IMF's financial support pushes KSE above 8,000-point level
Monday, 17 August 2009
KARACHI, Aug 16 : The Karachi stock market faced a bullish trading week as investor confidence was restored by the rise in financial support of International Monetary Fund (IMF) for Pakistan to $11.3 billion including $431 million for priority fiscal spending, analysts said Saturday,according to Daily Times.
The Karachi Stock Exchange (KSE) 100-share index gained 139 points or 1.8 per cent to close at 8,011.31 points as compared to 7,872.23 points of the previous week.
Other major factors for positive trend were stability in the rupee value and continuation of foreign buying at the market as they bought shares worth $30.9 million and sold shares worth $12.7 million. Resultantly, foreigners returned with net buying of $18.4 million.
The turnover was recorded at 174.39 million shares as compared with 139.43 million shares of the previous week, reflecting an increase of 25.09 per cent.
"The market started the week on a positive note with an increase of 2.7 per cent on Monday as the IMF board agreed to increase its lending by $3.2 billion to $11.32 billion," said an analyst at JS Research Atif Zafar. "Investors, however, remained cautious due to the monetary policy statement to be announced at the weekend and no positive earnings' surprise was witnessed during the week."
Moreover, cement sector's market capitalisation was down 5 per cent amid decline in cement prices.
The IMF board agreed to increase its lending by 700 per cent of Pakistan's quota after completing its second review of Pakistan's economic performance under $7.6 billion Stand-by Agreement programme with $1.3 billion tranche also released during the week. Additional loan can be used for budgetary financing as well, helping to mitigate it and balance of payment risk, he said.
This week three market heavyweights OGDC, PSO and HUBCO announced their fiscal year 2009 results. Though PSO and HUBCO posted earnings close to expectations, OGDC on the other hand disappointed the investors with below than expected earning per share.
"Investors are concerned over the correction in international oil prices, fall in local cement prices, decline in oil refineries sales by over 14 per cent on year and no payout announcement by PSO," said analyst at Shahzad Chamdia Sec Ahsan Mehanti.
ISLAMABAD: The Islamabad stock market witnessed a positive trading week, analysts said on Saturday. The Islamabad Stock Exchange (ISE) 10-share index increased by 46.04 points to close at 1,896.66 points as against the previous week's close of 1,850.62 points.
The index remained negative for two days on August 11 and 13 while it remained positive for two days, August 10 and 13. The ISE remained closed on August 14, as it was the Independence Day Pakistan.
Total volume of transactions stood at 4.910 million shares as against 4.092 million shares last week, showing a net increase of 0.818 million shares or 20 per cent. The minimum transaction in the outgoing week was recorded on August 12 when the market reached 1.030 million shares and the index increased by 2.81 points to close at 1,927 points from the previous level of 1,924.19 points.
The Karachi Stock Exchange (KSE) 100-share index gained 139 points or 1.8 per cent to close at 8,011.31 points as compared to 7,872.23 points of the previous week.
Other major factors for positive trend were stability in the rupee value and continuation of foreign buying at the market as they bought shares worth $30.9 million and sold shares worth $12.7 million. Resultantly, foreigners returned with net buying of $18.4 million.
The turnover was recorded at 174.39 million shares as compared with 139.43 million shares of the previous week, reflecting an increase of 25.09 per cent.
"The market started the week on a positive note with an increase of 2.7 per cent on Monday as the IMF board agreed to increase its lending by $3.2 billion to $11.32 billion," said an analyst at JS Research Atif Zafar. "Investors, however, remained cautious due to the monetary policy statement to be announced at the weekend and no positive earnings' surprise was witnessed during the week."
Moreover, cement sector's market capitalisation was down 5 per cent amid decline in cement prices.
The IMF board agreed to increase its lending by 700 per cent of Pakistan's quota after completing its second review of Pakistan's economic performance under $7.6 billion Stand-by Agreement programme with $1.3 billion tranche also released during the week. Additional loan can be used for budgetary financing as well, helping to mitigate it and balance of payment risk, he said.
This week three market heavyweights OGDC, PSO and HUBCO announced their fiscal year 2009 results. Though PSO and HUBCO posted earnings close to expectations, OGDC on the other hand disappointed the investors with below than expected earning per share.
"Investors are concerned over the correction in international oil prices, fall in local cement prices, decline in oil refineries sales by over 14 per cent on year and no payout announcement by PSO," said analyst at Shahzad Chamdia Sec Ahsan Mehanti.
ISLAMABAD: The Islamabad stock market witnessed a positive trading week, analysts said on Saturday. The Islamabad Stock Exchange (ISE) 10-share index increased by 46.04 points to close at 1,896.66 points as against the previous week's close of 1,850.62 points.
The index remained negative for two days on August 11 and 13 while it remained positive for two days, August 10 and 13. The ISE remained closed on August 14, as it was the Independence Day Pakistan.
Total volume of transactions stood at 4.910 million shares as against 4.092 million shares last week, showing a net increase of 0.818 million shares or 20 per cent. The minimum transaction in the outgoing week was recorded on August 12 when the market reached 1.030 million shares and the index increased by 2.81 points to close at 1,927 points from the previous level of 1,924.19 points.