Stocks close on bullish note

The Karachi share market witnessed positive trend during the week ended on April 29, 2011 on the back of fresh buying due to good corporate results. The KSE-100 index managed to close above 12,000 points at 12,057.54 points with a gain of 103.17 points.
Trading also improved and the average daily volume at ready counter increased to 104.52 million shares, by 66 percent, as compared to previous week''s 62.92 million shares.
Market capitalisation increased by Rs 28 billion to Rs 3.207 trillion.
On Monday, the market opened under pressure and the index lost 38.35 points to close at 11,916.02 points with extremely low volume of 45.485 million shares.
On Tuesday, investors'' interest revived and the index gained 17.44 points to close at 11,933.46 points with improved 110.348 million shares.
On Wednesday, the index rose by 13.98 points to close at 11,947.44 points with 143.728 million shares.
On Thursday, the index gained 19.23 points to close at 11,966.67 points with 113.499 million shares.
On Friday, rhe market witnessed bullish trend and the index surged by 90.87 points to close at 12,057.54 points with 109.520 million shares.
Yawar Uz Zaman, an analyst at Invest Capital and Securities, said that the bilateral talks between Pakistan and India and blessings of good corporate results supported the market to lucratively knock the level of 12,100 points in the intraday trading, marking a week-on-week increase of 103 points.
Despite concerns regarding gas and electricity shortages in the country which directly affect the industrial output, oil, fertilisers along with banking sector scrips enjoyed impressive earnings due to increase in local commodity prices and higher returns on advances as well as contained provisioning.
The market responded positively after Pakistan and India agreed to eliminate restrictions on cross border trade whereas Pakistan offered Most Favourite Nation (MFN) status to India if it successfully removes non tariff barriers to trade. On the economic front, positivity was seen as US government is likely to release $981 million by the end of FY11 ($600 million for coalition support fund and $381 million under Kerry-Lugar bill). Similarly, gas supply to Engro plant was restored which was previously stopped by SNGPL. The combination of positive factors enabled the market to close above 12,000 points after 7 weeks.
The Friday''s net foreign inflows stood at $2.7 million whereas cumulative outflows during the week stood at $11.1 million (including off-market trade of $15.8 million adjusting for which the total foreign flows to equities stood in the green at $4.8 million.
Rabia Tariq at JS Global Capital said that the corporate result season for the quarter (January-March) was in full swing during the outgoing week. Most of the earnings reported were largely in line with market''s expectations. Thus, the local bourse closed 0.9 percent up at 12,058 level.
"However, with key results already announced, we believe budget related news will be the determinant of investor sentiments, going forward", she added.
Already, news flow such as government focus on containing the fiscal deficit and raising tax revenues in upcoming budget FY12 have started circulating the market.