Bullish trend was witnessed at the share market during the week ended on July 30, 2010 on the back of both local and foreign investors' interest. As a result, the KSE-100 index managed to close above 10,500 points level, registering a gain of 222.98 points, and closing at 10,519.02 points.
Trading improved slightly and the average daily volume at ready counter increased to 79.80 million shares as compared to previous week's 78.97 million shares.
Market capitalisation increased by Rs 59 billion to Rs 2.948 trillion. Foreign investors remained net buyers of shares worth $12.664 million.
On Monday, the market witnessed mixed trend but the index managed to close in positive at 10,297.68 points, with a meagre gain of 1.64 points with very low volume of 40.209 million shares.
On Tuesday, the market witnessed healthy trading and the index registered a gain of 89.14 points to close at 10,386.82 points with improved volume of 71.973 million shares. On Wednesday, the index increased by 49.47 points and closed at 10,436.29 points with 102.554 million shares.
On Thursday, the index gained 2.37 points and closed at 10,438.66 points with 70.326 million shares.
On Friday, the market witnessed another bullish session and the index surged by 80.36 points and closed the week at 10,519.02 points with 113.975 million shares.
Nauman Khan, analyst at Invest Capital and Securities, said that with result season in full swing the market participants reacted positively to earning growth in all major blue chip results. The positive momentum was further augmented by sector-specific news flow as improved banking spreads injected optimism in banking sector while surge in oil production from Manazalai and Makori fields reflected positively on the E&P sector profitability.
The trend trickled down to across-the-board buying, while negative news flow, with regard to decline in fertiliser offtake, was offset by encouraging corporate results of the sector.
On the flip side, he said, absence of margin trading product continued to bear heavily on market volumes as average daily turnover continued to remain at subdued levels.
Rabia Tariq, at JS Global Capital, said that the result season began in full swing during the week with key fertiliser companies-Engro, FFBL and FFC among many others-announced their quarterly results. The market responded positively to these announcements and the bourse managed to close above 10,500 points level.
The key fertiliser companies were among the few blue chip companies which announced their 1H2010 results during the week. High urea and DAP prices led to better than expected earnings for the fertiliser sector. Following result announcement, investor interest was witnessed in FFC and Engro, which managed to close up 3.5 percent and 1.5 percent respectively.
Further, the lapse of 15 percent regulatory duty on export of yarn led to improved activity in the textile sector, and it outperformed the market by 1.4 percent. PSO also outperformed the market by 2.2 percent on the back of better result expectations and rumour regarding receipt of Rs 15 billion from the Ministry of Finance on account of circular debt issue.