Bulls continued to rampage on the stock market for the third week in a row, and the benchmark KSE-100 index stormed past the 46,000-point level after 32 months.
According to 2010, Bulls had the last laugh in final session of the trading week at Pakistan’s Karachi Stock Exchange (KSE) on Friday as the main index managed to end with clipped gains.
The benchmark KSE 100-Index swelled by 0.16 percent or 15.58 points to close at 9,636.88 points, KSE 30-Index improved by 0.31 percent or 29.91 points to finish at 9,607.42 levels, whereas KSE All Share Index moved up slightly with 0.16 percent or 10.64 points to conclude the week at 6,757.67 levels.
In 2016, Kohat Cement increased 4.9 percent after the company announced better than expected earnings for the quarter ended December 31, 2015.
Having climbed by as many as 2,238 points in the two preceding weeks, the bulls seemed to be exhausted, and after volatile trade in two of the three trading sessions, the index closed with comparatively subdued gains of 277 points, or 0.61pc, at 45,931.
According to 2016, Volumes declined 28 percent to 85.73 million shares from 119.38 million shares in the previous session. Trading value remained steady at Rs6.08 billion as compared to Rs6.42 billion. The market capitalization rose Rs32 billion to Rs6.67 trillion.
The ECC twice changed the dates for the announcement of the textile policy during the outgoing week, which weakened investor sentiments on the textile sector. The government could not reach an agreement with the Independent Power Producers over the circular debt issue, which also was the dampener for investors who had accumulated shares in the energy and particularly the power production sector.
The local market also followed the international equity markets, which were volatile over the growing Covid-19 cases, uncertainty over the vaccine distribution and its efficacy, and above all the extraordinary events in the United States where the House of Representatives twice impeached President Trump.
There was a thaw as opposition appeared to have withdrawn slightly from its aggressive protest rallies. Investors were buoyed by the improvement in macroeconomic indicators where the Large-Scale Manufacturing sector grew by a substantial 14.5pc year-on-year in November, and remittances jumped 16.2pc for December 2020 at $2.4bn over the same month last year.
Average daily volume was up 9pc over the earlier week to 682m shares while the traded value settled higher by 16pc to $129m. Mid-tier stocks led the rally in the outgoing week while blue chips generally remained underperformers.
In 2016, Descon Chemical was the volume leader with 4.82 million shares and closed at Rs6.94. It was followed by TRG Pakistan with 3.90 million shares to close at Rs28.06. Maple Leaf Cement with 3.47 million shares and closed at Rs83.07 with an increase of Rs1.48.
While in 2010, investors mostly remained absent from the trading proceedings as market turnovers were reduced to 98.211 million shares as compared to 140.608 million shares, showing a contraction by 42.937 million shares.
The market started the day amid some pressure but bulls kept showing some promise, though in patches, as the first blood was won by the bears and dragged the main index into the red ink where it stayed for the better of the trading session, during which, it touched the lowest level of the day of 9,543.47.
Going forward market strategists are cautiously optimistic. Improving macroeconomic indicators, the stability of the rupee, and figures of cement dispatches, automobile sales, and an uptick in fertilizer use would determine corporate performance.
The quarterly financial results for September-December 2020 are due and could start pouring into the market next week. The performance and pay-out would be a big factor in the movement of stock prices.
Syed Faran Rizvi, Director SMH Financial Solution, told Xinhua that the positive rally at the Exchange for the past two sessions seemed to be over in the first part of the day as the investors looked shy ahead of the announcement of the Federal Budget 2010-11 on Saturday.
Although quiet at the moment, the outcome of the Opposition’s march and protest at the offices of the Election Commission in Islamabad on the 19th would set the tone for the political developments ahead.
Any uncertainty on the issue would be a bad augury for the market. Other issues that could set the direction of the market going forward are the performance of global equity and oil markets and the roll-out of the Covid-19 vaccine on the global front and the continuation of control on the pandemic cases in the country. The other dampeners could be the revision in power tariff and the increase in petroleum product prices.