Karachi bourse appeared record-breaking during the short week post-Eid-ul-Fitr with equity investors positively eyeing gains from strong corporate announcements in selected scrips. KSE-100 index, however, ended the week in red shedding 0.3 percent Week-on-Week (WoW) to close at 35,815.20 points. The week under review also witnessed the benchmark index having crossed the 36,000 points psychological barrier.
Friday, the last trading session, saw trading turnover climbing to 783 million shares, a high last was seen 10 years back on March 10, 2005. Analysts at Topline Research view that the development was led by 100 million shares trading in Silk Bank Right with average price of Re 0.3 per share.
"The Karachi Stock Exchange depicted mixed sentiments as the long-awaited Judicial Commission's report declared 2013 general elections fair," said Raheel Ashraf of JS Research.
Another possible trigger for the sentiments-driven market was the State Bank of Pakistan's (SBP) announcement of monetary policy which Saturday was set at the target rate of 6.5 percent owing primarily to lower inflation numbers. Led by second- and third-tier issues, the trading volumes upped by 38 percent to average on 660 million shares per day. The traded value also settled in green by 12 percent at Rs 16.3 billion or $159.8 million.
Multi-utilities, telecom and commercial banks emerged as major gainers with 10, 4.5 and 2.2 percent price hike. Major losers of the week were life insurance, down 3.2 percent; cement, down 2.8 percent and oil and gas, down 2.4 percent.
The foreign investors were the net sellers of portfolio worth $7.9 million, while the local mutual funds and banks made net selling of $3.3 million and $9.7 million.
Major buying was seen by individuals who bought shares worth $15.1 million, on a net basis.
Major net buying by foreigners during the week was seen in sectors like commercial banks ($4.1 million), while major net selling was seen in power generation and distribution ($3.6 million) and oil and gas ($2.3 million).
Other key highlights of the week were: Rains heightening threat of floods in the country, Pakistan, IMF expected to meet next week to discuss release of next tranche, Minister stating gas tariff hike summary not moved as yet, OGRA completing quorum after two years, Ministry barred from presenting draft auto policy to ECC and NEPRA holding federal government and K-Electric equally responsible for blackouts in Karachi.
"KSE-100 index remained range-bound as second-tier stocks remained in limelight," said Raheel. Abdul Azeem attributed the week's record-breaking trend to investors' optimism for favourable corporate results, especially in banking, fertiliser and auto sectors.
Moving forward, the analyst said, the monetary policy, which Saturday was set at 6.5 percent target rate, would significantly affect the market sentiments.
"We also expect that soft inflation for the month of July would have a positive impact on the market," he said.