Pakistan Realog

KARACHI: The Karachi stock market witnessed a bullish trading week as Moody’s upgraded Pakistan’s local and sovereign bond ratings outlook to stable from negative highlighting improving economic fundamentals.

Investors took positively the revision in the ratings of NBP, HBL, UBL and MCB to stable by Moody’s investor service and revision in Pakistan’s sovereign debt ratings.

The Karachi Stock Exchange (KSE) 100-share index gained 96.63 points or 1.8 percent to close at 8,107.94 points as compared with 8,011.31 points of the previous week.

Other major factors that supported the market included intense buying witnessed ahead of approval of margin financing product at the market while approval of Bhasha Dam project was taken positive by investors for the cement sector. The turnover was recorded at 125.98 million shares as compared to 174.39 million shares of the previous week, reflecting an increase of 27.75 percent.

“The much-awaited monetary policy announcement failed to lure investors to the market this week,” said analyst at JS Research Mustafa Bilwani. “Investors now keenly wait on developments regarding margin financing, expected to be introduced soon.”

The State Bank of Pakistan (SBP) announced the monetary policy last weekend, cutting the key policy rate by 100 basis points to 13 percent. The cut came in below market expectations and failed to draw investors to the market, which was visible in the volumes, he said. Interestingly, SBP announced a change in frequency of monetary policy decisions from four to six times a year; which was believed by analysts an important development as it will allow the central bank to be more proactive in its approach.

Further developments regarding a margin financing product were made during the week, with the ‘trading affairs committee’ to discuss the approval of a leverage product. Earlier, the Securities and Exchange Commission of Pakistan had approved the Concept Paper on margin financing, which according to reports could be introduced in the market as early as next week.

Foreigners continued their buying spree at the bourse, buying shares worth $18 million while selling shares $8 million, resulting in net buying of $10 million. Foreigner’s net investment at the bourse has now reached $60 million since the beginning of the fiscal year.

“Expectations of resolution of circular debt issue of OMCs, IPPs, oil refineries next week, rise in international oil prices near to $73, foreign interest in telecom sector, expectations of record result announcements by oil exploration companies next week encouraged investors to take positions,” said analyst at Shahzad Chamdia Sec Ahsan Mehanti.

Source: Daily Times

Also Check:

1. KSE 100 index closes 26.30 pts up on institutional support
2. KSE develops new leverage product
3. KSE index crosses 8,500 level on heavy buying
4. S&P raises Pakistan’s credit rating
5. Rate cut hopes, US aid help recover losses on KSE
6. Rising violence in Pakistan to dissuade foreign investment: Moody’s
7. CCP says floor on equity index illegal
8. Islamabad stocks surge 34 points
9. LSE rises 46 pts
10. KSE jumps 209 points to hit 8-month high
11. KSE end lower; rupee flat
12. KSE-100 Index inches further up by 14 points
13. KSE manages to close higher, 100-share index surges 14 points
14. Karachi bourse manages to stay above 8,000 points
15. KSE hits 8,000 psychological barrier on IMF, MCB news
16. LSE loses 31.47 points
17. Selective buying helps KSE gain 63 points
18. LSE up 31 points
19. Selective buying helps KSE gain 63 points
20. Lahore stocks add 32 points
21. ISE closes 30 points higher
22. Moody’s rating change pushes KSE 100-share index up by 62 points
23. KSE: Margin financing may be launched next week
24. Foreign investment at KSE hits $10 million mark
25. Foreign investment at KSE hits $10 million mark
26. KSE WEEKLY REVIEW: Islamabad stocks gain 50 points
27. LSE closes by 87 points up
28. ISE up 68.29 points
29. KSE down 40 points on profit-selling
30. Investment, results and improved rating push KSE 433 pts up
31. Islamabad stocks gain 168.33 points
32. LSE remains bullish
33. KSE ends 1.5pc higher; rupee firms
34. KSE-100 Index cross 8,900 level
35. KSE reaches highest level of the year at 8,878.64 points
36. Karachi stocks retreat 2009 record close
37. KSE falls 67 points on technical correction
38. BRIndex30 loses 147.40 points
39. Index down 88.79 points
40. ISE index up 47.98 points
41. BRIndex30 falls by 61.49 points
42. KSE-100 index gains over 2pc to hit year’s high
43. SBP likely to cut CRR by one percent: Monetary Policy on September 29
44. Buying, hopes of foreign investment push KSE-100 index 277 points up
45. Index loses 49.58 points
46. Karachi bourse loses 254 points on technical correction
47. KSE falls 126 points as terror attacks mount
48. LSE moves up by 16 points
49. Rise in world oil rates, fall in CPI push 100-share index 44 points up
50. Stocks slump 3.36 percent