International oil prices drove local equity market during last week and helped bulls regain some ground against the long-prevailing bears. The KSE-100 index grew 1.1 percent to 31,298 points during the week that ended on January 29. "The index remained sensitive to the global crude prices as the market moved parallel to the commodity prices," said Yawar Uz Zaman of Shajar Capital in a research note. The ongoing results announcement session also offered to the market the long-awaited trigger to surge.
Daily trading turnover averaged on 117 million shares, down 21 percent over preceding week.
Ahsan Arshad of Spectrum Research observed that the week under review saw oil and gas sectors in the limelight as US West Texas Intermediate crude prices rebounded 10 percent to $33.61 a barrel. The value of stocks traded also bore 13 percent contraction to stand at Rs 7 billion or $66.6 million in US currency terms.
Sector-wise, major gainers came from tobacco, construction and materials and oil and gas which, respectively, rose 11.5, 4.2 and 3.9 percent. The losers were from media, pharma and biotech sectors with 3.4 and 2.7 percent losses.
Analysts said volumes remained subdued for investors' cautiousness ahead of monetary policy announcement which the State Bank on Saturday kept unchanged at 6.0 percent.
With cements attracting $6.8 million net buying, foreign investors sold portfolios worth $7 million during last week. Major selling was seen in banks and electricity sector with net selling of $6.4 million and $2 million, said a Topline Research note.
"Foreign participation still attains investors' devotion as the track of foreign flows still remains in jeopardy," Yawar said.
Forecasting status quo in the discount rate, researchers at Arif Habib Limited said a three-rupee cut in electricity tariff by the ECC for industries shall bring back some positivity to the market, especially for cements and textiles.
"On the whole the market is expected to remain lackluster and follow previous weeks' course," said Ahsan of Spectrum Research.