KARACHI: Bull reigned the Karachi stock market during the week on support from buying activities as Securities and Exchange Commission of Pakistan (SECP) approved the re-launching of deliverable futures contract in 18 scrips.
The Karachi Stock Exchange (KSE) 100-share index gained 19.39 points or 0.2 percent to close at 7,783.40 points as compared to 7,764.01 points of the previous week.
Other major factors that supported the market included approval of dividends for Letter of Comfort (LoC) unit holders of National Investment Trust (NIT), rise in international oil prices and renewed interest of foreign investors. The turnover was recorded at 193.04 million shares as compared with 183.81 million shares of the previous week, reflecting an increase of 5.02 percent.
“The SECP’s approval of 18 future securities and monetary policy statement prospects elated investors’ mood at the start of the week,” said analyst at JS Research Mustafa Bilwani. “SBP’s announcement of a delay in the monetary policy till August 15 dragged the market into the red on the last trading session of the week.
Foreigners continued to be the net buyers for the sixth week in a row. They bought shares worth $19.6 million and sold shares worth $14.7 million, resulting in net buying of $4.9 million. Hence, during the last 6-weeks, foreigners were net buyers of $36.9 million worth of shares.
Regional markets were in the positive zone on account of better than expected US economic data, where Dow Jones crossed the 9,000 points barrier for the first time since the start of the year. SSEA, PSI, Sensex, KOSPI and JKSE were up by 5.7 percent, 4.8 percent, 4.3 percent, 4.3 percent and 3.8 percent respectively. Currently, the local market is trading at 48 percent discount to region on one-year forward earnings multiple. Interestingly, with 4.3 percent rise in Indian market this week, the KSE 100-share index is now trading at 54 percent discount to Bombay Stock Exchange on earnings multiple.
FFBL and EPCL were among the major companies who announced their results this week. FFBL posted an earning per share of 53 paisas down 31 percent on yearly basis. UBL, Engro and FFC are the major companies, which will be announcing their financials in the coming week. Any positive earning surprises can be expected to lead to short-term rallies in these scrips.
“Investors remained optimistic for significant rate cut in the monetary policy,” said analyst at Shahzad Chamdia Sec Ahsan Mehanti. “Positions were taken in blue chips in oil, fertilizer and cement scrips on expectations of record payouts in the result announcement session, which also helped the market to stabilise.”
The Karachi Stock Exchange (KSE) 100-share index gained 19.39 points or 0.2 percent to close at 7,783.40 points as compared to 7,764.01 points of the previous week.
Other major factors that supported the market included approval of dividends for Letter of Comfort (LoC) unit holders of National Investment Trust (NIT), rise in international oil prices and renewed interest of foreign investors. The turnover was recorded at 193.04 million shares as compared with 183.81 million shares of the previous week, reflecting an increase of 5.02 percent.
“The SECP’s approval of 18 future securities and monetary policy statement prospects elated investors’ mood at the start of the week,” said analyst at JS Research Mustafa Bilwani. “SBP’s announcement of a delay in the monetary policy till August 15 dragged the market into the red on the last trading session of the week.
Foreigners continued to be the net buyers for the sixth week in a row. They bought shares worth $19.6 million and sold shares worth $14.7 million, resulting in net buying of $4.9 million. Hence, during the last 6-weeks, foreigners were net buyers of $36.9 million worth of shares.
Regional markets were in the positive zone on account of better than expected US economic data, where Dow Jones crossed the 9,000 points barrier for the first time since the start of the year. SSEA, PSI, Sensex, KOSPI and JKSE were up by 5.7 percent, 4.8 percent, 4.3 percent, 4.3 percent and 3.8 percent respectively. Currently, the local market is trading at 48 percent discount to region on one-year forward earnings multiple. Interestingly, with 4.3 percent rise in Indian market this week, the KSE 100-share index is now trading at 54 percent discount to Bombay Stock Exchange on earnings multiple.
FFBL and EPCL were among the major companies who announced their results this week. FFBL posted an earning per share of 53 paisas down 31 percent on yearly basis. UBL, Engro and FFC are the major companies, which will be announcing their financials in the coming week. Any positive earning surprises can be expected to lead to short-term rallies in these scrips.
“Investors remained optimistic for significant rate cut in the monetary policy,” said analyst at Shahzad Chamdia Sec Ahsan Mehanti. “Positions were taken in blue chips in oil, fertilizer and cement scrips on expectations of record payouts in the result announcement session, which also helped the market to stabilise.”
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