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LOCAL MARKETS WEEKLY REVIEW: Bulls outpace bears at KSE as index gains 350.24 points

Bulls outpaced bears at the Karachi stock market during the week as investments by institutions and retail investors helped the market recover while the volume touched a four-month high level, analysts said on Saturday.

Falling political condition with Ajmal Kasab identified as a Pakistani national and the dismissal of the National Security adviser by the PM failed to dent the confidence of investors.

The Karachi Stock Exchange (KSE) 100-share index gained 350.24 points to close at 6,143.81 points as compared to 5,793.57 points of the previous week.

Analyst at Atlas Capital Market said volumes at the KSE gained momentum, demonstrating increased investor interest in the market at current levels. On the positive side the data released by SBP showed a decline of Rs 98 billion under the head of borrowing for budgetary support to Rs 313 billion on December 20 thus making the goal of zero net borrowing by IMF more achievable.

The ease off witnessed in the inflationary pressure depicted by a 58 bps decrease in the SPI, along with Shaukat Tareen’s statement of increase in interest rate being unlikely given the decreasing trend of inflation, lent support to the market.

The turnover was recorded at 173.6 million shares or $52.6 million as compared with 108.99 million shares or $20.3 million last week, showing a handsome increase of 59.3 percent.

Volumes showed substantial improvement over the week as strong activity was witnessed in top tier stocks as well.

Foreigners were net sellers during the week as they bought shares worth $16.7 million and sold $41.6 million, resulting in net selling of $24.9 million.

Analysts said December result announcements are set to continue bullish activity.

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