Weekly Overview: KSE-100 Index upholds the 11,500 mark amid bearish trend

The KSE-100 Index remained bearish for the first three days of the week before finally rebounding in the last session on Friday, October 28 to close at 11,562 points after having seen the monthly-low of 11,283 points on Thursday, October
27.

After four consecutive sessions of bearish activity, including Friday of last week, analysts declared the 11,100 mark to be the resistance level of the index. Nevertheless, the market gained 278 points on the last day of the week in anticipation result announcements
from ENGRO and PSO. Both companies are scheduled to announce their results on Monday, October 31.  

The government announced a public holiday for Monday, October 24 after former chairperson of Pakistan People’s Party, Ms. Nusrat Bhutto, breathed her last on Sunday, October 23 in Dubai. The Karachi Stock Exchange remained suspended as well and this did
not go well with the investors.

After a gap-opening of around 100 points on Tuesday, a general pressure was observed across the board and the index dropped 8 points to close at 11,517. DG and Lucky cement announced results, but they were in-line with market expectations and thus did not
instigate a rally in the market.

The index fell below the psychological barrier of 11,500 points for the first time in October on Wednesday, largely due to the outbreak of news that gas supply will be halted to the fertiliser sector until further notice. The news of net selling in the foreign
investor portfolio investment did not have a positive effect on the local investor either, forcing the local investor to assume a similar strategy.

Negative sentiment prevailed in the market on Thursday as the index plunged another 104 points to close at 11,283 points. Political processions in Lahore were cited as a major reason for pressure in the market, but the news surrounding circular-debt caused
havoc as well.

NBP announced earnings of Rs. 6.78 for the nine-month period, but with no pay-outs on offer, the scrip remained under pressure. OGDC announced a favourable result of Rs. 5.10, above market expectations, but overall pressure forced the market not to react
on the announcement until Friday, when the scrip closed on upper-lock along with PSO and ENGRO to name a few.

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Posted by Hammad Malik on Oct 29 2011. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry