RECORDER REVIEW
KARACHI: Pakistan Stock Exchange witnessed mixed trend during the outgoing week ended on November 22, 2019.
BRIndex100 gained 32.44 points on week-on-week basis to close at 3,979.20 points. Average daily trading volumes stood at 284.637 million shares.
BRIndex30 however lost 128.17 points to close at 20,491.62 points with average daily turnover of 179.676 million shares.
KSE-100 index increased by 341.90 points on week-on-week basis and closed at the level of 37,925.79 points. Trading activities on the ready counter also improved as average daily volumes increased by 6.4 percent to 330.93 million shares as compared to previous week’s average of 311.17 million shares. Average daily trading value increased by 15.3 percent to stand at Rs 11.44 billion during this week.
Total market capitalization increased by Rs 33 billion to Rs 7.247 trillion.
An analyst at AKD Securities said a volatile week for the market where the KSE-100 index touched a low/high of 37,101.3/38,564.4 points closing at 37,926 points driven by expectations surrounding monetary policy with further assistance gained from release of current account position. To recall, the country posted $99 million current account surplus in October 2019 after a gap of more than four years.
Expectations of rate cut died soon as the latest T-bill auction witnessed a marginal uptick in yields (3month/12month: plus 30/46bps).
Amongst major sectors, a pullback was witnessed in Automobile (up 3.1 percent) and related sectors (up 7.8 percent), followed by Power (up 3.1 percent on possible issuance of power sukuk for resolution of circular debt after getting approval for increase in the government guarantee limit by the IMF) and Fertilizers (up 1.7 percent).
Inflows from foreigners ($8.4 million) together with net buy of individuals ($11.9 million) absorbed selling by Banks and Others ($17.3 million) and Insurance ($2.62 million).
Top performers in AKD Universe were GWLC (up 10.32 percent), EFERT (up 9.34 percent), HUBC (up 7.41 percent), FFC (up 6.31 percent) and PSO (up 4.87 percent), while laggards were, CHCC (down 8.17 percent), FFBL (down 6.51 percent), FCEPL (down 5.58 percent), PSMC (down 4.85 percent) and MLCF (down 3.44 percent).
An analyst at JS Global Capital said it was a roller coaster week as sharp ups and downs punctuated the daily trading sessions.
During the week, the overall sentiment remained positive, evident from 6.4 percent and 15.4 percent growth in average daily volumes and average daily trade value, respectively. The improved sentiment comes due to the view that the economy is finally reaching stabilization after painful consolidation measures. Another positive for the equity market was the current account finally eking out a surplus after a lengthy period of 3.5 years. Textile exports recorded an improvement of 14 percent on month-on-month and 7.0 percent on year-on-year basis during October 2019, with particularly strong growth in value added segments.
