Another all-time high
Karachi Share Market sustained its bullish momentum during the outgoing week, as the benchmark KSE-100 index gained 1.8 per cent Week on Week (WoW) to close at its all-time high of 33,324.82 points. The benchmark KSE-100 index closed at 33,324.82 points, up by 593.21 points or 1.8 per cent on WoW basis from 32731.61 points.
Copyright Business Recorder, 2015
Raheel Ashraf of JS Research expected that the Central Bank would cut the policy rate by 50 bps. As a result, the benchmark KSE-100 gained 1.8% WoW to close at yet another all-time high of 33,325.
He said that average daily volumes clocked in 27% WoW higher at 296m shares per day, while foreigners returned net sellers worth US $6.1 million.
Oil stocks gained on slight recovery in oil prices and attractive valuations, while proposed tax incentives for the telecom sector led to telecom stocks'' out performance during the outgoing week, he maintained.
Engro Corp (+4% WoW) was a key out-performer as the stock rallied on prospects of its fertilizer unit getting uninterrupted gas from Mari gas field and in anticipation of its LNG terminal coming live in March this year.
The average market capitalisation has advanced by 2.3 per cent to Rs 7664.58 billion from Rs 7491.83 billion or in dollar terms 2.3 per cent to US $74.97 billion from US $73.31 billion during last week.
Similarly, the average daily value has progressed by 20.6 per cent to Rs 15.49 billion from Rs 12.84 billion or in dollar terms 20.6 per cent to reach US $153.59 million from US $127.40 million during last week.
The average daily volume during the week stood at 295.52 million shares from 232.14 million shares, depicting 27.3 per cent growth on WoW basis.
Other key highlights of the week were: receivables of the power sector soaring to Rs590 billion from Rs513 billion in June 2014; cement sales rising by 6.1 per cent YoY in 1HFY15; tax collection edging up by 14 per cent YoY to Rs1.17 trillion and the federal government considering not extending 650MW power supply from national grid to K-Electric (KEL).