KARACHI – Investors seemed skeptical about the benchmark index performance; hence average daily volumes remained at lower levels of 73 million shares in contrast with the current average daily volume of 118 million shares.
The current market return has again dipped, standing at negative one percent. The month’s first week exhibited range bound behavior, as the index moved within a band of merely 181 points on both sides. With little upside required to breach the 12,000 level, investors were expecting the index to breach the mark, set in the current week.
However, lack of aggression or willingness towards investing kept the index below 12,000 points. Marginal increment of 20 points clearly depicted that investors were equally divided. Investor’s interest might increase as the quarterly results season is expected to kick-off soon. Foreign participation seemed feeble, as an investment of 3.78 million may be considered as a dampening factor.
Inflation numbers, for the month of March-11, depicted an annual 13.16 percent rise, while the current CPI inflation stood at 14.20 percent. Current inflation reduced by 13bps to 14.20 percent, despite rise in monthly inflation by 1.48 percent, clearly showing the base year effect.
“We estimate year-end CPI inflation to be in the range of 14 percent and 14.50 percent. Furthermore, we presume that the current pace of inflation may not allow a change in discount rate for the fiscal year,” said Bilal Asif at HMFS.
A majority of the top tier stocks were out of colour and depicted lackluster performance, as merely HBL and BAFL posted better returns. Furthermore, automobile makers including INDU and PSMC performed better at the stock market, largely due to an expected rise in car prices, backed by JPY appreciation against green bag.
Increase in GRM of refineries kept refinery stocks in the limelight, hence posturing better price performance at the local stock market. Furthermore, the FY12 budget making process has already kicked off and news on taxation measures would increase the stock market volatility.
