RECORDER REVIEW
KARACHI: Pakistan Stock Exchange witnessed positive trend during the outgoing week ended December 30, 2017 on the back of healthy buying in various sectors.
BRIndex100 gained 103.gained 103.34 points on week-on-week basis to close at 4,294.90 points. Average daily volumes increased to 185.056 million shares.
BRIndex30 increased by 338.66 points to close at 21,566.45 points with average daily volumes of 137.910 million shares.
Pakistan’s benchmark KSE-100 index surged by 1000.59 points and closed the week at 40,471.48 points. Trading activities on the ready counter improved as average daily volumes increased by 55.3 percent to 214.52 million shares as compared to previous week’s average of 138.18 million shares. Average daily trading value increased by 53.3 percent to Rs 8.73 billion.
The foreign remained net buyers of shares worth $8.9 million as compared to an outflow of $5.4 million in the preceding week. Total market capitalization increased by Rs 211 million to Rs 8.570 trillion.
“In the backdrop of a relatively calm political environment, positive steps taken by the regulator taking a soft stance (permission of foreign participation in PSX share, approval of category B scrips under MTS) have helped in improving the market sentiments”, an analyst at AKD Securities said. Also, aggressive buying by the mutual funds (net buy: $13.64 million) lent support to the market, he added. Closing all the trading sessions on a positive note, the benchmark KSE-100 index gained 2.54 percent. Performance leaders during the week were CHCC (up 10.8 percent), PIOC (up 14.89 percent), GWLC (up 14.05 percent), FCCL (10.86 percent) and DGKC (up 10.36 percent); while laggards included HBL (down 1.75 percent), NCL (down 1.49 percent), ENGRO (down 0.94 percent), KEL (down 0.63 percent) and MLCF (down 0.48 percent).
An analyst at JS Global Capital said that positivity returned to the bourse ahead of year-end closing, as investors’ looked favorably at the appointment of the new economic team by the government. Valuations turned compelling, attracting value buying during the week. Local companies and mutual funds turned out to be largest buyers with $8.2 million and $13 million worth of net buying, respectively.
Key sectors outperforming the benchmark KSE-100 index during the week were Cements (up 8.6 percent) and Pharmaceuticals (up 3.2 percent).
The outgoing week marks the end of worst year in terms of market performance since 2008 with KSE-100 index plummeting by 15 percent (US dollar terms: negative 20 percent).
