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Up and up all the way
END June review
By M. Bilal Aftab
Karachi stock market continued its upward journey through the month of June 2003. All the stock market indicators remained highly bullish achieving new records of high levels.
The News-Prime Bank Composite Index of VIS gained tremendously during June and closed at 5834.4 points with an over-the-month increment of 348.7 points. This was about 6.4 per cent of its end-May close of 5485.7 points. During June, the index topped at 5859.3 points which was on the 25th of the month whereas the lowest recording of 5467.0 points was made on the 3rd of the month.
On 13 out of 21 days of trading during June, the index closed in the positive column whereas it lost value at the end of the remaining eight days of the month.
KSE-100, the market capitalization based index of Karachi Stock Exchange, closed at its all-time high value of 3402.5 points registering a substantial month-over increase of 303.5 points or 9.8 per cent over its May's closing of 3099.04 points.
The two major components of the Composite Index, Financials and Industrials moved in tandem with the Composite as both registered gains of over 6 per cent during the period under review.
Financials index closed at 3781.8 points and increased by 226.4 points or 6.4 per cent over its end-May's close of 3555.4 points. Industrial index, on the other hand reached 6757.15 points with a win of 428.2 points or 6.8 per cent over its preceding month's close of 6328.9 points.
An overall bullish mood of the traders could also be gauged from the fact that there were as many as 30 out of 36 sector indices of the News-Prime Bank Index family that posted gains during June 2003 whereas only six lost value.
Five out of six sector indices on the financials side closed positively during the month. The index of 'Brokerage Firms' sector continued to top the list with an over-the-month increment of over 16 per cent. The only financial sector index that closed in the negative column was that of 'Insurance Companies' which dropped by about 1.3 per cent while closing at 542.9 points.
On the industrial side, it was the index of 'Cement & Building Products' sector that remained the winner with an increment of about 30 per cent followed by that of 'Glass & Ceramics' sector. During the month, the index of 'Toiletries' sector dropped the most, losing about 9 per cent and ended up at 2624.3 points.
Other Market-Indicators:
Sentiment indicators of the Lahore and Islamabad Stock Exchanges also displayed bullish trends during June as both the markets followed the overall trends that prevailed in Karachi. The LSE-25 index crossed the 2000 points mark and closed at 2034.6 and recorded a rise of 170.6 or 9.2 per cent over 1864.0 points it marked at the end of May 2003. Similarly, the ISE Composite index also showed positive trends. The ISE Composite crossed the 8000 points mark during June and closed at 8210.1 points with a gain of 10.9 per cent over the month.
The average daily turnover at the KSE shot up tremendously during June 2003. On an average, 376.8 million shares changed hands on each of the 21 days of trading in June as against 222.1 million shares recorded for 20 days of May 2003.
News-Prime Bank Indexes Major Indexes
Major Index Closing as on Change over
June 30, 2003 May 31, 2003
Composite 5,834.4 348.7 (6.4%)
Financials 3,781.8 226.4 (6.4%)
Industrials 6,757.2 428.2 (6.8%)
Base: 10,000 June 29, 1994
Top Percentage Gaining Sector Indexes
Sector Index Closing as on Change over
June 30, 2003 May 31, 2003
Cement & Bldg Products 150.0 34.5 (29.9%)
Glass & Ceramics 699.1 111.5 (19.0%)
Brokerage Firms 529.6 73.3 (16.1%)
Energy 371.4 50.6 (15.8%)
Vanaspati & Allied 606.9 76.4 (14.4%)
Base: 1,000 June 29, 1994
Top Percentage Losing Sectors Indexes
Sector Index Closing as on Change over
June 30, 2003 May 31, 2003
Toiletries 2,624.3 -254.2 (-8.8%)
Jute 1,135.2 -57.1 (-4.8%)
Insurance 542.9 -7.3 (-1.3%)
Apparels 267.5 -2.6 (-1.0%)
Food & Confectioneries 1,227.5 -6.1 (-0.5%)
Base: 1,000 June 29, 1994