IMF tranche, FoP $30b aid hope jack up KSE by 242 points

KARACHI - Bullish sentiments continued to dominate the stock market as the KSE-100 Index gained another 242 points on Friday.
Marvellous bull-run dominated weekly proceedings at the KSE as market gained 9.25 percent during the week with healthy volumes. Market volume crossed over 300 million mark, significantly increasing investors interest.
The KSE-100 Index opened in the green zone, gaining 90.07 points and at the end of the day closed at 7,432.88 points with a gain of 241.79 points. Total trading value of the shares traded at market amounted to Rs12.510b against last sessions Rs11.104 billion.
Trading activity was much better as the ready market volume climbed up to 330.158 million shares on Friday as compared to last trading sessions 290.948 million shares traded on Thursday. Market capitalisation stood up to Rs 2.235 trillion as compared to Rs 2.164 trillion of last session. Out of 351 active stocks at KSE, 280 advanced, 60 declined while 11 symbols remained unchanged.
Stars of Fridays show were OGDC, PTC and HUBC as these stocks gained substantial ground. Power remained in power despite acute power shortfall. Newly launched PTCL internet and cable services did turn the fortune of the stocks.
Petroleum Policy 2009 was taken positive for E&P sectors. Investors took fresh positions in banking stocks and closed end mutual funds (available at decent discounts). NIB Bank was the volume leader of the day with the trading of 22.124m shares on Friday. Among other noted shares were National Bank with 15.418m shares, OGDC 12.994m shares, BOP 12.131m shares, WorldCall Telecom 11.972m shares, Jahangir Siddiqui 11.751m shares, FFBL 11.641m shares, Bosicor Pakistan 10.468m shares, PTCL 10.262m shares, Bank Al-Falah 9.379m shares namely.
Major gainers at the KSE include Fazal Textile and it gained 21 rupees/share, closing at Rs470.99 with the trading of only 100 shares on Friday, Bata Pakistan added 20.33 rupees/share and closed at Rs699.33, Unilever Pakistan gained 16.05 rupees/share, closing at Rs1914, National Refinery gained 8.30 rupees/share and closed at Rs174.46, Al-Ghazi Tractor added 7.63 rupees/share and closed at Rs161, Mari Gas Company closed at Rs156.41, gaining 7.44 rupees/share, BOC Pakistan (SPOT) also gained 7.28 rupees/share and closed at Rs152.95, Attock Petroleum gained 7.13 rupees/share, closing at Rs279.99.
On the other hand, Siemens Pakistan lost 29.70 rupees/share and closed at Rs685.30 with the trading of only 300 shares, Noon Pakistan lost 3.81 rupees/share, closing at Rs72.41, Thatta Cement lost 1.14 rupees/share and closed at Rs21.79, Bannu Woolen lost 1.08 rupees/share and its total value was decreased to Rs20.66, 1st Dawood Bank lost 1 rupees/share, closing at Rs13.67, Mehran Sugar lost 0.93 rupees/share and closed at Rs29, Al-Abbas Cement lost 0.64 rupees/share and closed at Rs7.92.
Intense buying was witnessed as retail / institutional investors remained bullish on economic fundamentals. Record exports in the cement sector plus international equity markets record gains and continued foreign interest in local equities affected investor sentiment positively, stated Ahsan Mehanti, market expert.
He further said that IMF support tranche of $847m and high expectation of $30bn from Friends of Pakistan contribution for economic assistance played an important role for investors interest.
Since the local bourses are trading 50 percent lower to the previous highs, the prevailing turnover is still below potential, with various fronts now giving positive signals. The handicapped turnover is the victim of uncertainty regarding the existence of leverage tool in ready board. Increase in CFS numbers by more than 100 percent despite likely hood of elimination of the product indicates willingness of both financiers and financees to participate in the product. With decline in inter bank rates, availability of low risk product will attract fresh financing. It is therefore need of the hour to reintroduce modified CFS MKII, as below potential turnover is not only hurting the tax collection target but it seems that low value of traded shares is the major hurdle in getting local bourses back on MSCI index.