With the onset of budget related rumors and unending ties between Pakistan and the United States, trading activities at the Karachi bourse remain stagnant.
The average traded volumes at the Karachi Stock Exchange (KSE) merely increased by 8.4 percent to 156 million shares, while average traded value surge to $ 68 million (up 3.6 percent WoW).
“Regardless of happy ending NATO summit at Chicago, resumption of supplies to Afghanistan remained seal and no development has been inked in this regard,” viewed Yawar Uz Zaman of InvestCap.
As a result, the analyst said, investor sentiments looked depressed and market remained in a consolidation phase where index closed below psychological level of 14,000 points and closed at 13,925 points, up 0.49 percent WoW. Furthermore, the fertilizer stock once again came under pressure on account the possibility of imposing additional gas infrastructural surcharge (cess) on feedstock gas price.
However, positivity was seen in cement sector scrips, which followed another increase of Rs10 per bag during the week and expected Rs873 billion allocation for the Public Sector Development Program in budget which would further boost cement demand going forward.
On the economic front, the Pak rupee depreciated to its ever high peak (1USD=Rs92.35) against USD due to repayment of IMF of $ 394 million on May 24.
However, workers remittances posted a solid YoY increase of 20 percent to $10.9 billion in 10MFY12.
As far as foreign flows are concerned, local equities witnessed net FIPI of $12.3 million as compared to an outflow of $6 million, registering increase of 200 percent WoW. Futures open interest up 14.4 percent, spreads decreased by 246 basis points to 9.2 percent.
The market’s open interest was up by Rs 397 million, up 14.4 percent, to stand at Rs 3.2 billion.
While futures volumes increased by 58 percent to average 22 million shares.
Moreover, futures spreads went down by 246bps to 9.2 percent.
The top-5 scrips at the futures counter holding 60 percent of the total open interest were DGKC, ENGRO, FFC, AHCL and LUCK.
“As the upcoming week would probably be the last week before the budget announcement for FY13, therefore, we believe, that market would prominently respond on the sector specific budgetary measures along with any positive development on PAK-US relations,” Yawar said.
