Fragile trading witnessed

Pakistan Stock Exchange remained under pressure due to selling in various sectors during the outgoing week ended on December 21, 2018. BRIndex100 lost 61.7 points on week-on-week basis to close at 4,012.73 points. Average daily trading volumes stood at 96.691 million shares. BRIndex30 closed at 21,226.30 points, up 92.92 points with average daily turnover of 60.574 million shares.
KSE-100 index declined by 334.62 points or 0.9 percent on week-on-week basis and closed at 38,251.04 points. Trading activities on ready counter remained thin as average daily volumes decreased by 13.4 percent to 105.12 million shares as compared to previous week's average of 121.32 million shares. Average daily trading value declined by 16.0 percent to Rs 4.71 billion.
The foreign investors remained net sellers of shares worth $12 million during this week. Total market capitalization increased by Rs 22 billion to Rs 7.780 trillion. An analyst at AKD Securities said largely fragile trading coupled with muddled short term sentiments, despite US$ inflows from 'friendly countries' and headway on negotiations with the IMF, the KSE-100 index remained turbulent, closing the week at 38,251 percent.
Increased clarity on points of contention between the IMF and Pakistan's negotiations over an additional facility with FX support in the form of previously pledged US1bn dollars from Saudi Arabia and financing facility worth $3 billion from the UAE failed to raise participation (average daily turnover for the week fell 13.4 percent) and fermented bearish sentiment.
Key performers over the week were MLCF (up 6.9 percent), KEL (up 6.6 percent), ABL (up 5.6 percent) and APL (up 5.2 percent) while laggard included PPL (down 8.8 percent), POL (down 7.6 percent), HBL (down 5.8 percent) and PSMC (down 5.3 percent). An analyst at JS Global Capital said that the KSE-100 index witnessed a decline during this week. Lack of clarity on external financing led market participants to remain cautious during the trading week. On sector-wise performance, Oil & Gas Exploration sector remained lackluster, posting a decline of 6 percent primarily due to 13 percent decline in international oil prices.