LAHORE: The KSE 100 index extended its run-up yet again, for the 12 consecutive sessions, and wrapped the week up with 615.28 points or +1.47 per cent at 42,524. This translates to 5 per cent gains in the first 5 trading sessions of the year, 2018, which is the highest in last 15 years.
The market did not seem to shake and rallied on to settle in the green every single session, despite US-Pak tensions over US President’s tweet and news of a halt in military assistance, with a little support form foreign and local institutional buying.
This makes it the 12th consecutive trading session when the market has remained in the positive zone, gaining 4,605 points or 12 per cent. Key factors supporting this rally included: 1) rising oil pricing, and 2) expectations of interest rate hike.
Volumes during the week stayed flat this week declining by 1 per cent WoW while traded value fell 3 per cent WoW.
On Friday stocks including HBL (+2 per cent), UBL (+3 per cent), LUCK (+3 per cent), FFC (+4 per cent) and DAWH (+4 per cent) added 238 points to the index, while PPL (-1 per cent), POL (-1 per cent), MTL (-1 per cent), KEL (-1 per cent) and TRG (-2 per cent) withheld 37 points. On the sector front; commercial banks added 787 points whereas cement and fertilizer added 309 points and 231 points respectively while tobacco and chemical cumulatively withheld 29 points.
Foreigners bought $ 23 million worth of shares during the week against buying of $ 9 million during the last week. On the local front, mutual funds were net buyers of $ 8.8 million whereas individuals and insurance were net sellers of $ 13.2 million and $ 11.7 million respectively.
Meanwhile, during the week, the Economic Coordination Committee (ECC) of the cabinet approved financing plan of a 1.2 bcfd capacity of RLNG pipeline project from Karachi to Lahore. This project will be undertaken by Sui Northern Gas Pipeline (SNGP) and Southern Gas Pipeline (SSGC).
Inflation came in at 4.57 per cent for the month of December, on monthly basis inflation is down 10bps in December.
Technically speaking, the KSE 100 Index has closed above resistance at 20 WEMA (41,532) and 20 Month EMA (41,906). For now, the market bulls seem eager to test next resistance at 42,777 (200EMA on daily) and then at 43,000.
