Sunday, December 13, 2009
By Salman Siddiqui
KARACHI: The buoyant Karachi stocks rebounded from this week low to just above opening level of the week on the weekend.
The first two sessions of the week cumulatively shed 165.17 points while remaining three retrieved total 193.34 points, giving an edge of 28.17 points gain on weekly basis.
Market, therefore, lost and found the psychological level of 9,000 points in the first and last session of the week, respectively. Whereas, activities in tier two stocks kept the show going on.
The KSE 100-share Index gained 28.17 points or 0.31 per cent on weekly basis and closed at 9,037.30 points. Its junior partner the 30-Index improved by 31.97 points or 0.33 per cent on week-on-week basis and finished at 9,496.10 points.
Notably, penny stocks from bank, insurance, securities (investment), textile and chemical sectors dominated the list of volume leaders throughout the week. Some buying activity was also witnessed in front line energy stocks, but they fail to rank among top-ten volume leaders except for giant Oil & Gas Development Company in one session. According to market analysts terror attacks and uproar on National Reconciliation Ordinance (NRO) gave big blow to the market.
Meaningful depreciation in local currency against dollar after the State Bank of Pakistan (SBP) asked banks to arrange foreign exchange from inter-bank market to import crude oil, and speculations about the impact of Dubai debt crisis on local bourses altogether strengthened bearish spell in the first half, they added.
Hitting of shares-prices to their maximum possible low under the prevailing circumstance invited renewed buying on many counters, but unstable market outlook with noisy politics and economic upheavals did not allow investors to build positions beyond thin.
This scenario kept the average daily turnover flat at previous week level of 97 million shares. But penny rise in many stocks helped the overall market capitalisation slightly surging by four billion rupees to Rs2,613 billion on weekly basis.
A robust recovery of seven per cent in Dubai stocks market on Thursday and in other international markets; Moody’s stable outlook on local economy (B3 rating); increase in local oil and gas productions; and last but not the least the determination observed in the market regarding the re-introduction of a financing product carrying properties of dismantled Continuous Funding System (CFS MK-II) kept bullish activities continued in the last part of the week.
Dubai was the epicentre of fresh waves of recession, as it announced in Eid holidays its incapability to repay debt on time $59 billion.
According to a section of analysts banking and insurance stocks invited the attention of investors owing to their forthcoming full-year financial results announcements. Analysts foresaw their results in profits.
“NBFC and foreigners emerged as net sellers of $6.3 million and $0.6 million respectively. On the contrary, banks, mutual funds and companies remained net buyers with a cumulative net inflow of $8.3 million,” JS Research reported.
KASB Securities expected the KSE to continue its current trend of lacklustre volumes and choppy trading over the next couple of weeks. Politics would remain the key trigger.
Latest news flow indicates that IMF has approved Pakistan’s $1.2 billion December tranche, which should be positive for sentiments but accompanying details would also be equally important for any updates on the benchmark criteria set by the IMF for Pakistan, it added.
Bank of Punjab, KESC, Royal Bank, PIA and JS Bank were major gainers while Pakistan Services, Silkbank, Bestway Cement, Attock Refinery and Ghani Glass were major losers at KSE this week, According to KASB.
Movement in Weekly Volume Leaders
Symbols Opening on Close on Difference
Monday (Rs) Friday (Rs) (Rs)
AH Securities 46.98 46.36 -0.62
Azgard Nine 20.76 20.26 -0.50
Bank Al-Falah 13.39 13.80 0.31
Bank of Punjab 16.06 18.04 1.98
JS Company 29.81 30.63 0.82
JS Large Cap.Fund 4.88 4.73 -0.15
Nishat (Chunian) 15.21 16.53 1.32
Nishat Mills 65.23 64.97 -0.26
Pak Reinsurance 25.94 26.65 0.71
Pak.PTA 7.36 7.01 -0.35
Samba Bank 3.34 3.42 0.08
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