Karachi stock market continued positive momentum during the week as index closed at 13,353 points week-on-week (WoW) gaining 263 points during the week.
Meanwhile, the intraday volumes shot to 553 million shares on the last trading session.
However, the KSE 100-share index heavyweights remained silent where most of the activity was seen in low tier scrips as average traded value of the market declined by 11.3 per cent WoW to $79.2 million.
“The ongoing rally in the market was further supported by S&P stance for maintaining the current rating of Pakistan to B-/Stable,” viewed analyst Hasan Raza at InvestCap.
It though stood cautious over the ongoing political rift in the country, he added.
Meanwhile, the government plan to re-initiate the privatization program, which is envisaged to fetch it around Rs30 to Rs35 billion, was duly welcomed.
The increase in cement dispatches by 3.48 per cent to 20.45 million tonnes during 8MFY12, increase in export prices to Afghanistan and prospects of cement exports to Saudi Arabia kept the cement scrips in limelight during the week in review.
In addition to that, bumper wheat production during current season and expectations of four per cent of GDP growth this year by the Finance Ministry also kept the market upbeat.
Auto sector performance by the end of the week also provided some support.
The auto sales, including car, LCV, and pickup, in the 8MFY12 improved by 16 per cent YoY to 111.9k units. On the negative side, postponement of the 3G license auction by further two months due to failure of getting clearance from the Federal Cabinet came as a dent.
As far as portfolio investment is concerned, the market witnessed an inflow of $7.5 million during the week compared to inflow of $5.6 million in the previous week.
The market open interest position, during the week, increased by Rs 111 million or 4.8 per cent WoW to stand at Rs2.42 billion.
However, futures spreads went down by 21 basis points WoW to 7.45 per cent owing to rise in regular market. Future volumes increased by 15.70 per cent to 14.7 million shares. The top-5 scrips at the futures counter holding 65 per cent of the total open interest were ENGRO, NBP, FFC, DGKC and POL.
“The positive momentum in the market continues to prevail on the back of respite in the CGT issue,” Raza said.
An increased activity in the KSE-100 index, he said, seems to reinforce this positivity.
However, there is an increasing tilt towards low-tier scrips as far as activity is concerned, as depicted by decline in traded value at the bourse.