The local bourse finally breached the 12,000 barrier and closed above the 12,050 level with average volume for the week crossing 104 million shares. Before the current week, volumes were trailing at 66 million shares; however, this week turned things around as average daily volumes crossed 75 million shares. On Friday, the index gained a significant 90 points. Majority of the top tier stocks especially banking giants, index heavy E & P companies and the rock solid fertiliser sector revealed their quarterly results during the week.
The major turnaround stock, LOTPTA surpassed investors’ earnings expectation hence generating hefty volume of 136 million, equivalent to 26 percent of the total weekly volume. Index return for the week stood at 2.1 percent, while current year return finally turned green. After almost one and a half months, the index sustained the 12,000 level on close, which can be considered as a good omen for investors. Result of the major banking sector was quite impressive in contrast with majority of analyst expectations, along with better earnings from fertiliser companies backed by the price hike. Furthermore, major E & P companies posted growth, but earnings were lower in contrast with expectation. We believe the result bag of the 1QCY11 and 3QFY11 can be considered as mixed bag, said Bilal Asif at HMFS.
The market saw a net outflow of $11.33 million during the week. The outflow was largely a result of a one off market transaction of Summit Bank, which was around $16.52 million. Looking at the KSE-100 stocks, 39 percent of the stocks were in bullish mood, while 58 percent of the stock moved in negative territory. OGDC, with a five percent gain over its preceding week closing level, provided the much required stability and support towards the stock market. Excluding OGDC, the index was headed towards a negative close.
The results season is over; hence no new trigger is likely to hit the market, except the budgetary expectations. The stock market is expected to sustain the 12,000 level in the upcoming week.
Third tier penny stocks like Gharibwal Cement and Pak Telephone’s stock prices appreciated by over 70 percent, while HBL, Lucky, OGDC and ABL were among the major gainers. JS group related companies were in deep trouble as rumors of financial turmoil in major JS companies were in circulation that kept investors away from the group stocks. We believe the upcoming month will witness turbulent days as budgetary expectations will keep the market active, he added.
