Positive developments push KSE points up
Monday, 1 June 2009
KARACHI, May 31 : Lifting of election ban on Sharif brothers and sharp cuts in Pakistan Investment Bond (PIB) yields kept the Karachi stock market in the greens during the week, analysts said Saturday, according to Daily Times.
The market remained buoyant despite Lahore and Peshawar terror attacks, they added.
The Karachi Stock Exchange (KSE) 100-share index gained 130.37 points or 2 per cent to close at 7,276.61 points as compared to 7,146.24 points of the previous week.
Analysts said that the limited fall of local petroleum prices attracted the investors towards oil marketing companies, while gas-line deals with Iran were also taken positively for gas marketing companies.
The turnover was recorded at 188.83 million shares as compared with 111.46 million shares of the previous week, reflecting an increase of 69.41 per cent during the week.
"The market welcomed the Supreme Court's decision regarding lifting of election ban on Sharif brothers," said analyst at JS Research Bilal Qamar. "The bullish sentiments in the market were soon hit by the terror attacks in Lahore, but despite these terrorist activities the market remained strong."
The other major development during the outgoing week was the PIB auction. Following the decline in PIB yields, renewed interest was observed in the leveraged-cum long-term growth stocks in the fertilizer and cement sector, which were up 1.5 per cent and 3.2 per cent, respectively. Moreover, due to sharp increase in oil prices, E&P sector was up by 3.7 per cent. With the market remaining positive throughout the week, average daily volumes stood at 151 million shares or $92 million versus 116 million shares or $57 million last week.
After being net buyers of $1.6 million in the previous week, foreigners turned net sellers once again. Foreigners bought shares worth $28 million, while $32.1 million worth of shares were offloaded, resulting in the net selling of $4.1 million.
"Bullish activity remained in oil sector as international oil prices crossed $63 per barrel," said analyst at Shahzad Chamdia Sec Ahsan Mehanti. "Expectation of record PSDP allocation of over Rs 600 billion in the federal budget 2009-10 invited investment in cement sector while Sharif brothers eligibility for elections, gains in international equity markets and rise in oil prices played a catalyst role for positive activity in the market."
Meanwhile: The Lahore Stock Exchange (LSE) witnessed a positive trading week, analysts said on Saturday. The LSE 25-share index closed at 2,160.60 against its previous week's closing at 2,125.76 points, reflecting an increase of 34.84 points or 1.64 per cent. The volume fell to 16.87 million shares as compared to previous week's 22.01 million shares. Petroleum and banking stocks remained the centre of attraction. Despite terrorist attack at Lahore, the market remained in green zone most of the days.
Meanwhile: Despite the ongoing military operation in Malakand and Swat, investors remained active in the ring, analysts said on Saturday. The Islamabad Stock Exchange (ISE) 10-share index increased by 43.81 points to close at 1,695 points as against the previous week's close of 1651.19 points.
The index remained negative for one day (May 29) and remained positive for rest of the four working days. Total volume of transactions stood at 5.737 million shares as against 4.918 million shares last week, showing a net increase of 0.819 million shares or 16.65 per cent.
The minimum transaction during the outgoing week was recorded on May 27 when the market reached 0.989 million shares and the index increased by 20.26 points to close at 1,694.11 points from the previous level of 1,673.85 points.
The maximum transaction during the week was 1.310 million shares while last week it was 1.140 million shares. The maximum decrease in share price of a company was observed in Siemens Engineering, the price of which decreased by Rs 44 on May 28 when the index increased by 38.19 points.
The market remained buoyant despite Lahore and Peshawar terror attacks, they added.
The Karachi Stock Exchange (KSE) 100-share index gained 130.37 points or 2 per cent to close at 7,276.61 points as compared to 7,146.24 points of the previous week.
Analysts said that the limited fall of local petroleum prices attracted the investors towards oil marketing companies, while gas-line deals with Iran were also taken positively for gas marketing companies.
The turnover was recorded at 188.83 million shares as compared with 111.46 million shares of the previous week, reflecting an increase of 69.41 per cent during the week.
"The market welcomed the Supreme Court's decision regarding lifting of election ban on Sharif brothers," said analyst at JS Research Bilal Qamar. "The bullish sentiments in the market were soon hit by the terror attacks in Lahore, but despite these terrorist activities the market remained strong."
The other major development during the outgoing week was the PIB auction. Following the decline in PIB yields, renewed interest was observed in the leveraged-cum long-term growth stocks in the fertilizer and cement sector, which were up 1.5 per cent and 3.2 per cent, respectively. Moreover, due to sharp increase in oil prices, E&P sector was up by 3.7 per cent. With the market remaining positive throughout the week, average daily volumes stood at 151 million shares or $92 million versus 116 million shares or $57 million last week.
After being net buyers of $1.6 million in the previous week, foreigners turned net sellers once again. Foreigners bought shares worth $28 million, while $32.1 million worth of shares were offloaded, resulting in the net selling of $4.1 million.
"Bullish activity remained in oil sector as international oil prices crossed $63 per barrel," said analyst at Shahzad Chamdia Sec Ahsan Mehanti. "Expectation of record PSDP allocation of over Rs 600 billion in the federal budget 2009-10 invited investment in cement sector while Sharif brothers eligibility for elections, gains in international equity markets and rise in oil prices played a catalyst role for positive activity in the market."
Meanwhile: The Lahore Stock Exchange (LSE) witnessed a positive trading week, analysts said on Saturday. The LSE 25-share index closed at 2,160.60 against its previous week's closing at 2,125.76 points, reflecting an increase of 34.84 points or 1.64 per cent. The volume fell to 16.87 million shares as compared to previous week's 22.01 million shares. Petroleum and banking stocks remained the centre of attraction. Despite terrorist attack at Lahore, the market remained in green zone most of the days.
Meanwhile: Despite the ongoing military operation in Malakand and Swat, investors remained active in the ring, analysts said on Saturday. The Islamabad Stock Exchange (ISE) 10-share index increased by 43.81 points to close at 1,695 points as against the previous week's close of 1651.19 points.
The index remained negative for one day (May 29) and remained positive for rest of the four working days. Total volume of transactions stood at 5.737 million shares as against 4.918 million shares last week, showing a net increase of 0.819 million shares or 16.65 per cent.
The minimum transaction during the outgoing week was recorded on May 27 when the market reached 0.989 million shares and the index increased by 20.26 points to close at 1,694.11 points from the previous level of 1,673.85 points.
The maximum transaction during the week was 1.310 million shares while last week it was 1.140 million shares. The maximum decrease in share price of a company was observed in Siemens Engineering, the price of which decreased by Rs 44 on May 28 when the index increased by 38.19 points.