RECORDER REPORT
KARACHI: Pakistan Stock Exchange witnessed positive trend during the outgoing week ended March 24, 2017 on the back of fresh buying by both local and foreign investors.
The benchmark KSE-100 index increased by 561.70 points on week-on-week basis and closed at 48,971.05 points.
Trading activities on the ready counter also improved as average daily trading volume increased by 38.9 percent to 257.78 million shares as compared to previous week’s average of 185.55 million shares. Average daily trading value on ready counter, however, decreased by 7.6 percent to Rs 10.51 billion. Total market capitalization increased by Rs 116 to Rs 9.647 trillion.
The foreign investors also remained net buyers of shares worth $3.47 million during this week as compared to an outflow of $11.07 million recorded in previous week.
An analyst at AKD Securities said that the KSE-100 index gained 1.16 percent on week-on-week basis as silence over Panama?case verdict and slow progress on margin financing product pushed concerns about the same to the background. However, investors retained caution with activity remaining lackluster during the week where daily average volumes stand at 257.8 million shares. KEL led volume charts (140.9 million shares) as NEPRA determined the company’s 7 year multi?year tariff (MYT) reducing its base tariff from Rs 15.57/kWh to Rs12.07/kWh which was followed by news reports of PM Nawaz Sharif forming a committee to review the tariff after a meeting with Chairman of SPIC (Shanghai Electric’s parent company). Stocks leading the bourse were SNGP (up 6.95 percent), AGTL (up 6.42 percent), MEBL (up 5.03 percent) and EFERT (up 4.82 percent). On the other hand, laggards were KEL (down 5.24 percent), ICI (down 2.68 percent), UBL (down 1.79 percent) and APL (down 0.83 percent).
An analyst at JS Global Capital said that the market continued to display a jittery texture during the week, albeit closing at 48,971 points. Average daily volumes showed an improvement of 38.9 percent, rising to 258 million shares. However, the volumes remained well below FY17TD average daily volumes of 376 million, showing investor’s nervousness over the past few weeks where all eyes remained fixed on expected Supreme Court ruling in the Panama-gate case. Smaller sectors such as Glass & Ceramics and Pharmaceuticals were in the limelight during the week, outperforming the KSE-100 index by 6.7 percent and 5.4 percent, respectively. Among pharmaceuticals, GLAXO (up 4.0 percent) was in the limelight, rallying on commencement of trading of its consumer arm, GlaxoSmithKline Consumer Healthcare (GSKCH) following its demerger with the pharmaceutical division.
An analyst at Arif Habib Limited said that growing sentiments relating to a leverage product for investors helped the index gain momentum, in addition to renewed foreign interest that resulted in the market posting a gain of 562 points. Upside to the index was obliged by the Pharmaceuticals (93 points), Commercial Banks (67 points), Fertilizers (64 points) and Oil and Gas Explorations (52 points). SEARL and SNGP towed the index, up by 77 points and 40 points, respectively. While UBL, KEL and LUCK contributed negatively with 40 points, 26 points and 11 points respectively.
