SHAMK9
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The Karachi stock market made a new high during the week as investors remained active in the ring on hopes that the State Bank of Pakistan would reduce the interest rate to a single digit in its monetary policy announcement.
The Karachi Stock Exchange (KSE) gained 37.18 points or 0.22 percent to close at 16,845.09 points as compared to 16,807.91 points of the previous week.
Investors at the market remained cautious throughout the week ahead of the monetary policy announcement, said JS Sec analyst Furqan Ayub. However, market expectations were realised when the SBP opted to cut the discount rate by 50 basis points on Friday to 9.5 percent.
This was the first time since July 2007 that the discount rate had come down to a single digit, largely due to soft consumer price index inflation.
Market participation was limited as investors adopted a wait-and-see approach pre-monetary policy statement. On a net basis, foreigners remained net sellers of $3.8 million during the week. Other key news highlights of the week included; large-scale manufacturing growth coming in at 1.95 percent in four months of fiscal year 2012-13; trade deficit decreasing by 20 percent on yearly basis in November 2012 and local auto sales dipping by 3.0 percent on monthly basis in November 2012. The weekly turnover decreased 58.68 percent and traded 129.48 million shares as compared to previous weeks 313.42 million shares.
During the outgoing week expectations for Pakistan-International Monetary Fund (IMF) positive talks for revision in loan repayments, improved economic outlook and expectations for release of $600 million US Coalition Support Fund played a catalyst role in the bullish sentiment, said Arif Habib Corporation Director Ahsan Mehanti. The market closed in the positive zone despite concerns over rising political noise as Supreme Court issued contempt of court notice against Muttahida Qaumi Movement chief Altaf Hussain.
With dull activity, the market closed at an all time high of 16,845 points, said Topline Sec analyst Samar Iqbal. Investors were uncertain on the quantum of interest rate cut, which kept the volumes low.
However, investors remained bullish in cement stocks on expectations for healthy earnings for the quarter while Pakistan Telecommunications Company Ltd and Lotte Pakistan PTA were also on the investors radar on development on the telecom front.
The Economic Coordination Committee of the Cabinets approval of new pricing for Qadirpur gas field brought some fresh buying in Oil and Gas Development Company as well. Analysts expect that the market would continue making new highs after the policy rate announcement of 9.5 percent for the next two months. However, year-end phenomenon may keep market activity
dull.
The Karachi Stock Exchange (KSE) gained 37.18 points or 0.22 percent to close at 16,845.09 points as compared to 16,807.91 points of the previous week.
Investors at the market remained cautious throughout the week ahead of the monetary policy announcement, said JS Sec analyst Furqan Ayub. However, market expectations were realised when the SBP opted to cut the discount rate by 50 basis points on Friday to 9.5 percent.
This was the first time since July 2007 that the discount rate had come down to a single digit, largely due to soft consumer price index inflation.
Market participation was limited as investors adopted a wait-and-see approach pre-monetary policy statement. On a net basis, foreigners remained net sellers of $3.8 million during the week. Other key news highlights of the week included; large-scale manufacturing growth coming in at 1.95 percent in four months of fiscal year 2012-13; trade deficit decreasing by 20 percent on yearly basis in November 2012 and local auto sales dipping by 3.0 percent on monthly basis in November 2012. The weekly turnover decreased 58.68 percent and traded 129.48 million shares as compared to previous weeks 313.42 million shares.
During the outgoing week expectations for Pakistan-International Monetary Fund (IMF) positive talks for revision in loan repayments, improved economic outlook and expectations for release of $600 million US Coalition Support Fund played a catalyst role in the bullish sentiment, said Arif Habib Corporation Director Ahsan Mehanti. The market closed in the positive zone despite concerns over rising political noise as Supreme Court issued contempt of court notice against Muttahida Qaumi Movement chief Altaf Hussain.
With dull activity, the market closed at an all time high of 16,845 points, said Topline Sec analyst Samar Iqbal. Investors were uncertain on the quantum of interest rate cut, which kept the volumes low.
However, investors remained bullish in cement stocks on expectations for healthy earnings for the quarter while Pakistan Telecommunications Company Ltd and Lotte Pakistan PTA were also on the investors radar on development on the telecom front.
The Economic Coordination Committee of the Cabinets approval of new pricing for Qadirpur gas field brought some fresh buying in Oil and Gas Development Company as well. Analysts expect that the market would continue making new highs after the policy rate announcement of 9.5 percent for the next two months. However, year-end phenomenon may keep market activity
dull.
