Mixed trend witnessed

Pakistan Stock Exchange witnessed a mixed trend during the outgoing week ended on March 3, 2017. However, healthy buying during last two days of the week supported the KSE-100 index to close in positive at 49,623.81 points, with net gain of 615.81 points or 1.3 percent on week-on-week basis.
Trading activities on the ready counter remained low as average daily trading volumes during the outgoing week declined by 6.4 percent to 301.02 million shares as compared to previous week's average of 321.77 million shares. Average daily trading value decreased by 1.0 percent to Rs 14.34 billion. Total market capitalisation increased by Rs 111 billion to Rs 9.815 trillion.
The foreign investors remained net sellers of shares worth $32 million during this week and withdrew their investment from Pakistan stock market.
An analyst at AKD Securities said that the KSE-100 Index continued to experience volatility during the week on account of reported action by the SECP against in-house financing and uncertainty with regards to Panamagate case. Though the market fell initially to a 1 month low on first day of the week, it recovered thereafter closing at 49,624 points (up 1.26 percent) on rumours of a new leveraged product and SECP clarification on measures/regulatory oversight over brokerage firms. Leaders during the outgoing week included LOTCHEM (up 22.11 percent), EPCL (up 15.41 percent), AGTL (up 10.54 percent), SNGP (up 9.87 percent) and ICI (up 9.44 percent) while laggards included NCL (down 6.46 percent), HMB (down 3.41 percent), PIOC (down 2.43 percent), DAWH (down 2.30 percent) and PPL (down 2.21 percent).
An analyst at JS Global Capital said that asset values at KSE-100 index remained volatile during the first half of the week with hefty sell-offs amidst crackdown of regulatory watchdog (SECP) on some brokerage houses who were allegedly involved in misuse of in-house financing, fraud and deceptive business practices. The market eventually recovered after progress/developments on MFS product. Moreover, the FTSE in its semi-annual review included six Pakistani stocks into its World Asia-Pacific (ex-Japan) index, which are HBL, MARI, SEARL, EFERT, FCCL and NML.
An analyst at Arif Habib Limited said that trading at the local bourse commenced with dampened sentiments given investors chose to stay at the periphery amidst skepticism over panama decision and continued unresolved issues pertaining to leverage. However, by mid-week, narrative of the index witnessed a turnaround as market participants hawkeyed attractive valuations and stockpiled scrips. Above all, consensus reached between brokers and the respective regulatory authority over leverage played out as a key trigger. The rally was further supplemented by the news of additional six stocks (namely HBL, MARI, SEARL, EFERT, NML, and FCCL) to be included in the FTSE Global Equity Index Series (Asia Pacific ex-Japan region). Activity at the index during the week was primarily dictated by the Commercial Banks (170 points) and Oil and Gas Marketing sector (77 points) In contrast, sectors that slacked during the week were Food & Personal Care and Cement Sector each eroding 36 points and 10 points, respectively.
An analyst at BIPL said that the index started on a bearish note as political noise kept the index in check, however, the market sentiments started to change towards the latter half of the week. The index closed the week at 49,623 points, marginally up by 1.3 percent. Bearish momentum from last week continued in the first two trading sessions as a result of selling pressure amid political noise. However, the joint press conference by the SECP and PSX aimed at pacifying investors' concerns over crackdown on brokers helped instill confidence. The news of six blue-chip companies being included in FTSE global equity index further helped improve market sentiments even further.