Positive trend on KSE

Positive trend was witnessed at the Karachi share market during the week ended on April 1, 2011 and the KSE-100 index increased by 333.51 points to close at 11,885.64 points. Trading improved and the average daily volume at ready counter increased to 78.12 million shares, or 24.9 percent as compared to previous week''s 62.56 million shares.
Market capitalisation increased by Rs 86 billion to Rs 3.167 trillion. The inflow of foreign investors'' portfolio investment (FIPI) declined by 38 percent to $2.97 million as compared to previous week''s inflow of $4.78 million.
On Monday, the market opened on a positive note and the index increased by 30.90 points to close at 11,583.03 points with 78.866 million shares.
On Tuesday, healthy buying was seen as the index surged by 128.37 points to close at 11,711.40 points with 110.386 million shares.
The trend continued on Wednesday and the index gained 97.21 points to close at 11,808.61 points with 52.323 million shares.
On Thursday, the market witnessed mixed trend due to profit taking and the index closed at 11,809.54 points with a minimal gain of 0.93 points, with 68.525 million shares.
On Friday, the market witnessed positive trend and the index increased by 76.10 points to close the week at 11,885.64 points with 80.502 million shares.
Yawar Uz Zaman, an analyst at Invest Capital and Securities, said that the week ended with a couple of positive news rushing into the market. Although Pakistan lost in the World Cup semi final match against India. This was believed to have resumed long-halted significantly important bilateral talks between the two countries. This somehow was one of the factors forcing the index to cross the level of 11,800 points by the end of the week.
In addition to this, foreign exchange reserves of the country also touched new highs as they stood at $17.95 billion, while on economic front, ADB-WB approved $775 million of loan for infrastructure development ($650 million is planned for development of the flood-hit areas). More importantly, Asian Investment Conference, held in Hong Kong, provided the government of Pakistan to seek to attract foreign investors by providing them real time information related to capital market transactions and investment moots. Lastly, greater price pass-on by cement and fertilizer sectors, on the back on higher tax and input costs, raised investor interest in these sectors.
Sana Hanif at JS Global Capital said that the mixed corporate and economic news flows resulted in range-bound activity at the bourse with KSE-100 index closing up 334 points, and volume strengthening to 78 million shares, up 25 percent.
The SBP announced its policy review and, as was largely expected, kept the DR unchanged at 14 percent for the next two months. Moreover, in the wake of hike in international oil prices, the government increased local oil prices in the range of 9 percent to 13 percent. Overall, banks and construction and materials sectors outperformed the market, while oil and gas under-performed.