The Karachi share market witnessed positive momentum during the week ended on September 28, 2007 with KSE-100 index rising to 13,351.79 points and gaining 286.62 points. The KSE-30 index also surged by 475.96 points, ending at 16,183.09 points level.
The market witnessed dull trading and the average daily volume of ready market remained level at 181.914 million shares as compared to 181.981 million shares of previous week.
The average turnover of futures market, however, increased significantly by 55 percent to 51.101 million shares against 32.912 million shares during the previous week.
Market capitalisation surged by Rs 294 billion to settle at Rs 4.101 trillion.
The market started on a bullish note on Monday on the back of positive development on the political front, and the KSE-100 index surged by 154.95 points to close at 13,220.12 points level. The KSE-30 index gained 208.04 points to close at 15,915.17 points level.
On Tuesday, the market witnessed a volatile session due to cautious stance opted by investors, and the KSE-100 index closed at 13,197.04 points, down by 23.08 points. The KSE-30 index lost 10.50 points to close at 15,904.67 points level.
On Wednesday, buying was witnessed and the KSE-100 index gained 73.24 points to close at 13,270.28 points level on the back of local institutions and retail investors interest, mainly in banking and fertiliser sector stocks. The KSE-30 index increased by 103.79 points to close at 16,008.46 points level.
Buying spree continued on Thursday and the KSE-100 index gained another 57.85 points to close at 13,328.13 points level on the back of fresh buying mainly in banking and cement sector stocks. The KSE-30 index surged by 141.35 points to close at 16,149.81 points level.
On Friday, the market saw selling pressure as the investors opted for profit taking. However, late buying supported the index to close in positive at 13,351.79 points level, up by 23.66 points while the KSE-30 index gained 33.28 points to close at 16,183.09 points level. Jawad Haleem at Atlas Capital Markets said that the week remained fairly uncertain from political point of view. Papers for presidential elections were filed by different candidates whereas the decision regarding keeping dual posts by President Musharraf kept the investors cautious. From the sectoral point of view, oil prices continued to surge, and so did the prices of DAP. Lacklustre FY07 results of cement companies saw a decline in their share prices. Scrip-wise, WorldCall Telecom remained volume leader during the last two days over the announcement of acquiring a majority shareholding by Omantel's board. Opening of HBL shares on regular counter after a period of more than two months invited profit taking by many which depreciated the scrip value by 9 percent on week-on-week basis.
Bilal Hameed at JS Global Capital said that banks came back in the limelight as their market cap increased by 5 percent. Investors made good entry in this sector as most of the stocks were trading at attractive levels. Investors maintained their good feel about the cement sector because of its growing exports and accordingly its market cap rose by 2.2 percent. Similarly, fertiliser sector's market cap rose by 2.3 percent on the back of impressive recent urea and DAP sales numbers, couple with rising DAP prices.
Ambreen Jiwani at Invest Capital & Securities said that the main gainers during the week were Paper & Board with 9.4 percent, Cable & Electrical Equipment 7.6 percent and Insurance 5.7 percent.
The major losers were Glass & Ceramics with -1.5 percent, Food & Personal Care -1.4 percent and Leasing -0.8 percent. The blue chip sectors namely Banking, (excluding HBL), Fertiliser, OMC, Cement, Telecom and E&P showed an increase of 2.6 percent, 2.3 percent, 1.3 percent, 2.2 percent, 5 percent and 0.1 percent respectively. The market capitalisation increased by 7.7 percent during the week and this huge increase is attributed to the initiation of trading (end of provisional trading) of HBL, which contributed Rs 193 billion to the total market capitalisation.
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