The Karachi stocks market gained 3.8 percent, week-on-Week (WoW), to close at 34,012.49 during the week marked by pre-budget uncertainties. The daily trading turnover remained healthy and averaged 70 percent higher on 316 million shares. The average value of shares traded daily rose 35 percent to stand at Rs 13 billion or $127.1 million.
The key sectors in which major gains were seen included beverages, 12 percent; engineering, six percent; personal goods, six percent; life insurance, five percent; cement, four percent and chemicals, four percent.
The major loser was from tobacco sector declining by seven percent while media, five percent and fixed line communication one percent.
On the foreign portfolio investment front, the trend remained positive with offshore investors' $23 million net buying far exceeding their net selling of $6.7 million.
The week under review saw local mutual funds and foreigners buying portfolios worth $24.5 million and $23.5 million. The local banks appeared as net sellers of $23.3 million.
The prominent sectors that attracted foreign investment included cement $15.1 million, banks $9.7 million, fertilizer $8.0 million, oil and gas $3.5 million and food producers $1.6 million.
However, major selling by foreigners was seen in sectors like technology and communication respectively attracting $7.6 million and power generation $6.8 million.
"Despite news of increase in Capital Gains Tax (CGT) rate in Budget FY16, the KSE-100 index rose," viewed analysts at Topline Research.
Raheel Ashraf of JS Global observed the cement sector as a key out-performer during the outgoing week on news of 29 percent YoY higher Public Sector Development Program allocation in the budget.
The banking stocks, he said, bounced back after receiving a battering in the last couple of weeks on higher-than-expected cut in discount rate, while the CPI inflation also edged up in May-2015.
Other key highlights of the week were: SBP rules out PKR devaluation, Privatisation Commission appoints financial advisors for seven power firms, government increases petroleum product prices by up to Rs 3.57 per liter, government releases 73 percent of Rs 525 billion PSDP budgeted for FY15 and K-Electric's (KEL) Rs22 billion Sukuk fully subscribed on launch day.
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