Karachi Share Market Sentiment Expected to Improve Amid Improved Security Measures

Strategic Insights -

The government's success in maintaining security for Muharram mourning processions has boosted the Karachi share market's sentiment, with dealers anticipating a positive week ahead. However, potential changes in the position of political parties about the PPP-led government may impact the index's movement. The approval of the Revised General Sales Tax (RGST) is also expected to garner interest due to its implications on the International Monetary Fund (IMF) tranche.

Key Takeaways:

  • The Karachi share market's sentiment is expected to improve due to the government's successful security measures during Muharram.
  • The approval of the Revised General Sales Tax (RGST) may impact the market's movement due to its implications on the International Monetary Fund (IMF) tranche.
  • Buying in oil and gas and banking stocks helped maintain a positive market sentiment during the week ended December 15.
  • The oil and gas sector gained 2% in the last trading session due to the sale of BP assets to United Energy Group (UEG) for $775 million.
  • The share of United Bank Limited (UBL) gained 2% after the Abu Dhabi Group's (ABG) consideration of offloading its strategic stake in the bank.
  • The market gained 166 points to close at 11,786, with average daily volumes declining to 148 million shares, a 19% decrease from the previous week's average.
  • Remittance data improved, with inflows rising by 8% to $927 million in November 2010, taking the total for the first five months of the fiscal year up by 16% to $4.4 billion.
  • The trade gap ballooned to $1.6 billion in November, with imports rising faster than exports.

Statistics:

  • The Karachi share market gained 166 points to close at 11,786.
  • Average daily volumes declined to 148 million shares, a 19% decrease from the previous week's average.
  • Remittance inflows rose by 8% to $927 million in November 2010.
  • The total remittance inflow for the first five months of the fiscal year increased by 16% to $4.4 billion.
  • The trade gap ballooned to $1.6 billion in November, with imports rising faster than exports.
  • Foreigners invested $22.6 million in three days, with the highest single-day foreign investment since September 1, 2009, being $19.5 million.

Sources:

  • KASB Securities research report
  • JS Global analyst Rabia Tariq
  • HT Media Ltd.