RECORDER REVIEW

KARACHI: Bearish trend was witnessed on Pakistan Stock Exchange (PSX) during the outgoing week ended on July 14, 2017 and the benchmark KSE-100 index decreased by 884.71 points or 1.96 percent on week-on-week basis to close at 44,337.44 points.

Trading activities however slightly improved as average daily trading volumes on ready counter increased by 5.2 percent to 174.66 million shares as compared to previous week’s average of 165.97 million shares. Average daily trading value increased by 4.6 percent to Rs 9.71 billion.

Total market capitalization decreased by Rs 170 billion to Rs 9.109 trillion. The foreign investors emerged net buyers of shares worth $989,491during this week.

An analyst at AKD Securities said that deteriorating investor confidence spilled over from an unstable political picture as the JIT report submission and political response from the same, prompted ‘wild’ intra-day moves. The market hit calendar year to date (CYTD) low of 43,043 points during the week ending at 44,337 points, losing 885 points. Scrips losing most during the week were HCAR (down 12.64 percent), PSMC (down 10.56 percent), CHCC (down 9.36 percent), ICI (down 7.08 percent), LOTCHEM (down 6.93 percent), whereas gainers were GWLC (up 4.43 percent), EFERT (up 3.99 percent), NBP (up 3.93 percent), PPL (2.99 percent) and FFC (up 2.47 percent).

An analyst at JS Global Capital said that the political crisis in the country continued to unfold during the week as Joint Investigation Team (JIT) formed by the Supreme Court to investigate Sharif family made its findings public. Amidst calls for resignation by the opposition parties, PM Nawaz and federal cabinet took a hard stance and snubbed speculations of resignation with firm reaffirmations to challenge all aspects of the report in the Supreme Court (SC). Investors are now eagerly looking towards the Supreme Court with hearings on JIT report findings set to start from Monday. The uncertainty instilled fears, which continued to shake the bourse during the week with benchmark KSE-100 index closing at 44,337 points, levels seen in December 2016. Almost all major sectors such as Oil & Gas exploration (down 0.1 percent), banks (down 0.6 percent), OMCs (down 2.7 percent), fertilizers (down 2.0 percent), cements (down 2.3 percent) and automobiles (down 7.4 percent) witnessed bloodbath during the week.

An analyst at Topline Securities said that the index shed 885 points in the outgoing week to close at 44,337 point level amid uncertainty stemming from political noise. After witnessing one the worst sessions since 2009 on Tuesday, 11th July when the KSE-100 tanked 4.7 percent after an investigation into the incumbent Prime Minster and his family’s assets was made public; last trading day’s session saw recovery with the market gaining 1.26 percent.