KSE receives 32-month high investment of $19.6 million

By Shahid Abbasi May 5th, 2012 ( 1 Comment )

Karachi: The bullish rule witnessed at Karachi Stock Exchange (KSE) as foreign made 32-month high investment of $19.6 million on the closing trading day on Friday.

The investment inflow was tremendous which was witnessed after long period since August 31,2009 that pushed the market above 4-year high levels, as KSE100 index gained 569 points (4.1%WoW) to close at 14,612 points level.

The bullish sentiment prevailed at the local bourse throughout the week on the back of strong foreign buying. Attractive valuations kept investors’ mood fairly buoyant as the benchmark Index rose to its highest level since May 5, 2008.

The KSE-100 gained 570 points (up 4.1%WoW) to close at 14,612 points. The volumes also improved by 1.2%WoW to 260mn shares. At the end of week, the aggressive stance of foreigners was evident as they bought shares worth $33 million, while the local bourse also outperformed the regional markets by 3%.

A close scrutiny of the foreign flows to the Asia Pacific region reveals interesting fact that inflows to Pakistan markets contributed 6% to total net inflows to the region this week (excluding net outflows from few markets) compared to only 2% last week, whereas comparing on the basis of total net inflows (total flows on a net basis to all regional markets ex-Japan), Pakistan’s share in inflows remained at 6%, same as in the last week.

Interestingly, the foreign investment to equities was supercharged despite rupee touching all-time low of Rs91.07 this week.

The daily traded volumes during the week also stood relatively thick averaging 259 million shares but flat compared to 256 million shares last week (+1.2%WoW).

Analysts said that activity remained concentrated towards low-tier scrips as, in fact, average trade value declined by 6.6%WoW to $88 million vs $95 million last week.

This week proceedings initiated with high tensions in political circles, but budgetary proposals related to 50% decrease in sales-tax on imports of raw material and government ability to fetch more liquidity from the secondary markets at stable yields gave investors sheer confidence.