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 on Saturday.
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 percent 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 percent 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, as yields fell in the range of 60bps. 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 percent and 3.2 percent, respectively. Moreover, due to sharp increase in oil prices, E&P sector was up by 3.7 percent. 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.”
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 percent 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 percent 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, as yields fell in the range of 60bps. 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 percent and 3.2 percent, respectively. Moreover, due to sharp increase in oil prices, E&P sector was up by 3.7 percent. 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.”
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