Share market turns bullish

The share market witnessed bullish trend during the week ended on April 3, 2010 on the back of strong interest of foreign investors, and the KSE-100 index surged by 278.59 points to close at 10,416.52 points level.
Although the market opened on a negative note, improving situation on political front after consensus on constitutional reforms and healthy buying by offshore investors supported the index to register healthy gains.
Both local and foreign investors' interest was evident in the improving trading activity and the average daily volume at ready counter increased by 15.76 percent to 174.191 million shares as compared to previous week's 150.474 million shares.
Market capitalisation increased by Rs 72 billion to Rs 2.951 trillion. Foreign investors registered record buying of $35.7 million during the week while individuals were net sellers of $14.1 million.
On Monday, declining trend was witnessed at the equity market due to profit taking opted by investors, and the index lost 81.47 points to close at 10,056.46 points, with a volume of 148.585 million shares.
On Tuesday, the market witnessed mixed trend. However, the index managed to close in positive at 10,073.77 points level with a gain of 17.31 points, with 147.092 million shares turnover.
On Wednesday, healthy trading activity was seen and the index surged by 104.66 points to close at 10,178.43 points level with 199.308 million shares.
On Thursday, the positive trend continued and the index gained 68.34 points to close at 10,246.77 points level with 170.343 million shares.
On Friday, the market witnessed bullish session on the back of strong interest of foreign investors and the index surged by 169.75 points to close the week at 10,416.52 points level with 205.629 million shares.
Rabia Tariq, analyst at JS Global Capital, said that the index increased by 2.7 percent during the week, celebrating the consensus achieved on the 18th constitutional amendment. Buying by foreigners registered a 30-week high of $35.7 million, with Engro, OGDC and POL being star performers.
The immediate investor reaction to the news of national consensus on the proposed constitutional reforms positively impacted the market.
Status quo maintained under the latest monetary policy announced during the weekend did not dampen the market sentiment. The oil & gas and chemical sector outperformed the market with OGDC, POL and PPL gaining 4.6 percent, 4.2 percent and 2.3 percent, respectively on the back of rising international oil prices. Moreover, keen foreign interest was witnessed in Engro which rose by 8.9 percent. Mixed activity was observed in the cement sector, post the implementation of the inland freight subsidy which was only confined to companies in the north.
Saeed Khalid at Invest Capital and Securities said that the index continued to show rising activity, majority on the back of easing political concerns and the foreign flows. From the political side, political parties agreed to table the 18th amendment in both houses of Parliament. On foreign investment side FIPI registered marked improvement of 274 percent on weekly basis to $35.6 million compared to the previous week's inflow of $9.5 million. The increase in oil prices in international market spurred foreign buying interest in the oil sectors.