Bullish trend witnessed

Bullish trend was witnessed at the Karachi share market during the outgoing week ended March 04, 2011 in the expectation of early implementation of leverage product. The KSE-100 index surged by 776.51 points (6.9 percent) on week-on-week basis and closed at the level of 12,000.03 points from previous week's closing of 11,223.52 points.
Trading activities also improved significantly due to reviving interest of local retail investors and the average daily volumes at ready counter increased by 49.5 percent to 146.50 million shares as compared to previous week's average of 97.98 million shares.
The overall market capitalisation increased by Rs 196 billion to Rs 3.233 trillion. The foreign investors remained net buyers of shares with a net inflow of $2.89 million during the week.
Asad Siddiqui, an analyst at Invest Capital and Securities said the market saw net foreign inflows of $2.89 million this week against $5.43 million net outflows last week.
He said that expectation of early implementation of MTS coupled with attractive levels of the market made it very difficult for the investors to resist investment temptation, and as a result, better activity was witnessed in the market as investors flocked in large numbers. Exceptional results posting by the National Bank of Pakistan (NBP) gave market the further support it required.
Rabia Tariq at JS Global Capital said that expected launch of the MTS elevated investor sentiments in the outgoing week as the KSE-100 index closed 6.9 percent up on week-on-week basis. Further, the corporate result season nears conclusion with NBP, BAFL, NCL and PSMC being major scrips announcing their earnings. Moreover, SBP released the fiscal account details, with the deficit widening to 2.9 percent of the GDP in 1HFY11. Further, government's decision to firstly raise and later revert half of the 10 percent hike in POL prices kept investors on their toes.