KSE sets new record during week as index gains 593 pts
Sunday, April 07, 2013
Staff Report
KARACHI:
The Karachi stock market smashed all previous records during the week by breaching the 18,600 points level as investors’ confidence was restored returned with the submission of nomination papers and lower-than-expected Consumer Price Index (CPI) inflation for March.
The Karachi Stock Exchange (KSE) 100-share index gained 592.72 points or 3.0 percent to close at 18,636.03 points as compared to 18,043.31 points at the close of previous week.
“The market gained 3.0 percent as investor sentiment was upbeat after completion of the nomination papers submission process, lower-than-expected CPI inflation and optimism about March quarter earnings,” said Topline Sec dealer Samar Iqbal. “Across-the-board activity was witnessed with volume increasing by 83 percent of Rs 7.77 billion.”
Analysts said Unilever buyback brought interest in other food producers like Engro Foods, National Foods and Nestle Pakistan.
“Strong data on urea, DAP and cement sales for March 2013, speculations ahead of upcoming State Bank of Pakistan’s policy announcement and expectations of higher LDI revenues for telecom sector played a catalyst role in prevalence of bullish sentiment at the market,” said Arif Habib Corporation Director Ahsan Mehanti.
The weekly turnover rose 1.21 percent and traded 206.87 million shares as compared to previous week’s 204.39 million shares.
“Bulls dominated the trading sessions during the week as the country is going towards general elections, while buying on expectations for better corporate results, increased foreign interest and low inflation figures supprted the bullish trend,” said Escorts Capital COO Husnein Asghar Ali. “The news of buyback by Unilever supported the bulls.”
Key news of the week included the government asking to reduce tax collection target, fresh International Monetary Fund funding likely in July or August, fertilizer producers to challenge Competition Commission of Pakistan’s decision, CPI inflation rises 6.6 percent in March and increase in margins of oil marketing companies, he said.
Ms Iqbal said appointment of interim finance minister, likely announcement of monetary policy and result expectations will keep investors’ interest in the market. FFBL will be the first company to announce its March-end result on April 12.
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