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ISE sets three records in last two weeks

SOHAIL SARFRAZ

ISLAMABAD: Islamabad Stock Exchange made history in the last two weeks with three different records of highest increase in index where bulls executed sizeable deals in the Communication, Fuel and Energy sectors.

Seasoned brokers said that ISE Network index took a big jump of 156.23 points with increase in overall turnover to 10.84 million shares on Wednesday (January 12). The market witnessed aggressive buying in PSO, PTCL and ICI Pakistan as the horizon of trade expanded to (147) active companies.

ISE index hit another record high on Friday (Jan 14) where trade volume shot up to 12 million shares. ISE price-based index witnessed a big boom of 172.73 points as heavyweights of the market scored handsome gains following participation of foreign investors and commercial banks in the capital market.

Last Monday, ISE index broke all previous records with historic gain of 234 points with volume soaring to 22.364 million shares. The rumour of signing CTBT, rapid privatisation of PTCL and pay out announced by PSO jacked up the prices across the ready board.

Downward technical correction contracted the volume of ISE to 11.548 million shares as profit-taking in core scrips resulted in a close fight between bears and bulls last Tuesday.

Bulls demonstrated their presence on last Wednesday as ISE Network index surged by 95.60 points with buying spree in shining stars.

The overall turnover expanded to 20.360 million shares on the decision of SBP to allow banks to repatriate dividend amounts to foreign-funded brokerage houses without prior approval from the central bank.

Last Thursday, trade volume of ISE went up to 24.043 million shares as the computerized index showed increase of 137.77 points.

The upward surge of the index continued on the last working day at the ISE as composite index of the bourse moved up to 151.46 points. The overall volume contracted to 20,714,440 shares and 158 companies participated in changing hands activity on last Friday.

Zahid Latif Khan of Zahid Securities hoped that the process of speedy privatization of public entities through stock exchanges and introduction of new laws to ensure transparent trading of shares would further jack up trading in all three bourses of Pakistan.

The Islamabad Stock Exchange touched the new century's highest level during the past two weeks as all volume leaders staged handsome rallies due to the foreign investors' confidence in capital market and practical decisions of the present government, he added.

Mohammad Saghir of SHAZ Investment Corporation said that there was another record making week for the stock exchanges of Pakistan. The bullish sentiments were unabated even by the rumours of hijacking on last Thursday. The rise in price and volume of blue chips like PTC, Hubco, Fauji Fertilizer, Adamjee Insurance, Shell, Telecard etc, confirmed the buying interest of foreign investors and financial institutions. Moreover the decrease in bank's profit payouts and diminishing chances of major devaluation of Pak rupee, has shifted more funds towards the stock market.

The long-term growth of the stock market is looking positive. The resumption of international financial institutions loan-aids indicated their confidence in growing economy of the country, he stated.

Therefore, in a reasonable timeframe, the present military regime will be able to pull out Pakistan from the worst crises in its history. The coming weeks are also looking positive for the stock market, as the process of privatization is on cards and will help government to reduce its burden of foreign loans.

Saghir said that the only major unresolved issue of Hubco is also moving towards an amicable resolution and hopefully will be resolved in coming weeks. That will give the stock market a major upward rally as this will be another confidence building measure for foreign investors.