KARACHI: Bullish sentiments dominated the trading sessions at the Karachi stock market during the week as investors were on an upbeat note due to favourable petroleum policy 2009 which is set to increase the earnings of E&P sector and the recovery of international equity markets after the US bailout plan to tame toxic assets took charge, analysts said on Saturday.
The Karachi Stock Exchange (KSE) 100-share index gained 463.10 points or 7.3 percent to close at 6,803.46 points as compared to 6,340.36 points of the previous week.
Analysts said other major factors that affected the market’s sentiments positively include investors remained hopeful on friends of Pakistan meeting on April 17 expecting foreign funds to stabilise the economy, approval of $500 million from World Bank and expectations of cut in discount rate.
Analyst at JS Sec Atif Zafar said the overall market was largely cheered up by positive developments such as inclusion of Pakistan in the MSCI Frontier Market Index, further commitments for economic support by Asian Development Bank and World Bank and stability amongst the political ranks. E&P and cement sectors in particular remained in the limelight throughout the week.
MSCI issued a press release regarding reclassification of the MSCI Pakistan Index as MSCI Frontier Markets Index on May 29, 2009.Pakistan was excluded from MSCI Emerging market on December 31, 2008. Furthermore, $700 million commitment by international financial institutions and political stability drove the volumes during the week.
Average daily volumes stood at 250 million shares or $111 million as against 232 million shares or $95 million last week, depicting an increase of 7.7 percent. Moreover, CFS investment rose to Rs 1.6 billion with average annualised rate of 17.92 percent.
E&P sector was once again amongst the top performers in the outgoing week amid announcement of friendly petroleum policy and revised wellhead gas prices during the week. Moreover, the cement sector also performed well with impressive volumes driven by expectations of exciting upcoming results due to falling coal prices and KIBOR. E&P and cement sectors market capitalisation were up by 9 percent and 13 percent respectively when compared to total market capitalisation rise of 7 percent, which ended the week at $25.4 billion.
Selling by foreigners continued as they bought shares worth $10.3 million and sold $19.9 million, resulting in net selling of $9.6 million last week. Resultantly, cumulative net selling in March 2009 has now reached $46.4 million. staff report
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