Pakistan equity market performed well in spite of hefty foreign selling. The benchmark KSE-100 index increased by 271.24 points or 0.63 percent to close at its highest ever level of 43,270.90 during outgoing week ended on December 2, 2016.
The rally was mainly led by oil and gas sector companies due to OPEC decision to cut their production.
Trading activities on the ready counter, however, remained thin as average daily trading volumes declined by 2.4 percent to 463.80 million shares as compared to previous week's average of 475.32 million shares. Similarly, trading value at the ready counter also decreased by 2.2 percent to Rs 15.07 billion. Total market capitalisation increased by Rs 31 billion to Rs 8.788 trillion.
An analyst at AKD Securities said delivering persistent returns despite the recent spate of foreign selling; the index grew 0.63 percent on week-on-week basis. Supported by OPEC's decision to restrict crude output and resulting movement in global benchmarks (Brent/WTI gained 11.8/8.4 percent), upstream Oil & Gas climbed higher.
Key gainers at the bourse during the week were EPCL, MTL, ICI and ENGRO, whereas laggards were NCL, NML and HCAR. An analyst at JS Global Capital said once again, the PSX exhibited resilience against incessant foreign selling as the benchmark KSE-100 index closed 0.6 percent higher in spite of net foreign selling of $34 million during the week. Locals (particularly Mutual Funds and Individuals) continue to absorb most of this selling pressure, with major buying interest witnessed in oil stocks as OPEC decided to cut its production for the first time in eight years to send international oil prices soaring. Other major sectors that outperformed during the week were Glass and Ceramics due to expected uptick in construction activity and Fertilizers on the back of rising international urea prices and last week's cut in gas prices. On the other hand, Banks, owing to no change in Policy Rate by the Central Bank over the weekend and Textiles because of delay in anticipated export-oriented package by the government were under performers.
An analyst at Arif Habib Limited said that the local bourse continued its rally into the record highs closing at 43,271, despite foreign selling. Pertinently, major foreign sell was witnessed under Banks ($8.35 million), E&Ps ($8.13 million) and Textile Composites ($5.64 million), along with other sectors ($10.17 million).
The BIPL Securities weekly research report said that the index conquered new territory this week, closing at 43,303pts, as local investors scooped up the losses triggered by massive foreign selling during the week. The volumes were mainly contributed by small and mid-cap stocks during the week, while cautious activity was witnessed in main board.
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