to law and order situation in Islamabad and closed down at 13,917.43 points, losing 101.62 points. The downward revision of rating of Pakistan by Standard and Poor's also hurt the market momentum.
On Wednesday, the improved law and order situation in Islamabad encouraged fresh buying and the KSE-100 index entered positive zone, recovering 49.97 points to close at 13,967.40 points.
On Thursday, the market witnessed across the board buying and the index closed at a new level of 14,131.28 points with a gain of 163.88 points on the back of fresh funds injection by both the foreign and the local investors.
On Friday, the market witnessed another bullish session and the KSE-100 index closed at yet another high of 14,202.23 points with a gain of 70.95 points. Jawad Haleem, analyst at Atlas Capital Markets, said that HBL's provisional listing at the local bourse, DAP prices shooting up by Rs 200 per bag, granting of licence to OGDC for exploration in Balochistan and laying of IPI gas pipeline by SNGPL were the few positive news which encouraged the investors to take fresh positions.
Also, cotton prices hitting peak level of Rs 3100 per maund, Standard & Poor's revising the foreign and local currency rating outlook on Pakistan from 'Positive' to 'Stable', inflation surging by 7.77 percent during FY07 and Supreme Court adjourning the hearing of PSO privatisation till the last week of August were some negative news which invited market men to offload their holdings on available margins.
Khurram Schehzad at Invest Capital & Securities Limited said that improving law and order situation in Islamabad, increasing oil prices in the international market, local car sales growth and HBL's listing were the positive news of the week. Among the top-3 performers, tier-3 sectors have topped the list again. Woolen sector has marked 11.8 percent return over last week.
Remaining two performers include Transport and Glass & Ceramics with 9.9 percent and 7.8 percent respectively. Conversely, Synthetic & Rayon led the top-3 losers' list marking -1.2 percent in return over the last week. Other sector looming in the red zone were Tobacco and Modarabas with -0.6 percent and -0.5 percent respectively. Among the blue chips, except Cement with -0.3 percent, Fertiliser took the lead with gaining 7.4 percent followed by Commercial Banks, E&P and OMCs which gained 2.5 percent, 1.7 percent and 0.5 percent respectively.
Umer Bin Ayaz at JS Global Capital Limited said that during the week energy sector, especially refineries, on the back of higher oil prices outperformed the market. Rumours regarding the announcement of new petroleum policy also supported the rally in E&P stocks. The capitalisation of refineries increased by 6 percent during the week.