KARACHI : KSE 100-index posted return of 15pc in May 2013 as investors cheered the change in political set-up after May-11 elections. Further support was added by strong foreign flows and benchmark KSE 100-index gained 2,841 points in May 2013. Bifurcating the numbers, index rallied 934 points before elections while post-elections it gained 1,907 points. This is the highest monthly return posted by the market since March, 2009, where the market was in the recovery phase post 2008 crisis.

Average daily traded volume stood at Rs10.1b (US$102.8m) during the month, up 96% against the 12 month per day average of Rs5.2b (US$52.4mn), while they are the highest since October, 2009.

In share terms, average volume stood at 340.7m a day in May. Net foreign buying recorded at US$265m, which included US$172m worth of net buy in ULEVER, according to NCCPL data (May 30, 2013).

Ex-ULEVER transaction, we estimate foreigners bought shares worth US$203m and sold US$110mn worth of shares rendering into net buy of US$93mn approximately.

With new political setup coming in, re-rating of the market is a possibility, however, it is greatly dependent on the structural reforms that the incoming govt will make.