BULLS RULE KSE - Weekly Report

Volumes improved as 756 million shares exchanged hands in the overall market during the week
KARACHI: Karachi stock market went through a bullish week as its main index ended near 2 per cent up mainly on decline in PIB yields, SC decision on Sharif brothers and rising international oil prices however deteriorating law and order situation remained a concern for the market participants.
The benchmark KSE 100-Index rose by 130 points or 1.82 per cent to end at a level of 7,276 points.
"Buying activity witnessed as PIB yields fall by 61 basis points in 10 years, tenor indicating falling interest rate trend. Bullish activity remained in oil sector as international oil prices cross 63 USD" said Ahsan Mehanti, CEO Shehzad Chamdia Securities.
Ahsan added that expectations of record PSDP allocation of over Rs 600 billion in Federal Budget 2009-10 invited investment in cement sector.
Sharif brothers eligibility for elections, gains in international equity markets & rise in oil prices played a catalyst role for positive activity in the market.
Moreover, investors remained positive on oil marketing companies due to limited fall of local petroleum prices. Gas line deals with Iran taken positive for gas marketing companies.
Week started with a minor gain of 27 points on Monday as investors took position at attractive levels but the participation of investors was limited due to strike call in the city, index moved in a limited range where at a moment during intra-day trading it touched its lowest level of the week of 7,125 points. Mixed activities stayed during the next two days also, where index closed 3 and 12 points up respectively on Tuesday and Wednesday.
On Tuesday there was uncertainty on the Supreme Court's decision regarding Sharif brother's eligibility but on the next day market saw some positive activities during intra-day trading on SC decision but market witnessed pressure due to Lahore incident.
Decline in PIB yields played a catalyst role for the bullish activity in the market on Thursday where the index gained 99 points, hopes of early end of the military action was also a factor for the bullish move.
Market continued to show positive activities on Friday where during intra-day trading it touched its highest level of the week of 7,368 points but as it was the last trading day of the week investors preferred to book profits at higher levels and market ended with a minor loss of 11 points below 7,300 levels.
Despite some positive activities in the market, there was net selling by the foreign investors as according to the figures released by NCCPL there was net foreign selling of around $4.15 million during the week.
Volumes too were improved as 756 million shares exchanged hands in the overall market during the week which is 177 million shares more as compared to a turnover of 579 million shares a week earlier.
Out of total 383 active issues, 215 ended positive and 145 negative while 23 issues remained unchanged.