Weekly review: KSE-100 stays steadfast above 15,000-point barrier
Sector-specific activity resulted in volumes jumping 73%.
KARACHI:
The stock market continued its strong performance from the previous week and managed to stay firmly above the 15,000-point barrier during two days of trading following the Eid holidays on the first three days of the week.
The KSE-100 index managed to make small gains of 39 points (0.26%) during the week, as investors participated actively after the religious holidays. Most of the activity was sector-specific and the fertiliser and cement sectors remained in the limelight during both sessions.
Thursday saw the index post a strong performance, climbing 80 points which continued into Friday, as the index reached an intra-day high of 15,162 points;, the selling pressure forced it to close in the red, at 15,039 points, down by 41 points for the day.
Volumes were impressive during the week, as average daily volumes stood at 269 million shares traded per day, up 73% over the previous week. However, most of the increased activity was witnessed in the second-tier stocks as average daily volume rose only 12% to Rs5.23 billion shares traded per day.
The fertiliser sector was at the forefront as Engro Corporation witnessed increased activity following the announcement that the government was working towards providing uninterrupted gas supply to the fertiliser plants on the Sui Northern Gas network.
Engro gained 8.1% during the week as a result of these developments. On the other hand, Fauji Fertilizers appeared to be under pressure and shed 1.5% of its value on Friday after news emerged that its next quarter earnings are likely to disappoint investors.
The cement sector had mixed fortunes as it posted a strong performance on Thursday, only to be dragged back down on Friday. Lucky Cement, DG Khan Cement and Fauji Cement were the outstanding performers during the week.
The KSE hit a three year high market capitalisation during the week at Rs3.84 trillion, up 0.26% over the previous week.
What to expect?
The coming week will be critical for the stock market as normal trading sessions will resume for the first time since the beginning of Ramazan.
It will be crucial for the market to sustain itself above the 15,000 point barrier, as it consolidates due to lack of positive triggers.
The political scenario will also play an important role as the case against the prime minister is taken up by the judiciary and any developments on that front can swing the market both ways in the coming week.
Published in The Express Tribune, August 26th, 2012.
The stock market continued its strong performance from the previous week and managed to stay firmly above the 15,000-point barrier during two days of trading following the Eid holidays on the first three days of the week.
The KSE-100 index managed to make small gains of 39 points (0.26%) during the week, as investors participated actively after the religious holidays. Most of the activity was sector-specific and the fertiliser and cement sectors remained in the limelight during both sessions.
Thursday saw the index post a strong performance, climbing 80 points which continued into Friday, as the index reached an intra-day high of 15,162 points;, the selling pressure forced it to close in the red, at 15,039 points, down by 41 points for the day.
Volumes were impressive during the week, as average daily volumes stood at 269 million shares traded per day, up 73% over the previous week. However, most of the increased activity was witnessed in the second-tier stocks as average daily volume rose only 12% to Rs5.23 billion shares traded per day.
The fertiliser sector was at the forefront as Engro Corporation witnessed increased activity following the announcement that the government was working towards providing uninterrupted gas supply to the fertiliser plants on the Sui Northern Gas network.
Engro gained 8.1% during the week as a result of these developments. On the other hand, Fauji Fertilizers appeared to be under pressure and shed 1.5% of its value on Friday after news emerged that its next quarter earnings are likely to disappoint investors.
The cement sector had mixed fortunes as it posted a strong performance on Thursday, only to be dragged back down on Friday. Lucky Cement, DG Khan Cement and Fauji Cement were the outstanding performers during the week.
The KSE hit a three year high market capitalisation during the week at Rs3.84 trillion, up 0.26% over the previous week.
What to expect?
The coming week will be critical for the stock market as normal trading sessions will resume for the first time since the beginning of Ramazan.
It will be crucial for the market to sustain itself above the 15,000 point barrier, as it consolidates due to lack of positive triggers.
The political scenario will also play an important role as the case against the prime minister is taken up by the judiciary and any developments on that front can swing the market both ways in the coming week.
Published in The Express Tribune, August 26th, 2012.