Bulls run KSE up through the week

KARACHI: Bulls returned to the stock market during the week that ended on Friday as investors took positions on attractive levels while expectations of reduction in interest rates, decline in inflation and report by Credit Suisse played a major role in bullish activities.

The benchmark KSE 100-Index gained 130 points or 1.46 per cent to close at the level of 9,067 points. KSE 30-Index jumped by 165 points or 1.77 per cent to close at 9,562 points while KSE All-Share Index grew by 85 points or 1.35 per cent to close at 6,438 points.

He said market witnessed some depression at the beginning of the week because of worrisome law and order situation but was revived later. For the time being market would consolidate between 8,800 and 9,200 points before going to new levels, he added.

Though market saw bullish activities, foreign investors were the net sellers.
They sold shares worth $19.58 million and bought share valuing $12.08 million, thus emerging as net sellers of shares worth $7.5 million, according to the data released by National Clearing Company of Pakistan Limited (NCCPL).

The market took a bearish beginning of the week on Tuesday by losing 174 points to close at its lowest level of the last two months mainly due to deteriorating law and order and political situation. Rumours that Pakistan may not be included in MSCI Emerging Markets Index besides foreign selling also added to the pressure. The market remained closed on Monday due to a public holiday on account of Iqbal Day.

However, bulls returned to the market on Wednesday with decline in inflation and report by Credit Suisse on stock market which set a target of 11,200 points for the index by June 2010. The market ended 153 points up. Though market closed positive but there were some negative activities in the beginning where at a moment during intra-day trading the benchmark index touched its lowest level of the week of 8,685 points.

On Thursday, market ended with limited gains after volatile activities as investors went for booking profits at higher levels which lessened the green numbers; however, renewed foreign buying supported the market.

On Friday, last trading day of the week, buying by the local funds and banks at attractive levels let the index gain 142 points to close above its psychological barrier of 9,000 points.

Expectations of inflow from Friends of Democratic Pakistan (FoDP) and the International Monetary Fund (IMF) next month and hopes of reduction in discount rates too supported the rally. The key index, during intra-day trading, touched its highest level of the week of 9,078 points.

Investor participation was low as the trading week comprised of four days; 526 million shares were treaded which is 132 million shares less as compared to a turnover of 658 million shares a week earlier.