In the week ended on March 02, the benchmark KSE 100-share index surged by 382.45 points, or three percent, to 13,088.97. With this, the index has increased by 1,741.31 points, or 15.34 percent, to date since the beginning of calendar year 2012.
Experts said that the market has moved up on account of healthy corporate results announced for the period ended on December 31, 2011 and planned introduction of amnesty scheme under capital gains tax (CGT) regime with effect from April 01.
The finance minister had announced the scheme and some other relaxations in CGT regime sometime late in December 2011. “The planned introduction of amnesty scheme has been factored-in now,” said Ahsan Mehanti, an analyst at Arif Habib Corporation, adding that strong earnings still having potential to invite follow-up buying in this post results announcement era.
Besides, the political uncertainty at world due to Iran factor, changing Pak-US relations pertaining to gas pipeline from Iran to Pakistan and record depreciation in rupee in parity with dollar would be some dominating factors at KSE next week.
“The market would be range-bound next week and consolidate near and around 13,000 points,” he said, “Fertilizer, banking and oil stocks may invite follow-up buying ahead.”
Munir Khanani, chief executive officer of Muhammad Munir and Muhammad Ahmed Khanani, believed that the market was still having a room for further growth going forward.
Majority of the financial results announced at KSE were outstanding and still having potential to take market to the next level. “Banking and cement stocks would take the market to the next height.”
Saqib Hussain, head of equity sales at MM Securities, however, advised cautious approach to investors, saying that the 13,000 points level could invite profit selling for a brief period. “The benchmark 100-share index may bounce back up to 12,700 points level next week.”
An analyst at KASB Securities said that the market focus would shift towards developments regarding issuance of CGT SRO/Presidential Ordinance expected sometime next week after result season came to its virtual end now.
NBP was the only one blue-chip, which was yet to announce its earnings for the year ended on December 31, 2011. NBP board would meet for the purpose on March 06, he added.
In the previous week, volumes declined by 11 percent ton 213 million. The market capitalisation, however, surged by Rs82 billion to Rs3,392 billion. Moreover, foreign investors poured in more $5.60 million during the week.
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