02-22-2009, 09:05 AM
KARACHI: Bulls continued to dominate the trading sessions at the Karachi stock market during the week as the announcement of results of major board stocks spurred buying euphoria, analysts said on Saturday.
Gas discovery by OGDC and expectations of settlement of government debt coupled with increase in furnace oil prices by OMC also played a catalyst role supporting the market.
The Karachi Stock Exchange (KSE) 100-share index gained 343.19 points or 6.1 percent to close at 5,969.09 points as compared with 5,625.90 points of the previous week. The average turnover in the ready market was recorded at 203 million shares as compared to previous week’s 144 million shares, reflecting an increase of 41 percent.
Analysts said the index crossed the psychological level of 6,000 points on Thursday, after over a month.
Though PSO posted LPS of Rs 58.6, the announcement of 50 percent dividend exceeded the expectations. Moreover, MCB’s result also provided much needed support to the market. ICI’s result also affirmed the commendable performance of these companies.
Moreover, the relaxation given by the Securities and Exchange Commission of Pakistan in its notice last Friday, with reference to impairment losses, continued to lend support to the market even with the turn of the new week.
Further positive sentiment was injected due to the announcement by MSCI Barra, which stated that they would start consultations with the investment community on a proposal to include the MSCI Pakistan Index in the MSCI Frontier Markets Index.
Brokers said the MSCI Barra announced on Wednesday that it would begin consultations with the investment community on a proposal to include the MSCI Pakistan Index in the MSCI Frontier Markets Index at the end of May 2009 to coincide with the May Semi-Annual Index Review. This was viewed as a positive development, helping market post 2.4 percent increase on Thursday.
Selling from foreigners continued during the week as they bought shares worth $7.8 million and sold $19.4 million, resulting in net selling of $11.6 million. Cumulative net selling post lifting of the floor has now reached $201 million. Moreover, foreigners who held shares worth $1.3 billion at the beginning of 2009, now hold Pakistan equities estimated around $1.1 billion on account of eroding share values and offloading of shares.
After strong showing by MCB, HBL and ICI during the week, focus now turns towards the energy sector. HUBCO, APL, OGDC, POL, SSGC and SNGPL are among the major announcements in the coming week. Another analyst said investors remained bullish as NIT State Enterprise Fund continued to support the market, peace talks in Swat, World Bank statement of improvements in Pakistan’s macro-economic balances raised expectations of market’s stability in both retail and institutional investors. staff report
http://www.dailytimes.com.pk/default.asp...009_pg5_15
Gas discovery by OGDC and expectations of settlement of government debt coupled with increase in furnace oil prices by OMC also played a catalyst role supporting the market.
The Karachi Stock Exchange (KSE) 100-share index gained 343.19 points or 6.1 percent to close at 5,969.09 points as compared with 5,625.90 points of the previous week. The average turnover in the ready market was recorded at 203 million shares as compared to previous week’s 144 million shares, reflecting an increase of 41 percent.
Analysts said the index crossed the psychological level of 6,000 points on Thursday, after over a month.
Though PSO posted LPS of Rs 58.6, the announcement of 50 percent dividend exceeded the expectations. Moreover, MCB’s result also provided much needed support to the market. ICI’s result also affirmed the commendable performance of these companies.
Moreover, the relaxation given by the Securities and Exchange Commission of Pakistan in its notice last Friday, with reference to impairment losses, continued to lend support to the market even with the turn of the new week.
Further positive sentiment was injected due to the announcement by MSCI Barra, which stated that they would start consultations with the investment community on a proposal to include the MSCI Pakistan Index in the MSCI Frontier Markets Index.
Brokers said the MSCI Barra announced on Wednesday that it would begin consultations with the investment community on a proposal to include the MSCI Pakistan Index in the MSCI Frontier Markets Index at the end of May 2009 to coincide with the May Semi-Annual Index Review. This was viewed as a positive development, helping market post 2.4 percent increase on Thursday.
Selling from foreigners continued during the week as they bought shares worth $7.8 million and sold $19.4 million, resulting in net selling of $11.6 million. Cumulative net selling post lifting of the floor has now reached $201 million. Moreover, foreigners who held shares worth $1.3 billion at the beginning of 2009, now hold Pakistan equities estimated around $1.1 billion on account of eroding share values and offloading of shares.
After strong showing by MCB, HBL and ICI during the week, focus now turns towards the energy sector. HUBCO, APL, OGDC, POL, SSGC and SNGPL are among the major announcements in the coming week. Another analyst said investors remained bullish as NIT State Enterprise Fund continued to support the market, peace talks in Swat, World Bank statement of improvements in Pakistan’s macro-economic balances raised expectations of market’s stability in both retail and institutional investors. staff report
http://www.dailytimes.com.pk/default.asp...009_pg5_15