The Karachi share market witnessed a bullish trend during the last week that ended on July 16, 2015 on expectations of better corporate results, to be announced after Eid holidays. The benchmark KSE-100 index gained some 775 points (WoW) to reach all-time high level of 35,888 points at the end of the week. Average trading volumes also surged by 27 percent WoW to 479 million shares per day compared to 378 million per day in the previous week.
Market capitalisation posted an increase of Rs 113 billion to Rs 7.688 trillion at the end of the week up from Rs 7.575 trillion. Due to Eid holiday on Friday (July 17), only four trading sessions were held during the last week. According to Raheel Ashraf of JS Securities, Karachi Stock Exchange (KSE) extended year to date gains during the outgoing week, as the benchmark KSE-100 index rose by 2.2 percent WoW higher at a fresh high of 35,888 points.
However, the Oil and Gas Sector remained under pressure as Iran and a group of six nations led by the United States reached a historic accord on Tuesday to significantly limit Tehran''s nuclear ability for more than a decade in return for lifting international oil and financial sanctions, he added.
Resultantly, crude oil prices fell by as much as 2.3 percent as investors reacted to the freshly inked deal. Meanwhile, auto stocks garnered investor interest as well as auto sales for June 2015 clocked in 47 percent YoY higher, while some profit-taking was witnessed in the Cement Sector over news reports of 18-20 percent increase in gas tariff post-Eid, he maintained.
"Expected arrival of $337 million from the US under the Coalition Support Fund this month, FDI declining by 58 percent YoY to $709 million in FY15, government deciding to stop GIDC collection for three months, PSO asking the government to pay Rs 42 billion to avoid Jan like petrol crisis and Transparency International accusing K-Electric (KEL) of committing tax evasion of Rs 111 billion were some other key highlights of the week," Ashraf said.
Analysts at Topline said contrary to common perception, Pakistan market gained 4 percent in the Muslim religious month of Ramazan. Despite shorter trading sessions during Ramazan, average daily volume increased by 45 percent from previous month to 383 million shares, while trading value was 17 percent better in terms of Pakistan rupee. During the last week, average daily value decreased by 10 percent WoW to Rs 14.6 billion down from Rs 16.26 billion.
Major gain was seen in Chemicals (4.8 percent), Commercial Banks (3.7 percent) and Food Producers (3.1 percent). Major decline was witnessed in Oil & Gas (4.0 percent) and Tobacco (1.2 percent), during the outgoing week, they added. Major foreign buying during the week was seen in sectors like Commercial Banks ($2.5 million), while major net selling was seen in Chemicals ($5.0 million) and Oil & Gas ($1.3 million). Local banks were net sellers of $20.2 million during the week, while local mutual funds were net buyers of $8.2 million.
As per a KSE notice, Pakistan International Bulk Terminal Limited (PIBTL) received Rs 1.9 billion as cash consideration for issuance of 189.6 million shares at par value of Rs 10 otherwise than right to International Finance Corporation (IFC). According to State Bank of Pakistan remittance inflows have reached at an all-time high of $18.4 billion during FY15, up 16.5 percent, outpacing government target of $16.7 billion. Analysts at Arif Habib said volumes during this Ramazan in the KSE-100 have surpassed all barriers, creating a new record of 381m average volumes per day. The last trading day before Eid holidays befittingly recorded the highest traded volume of 602.4 million shares, capping off a wonderful month for market participants.