STOCKS soared by 238 points at the Karachi share market in the week ended Thursday.

The relentless charge of the bulls tossed the KSE-100 index above the 15,000 points level on Thursday. That was the highest ever level achieved by the index in 52 weeks or over four years since April 20, 2008, when the index had peaked to its best ever 15, 667 points.

Although it was a shortened week of just three trading sessions, compared to the normal five trading days, investors who were still jubilant over the higher than expected policy rate cut by the State Bank of Pakistan, went into buying spree. Other factors that fuelled investor optimism included a relative calm on the political front and generally healthy corporate results and handsome payouts.

The tone was set by Pakistan Petroleum which announced 65 per cent cash dividend tied to a surprise bonus issue at 25 per cent (one share for every four shares held). Thus the market witnessed a change in historical trend, when trading activity generally turns dull in the last week of the month of Ramazan.

The volume of business rose 2.6 times over the earlier week to represent average daily turnover of 155 million shares.

Trading value shot up by 103 per cent over the previous week, to $49 million.

Foreign investors were net buyers of $35.6 million worth equity during the week. The amount was inflated as it included one-off $30 million off-market transaction in Colgate Palmolive. In the earlier week, overseas investors had purchased shares worth $5.96 million.

Furqan Ayub, analyst at the JS Global, admitted that that the investor sentiment at the KSE turned positive after the SBP’s decision to chop off the discount rate by 150 basis points (bps), higher than market expectations.

“Sharper cut in policy rates sparked a rally on Monday and also set the tone for the rest of the week,” commented research team at a major brokerage firm.

On the political landscape, a positive twist in the saga on writing letter to the Swiss authorities raised hopes of constructive close to an important issue, and possible relief on friction between the government and the judiciary.

Manager Equity Sales, Mohammad Rizwan at Topline Securities, summed up the market performance during the week with the comments that relative calm on the political front, signs of further improvement in Pakistan-US relationship coupled with above expectation cut in the discount rate created positive vibes amongst the investors.

Major gainers during the week were KESC, Colgate Palmolive, Media Times, Bata (Pakistan) and International Steel, while stocks that suffered heavier losses included Soneri Bank, United Bank, Shell Pakistan, Tri-Pack Films and Dawood Corporation.

Significant financial results announced during the week included those of Pakistan Petroleum, posting earning per share at Rs31.13 for financial year 2012 and distributing cash dividend at 65 per cent alongside a bonus at 25 per cent.

The surprise bonus was warmly received by the investors reflected in the stock price, which climbed by seven per cent over the week.

Allied Bank also announced eps at Rs7.03 for half year 2012 (1H12) and announcing cash dividend at Rs1.50.

The financial figures of Lucky cement that showed eps for FY12 at Rs20.97 with cash payout at Rs6 per share were thought to be in line with analysts’ forecast.

The results of Engro Corporation announced on Thursday showing loss of 67 paisa for 1H12 with nil dividend was below expectations.

Going forward, market experts said that due to the prolonged Eid break, the upcoming week would host only two trading sessions where it would be interesting to see if the market manages to sustain the new highs achieved this week.

The NRO case hearings and terrorist activities could be dampeners on investor sentiments. Yet, several blue chip companies would unveil their financial results and payout, which should keep investors’ interest alive in equity trading.—Dilawar Hussain