The influx of foreign funds stirred up investor's confidence at Karachi Stock Exchange (KSE) where the KSE-100 Index gained 391.61 points last week, closed at 23,428.93 level in comparison of 23,037.32 level of previous week. On the contrary, weekly average volume shrunk by 17.7 percent, volume stood at 216.37 million shares compared to 263.02 million shares a week earlier and market capitalisation also followed the same trend, low by 1.9 percent, closed at Rs 5.702 trillion from Rs 5.597 trillion.
Besides, average daily value witnessed bearish-trend, decreased by 18.3 percent, closed at Rs 9.86 billion compared to Rs 12.07 billion of previous trading-week.
When contacted, Zafar Moti, former Director KSE and Chairman ZMC Securities commented that overall performance of local bourse market was good as it was seen that investor's confidence was restored.
He said that two weeks back when market declined below the 22,000 level, every body was expecting more downfall but market proved wrong expectations of people and it restored not only its previous level of 22,500 but it made new record with touch almost 23,400 level. He said that inflow of foreign funds, profit returns, moving forward to resolve energy crisis and many other reasons made market as bullish throughout the week despite the profit taking by the investors.
According to JS Global's research, key news highlights during the week were: Pakistan now officially wants $7.3 billion from IMF: Reportedly, the IMF has given a positive response to Pakistan's request for increasing the size of their upcoming loan from $5.3 billion to $7.3 billion. IMF's board is scheduled to meet on September 4, 2013 to finalise Pakistan's request before which the government has to take IMF recommended measures such as raising the discount rate and the power tariff. Zero-rating on dairy products restored: The government restored the zero-rated General Sales Tax (GST) status on milk and dairy products. To recall, in Budget announcement on June 12, 2013, zero rating facility on dairy products had been substituted with sales tax exemption. Though, Finance Minister Ishaq Dar announced in his post budget speech that zero-rated facility would be restored on these products, the FBR issued SRO after a lapse of more than 3 weeks.
Phosacid contract price for 3Q2013 at $715/ton: Phosacid contract price for 3Q2013 has been finalised at $715/ton, down $35/ton from $750/ton previously. For FFBL, this will translate into DAP primary margin of $305/ton as against $290/ton in 2Q2013. During the week, FFBL outperformed the market by 10 percent where we have also upgraded the stock one notch to 'Buy' with a revised Target Price of Rs49.
Universal top performers during the week were Habib Bank, Fauji Fertiliser Bin Qasim, National Bank of Pakistan, Nishat (Chunian), Adamjee Insurance, Nishat Mills, Askari Bank, United Bank, MCB Bank and Pakistan Telecom Co.
According to day-by-day details of last week, KSE continued its upward trend even on the beginning of third week of new financial year, KSE-100 Index breached psychological level of 23,150 on the back of foreign buying. The Index gained 135.03 points, closed at an all-time-high-level of 23,172.35 in comparison of 23,037.32.
Bears succeeded to take charge at Karachi Shares Market on Tuesday due to profit taking by the investors. Resulting, the KSE-100 Index witnessed technical correction of 11.46 points, closed at 23,160.89 level in comparison of 23,172.35 level on a day earlier.
Selling in Oil and Fertiliser brought KSE-100 Index below 23,000-mark on Wednesday as bears continued their rule over floor for consecutive second day. The KSE-100 Index shed 166.17 points and closed at 22,994.72 level in comparison of 23,160.89 level on a day earlier.
After two continuous bearish sessions, the local bourse market witnessed recovery on Thursday and the KSE-100 Index climbed by 120.25 points on the back of earning announcements by the companies, closed at 23,114.97 level against 22,994.72 of previous day. Led by Banking and Cement sectors, KSE witnessed one more Bull-run session on Friday as KSE-100 Index gained 313.96 points, closed at historical high level of 23,428.93 against 23,114.97 level on a day earlier.