Karachi stocks may remain bullish;investors eye Sept results

Market participants are eagerly waiting for quarterly earnings, while a recovery in world oil prices may continue to stir buying spree in the week ahead, analysts said. “Going forward, the market is likely to look forward to the September quarter results, while recovery in oil prices is set to bring oil stocks back in the limelight,” said a KASB Securities report.
Analysts expect the market to remain positive next week with oil prices remaining a major trigger, along with the political aftermath of by-elections.
The market started the outgoing week on a bearish note but was propelled forward in the remaining sessions in line with most global markets, which also gained during the week.
The benchmark Karachi Stock Exchange (KSE) 100-share Index gained 873.45 points, or 2.649 percent, to close the week at 33,843.18 points. KSE 30-share Index increased 609.10 points, or 3.08 percent, to end at 19,774.72 points.
Average weekly volumes dipped 1.7 percent with an average 175 million shares a day.
Foreign portfolio investors’ net selling amounted $19.8 million amid one-off transactions in Dawood Hercules, Murree Brewery and HBL.
Analyst Faizan Ahmed at JS Global said excitement returned to the market with an elimination of sentimental concerns during the week, putting an end to continued dull activity, which plagued the market from September. “Of late, the benchmark index continued to defy improvement in macroeconomic indicators, such as IMF (International Monetary Fund) tranche, persistently low CPI (consumer price index) readings, a 50 basis points cut in discount rate,” Ahmed said.
The IMF released its eighth review report on Pakistan’s economic performance, adding positively to the sentiments as outlook on macroeconomic indicators, particularly external account, remained strong. Discussions between the IMF and Pakistan authorities for the next quarter review are slated for 26 October to 6 Nov, whereby the performance against Sept-end targets will be reviewed. The sixth initial public offering of this year commenced last week as the book-building of Amreli Steels Ltd concluded on a strong note. On fertilisers’ front, final decision on urea price cut is yet to be cleared.
Oil and Gas Regulatory Authority fixed provisional price for imported liquefied natural gas at $8.64/million metric British Thermal unit, fixing Pakistan State Oil’s margin at 1.82 percent of delivered ex-shipment price.