RECORDER REVIEW

KARACHI: Pakistan Stock Exchange (PSX) witnessed a mixed trend during the outgoing week ended on January 13, 2017.

At the end of the week, the index closed at 49,210.50 points, with a net gain of 172.27 points. Average daily trading volumes on the ready counter increased by 19.7 percent to 488.87 million shares. Average daily trading value surged by 6.6 percent to Rs 22.68 billion against previous week’s Rs 21.27 billion. Total market capitalization increased by Rs 64 billion to Rs 9.859 trillion.

The foreign investors remained net sellers of shares and withdrew $47 million from Pakistan stock market.

An analyst at JS Global Capital said that the local bourse largely remained range-bound on selling pressure from both local and foreign investors, with the benchmark KSE-100 index closing at 49,210 points, up 0.35 percent or 172 points. Two major developments during the week included cessation of subsidy on fertilizers (barring imported urea) followed by increase in prices by local manufacturers and announcement of much awaited Rs180 billion exports package by the government.

Hub Power Company attracted investors’ interest post announcement of increase in its stake in 2x660MW coal-fired project to 47.5 percent from 26 percent previously and its share increased by 5.3 percent during the week. Release of official auto numbers by PAMA for December 2016 attracted some activity in select stocks among automobile sector. Announcement of additional gas supply to Engro Fertilizer (EFERT) from Mari Field also garnered investors’ interest in EFERT and its parent company ENGRO.

An analyst at AKD Securities said with bouts of profit-taking dampening an otherwise strong rally, the KSE-100 index grew 0.35 percent, closing at 49,211 points. Price increases from steel manufacturers, rally in dividend paying stocks before results season, announcement of an export promotion textile package and reversal in fertilizer subsidies revived investor participation, raising average daily turnover for the week by 19.7 percent.

An analyst at Arif Habib Limited said that the week started with euphoria surrounding the much awaited export incentive package, which was announced on Tuesday. The package is expected to reduce the cost of doing business for exporters and aid them in competing against regional peers. While the package was initially cherished by the market participants, profit-taking was in order and soon the bears took over and dragged the textile scrips.