Massive recovery witnessed

Sentiments at Pakistan Stock Exchange (PSX) were remained positive during the outgoing week ended on November 29, 2019.

BRIndex100 gained 139.8 points on week-on-week basis to close at 4,119.00 points compared to 3,979.20 a week earlier. Weekly volume at BRIndex100 was 1527 million shares.

BRIndex30 increased by 841.13 points to close at 21,332.75 points with weekly turnover of 999.5 million shares.

During the week, the benchmark KSE-100 index crossed 39,000 level after eight months and closed at 39,287.65 points, increased by 1,362 points or 3.6 percent (WoW). During Nov'19, KSE-100 index increased by 5,084 points or 14.9 percent MoM. This is highest ever monthly return after May'13.

Trading activities on the ready counter also improved as average daily volumes for the outgoing week were up by 5 percent to 348 million shares likewise value traded increased by 8 percent to USD 80 million. Total market capitalization increased by Rs 264 billion to Rs 7.512 trillion end of the last week up from Rs 7.248 trillion end of the previous week.

An analyst at Arif Habib Research said that last week trading commenced on a positive note attributable to State Bank leaving discount rate unchanged which bode well for local bourse.

However, the index lost 400 points on Tuesday as Supreme Court took notice on Chief of Army Staff (COAS) appointment. Meanwhile, index recovered after considering this appointment as a procedural issue along with continuous surge in foreign investment in T-Bills which crossed one billion dollar mark leading to rising foreign exchange reserves improving investor's sentiments.

As a result, the benchmark KSE-100 index showed massive recovery during the week and closed at 39,000 points level.

According to Arif Habib Research Contribution to the upside was led by Commercial Banks (+522pts) due to attractive valuation, Cement (+120pts) amid robust sales numbers, Fertilizer (+116pts), Automobile Assemblers (+80pts), and Chemicals (+75pts).

Scrip wise major gainers were HUBC (+132pts), FFC (+94pts), PSO (+40pts), LUCK (+32pts), and NATF (+29pts). Whereas, scrip wise major losers were HBL (-63pts), BAHL (-26pts), and PIBTL (-15pts).

An analyst at JS Global Capital said that despite some challenges that fell upon the market during this week, the KSE-100 ploughed ahead in its relentless pursuit of the 40,000 mark (and perhaps beyond) and now within touching distance, closing positive for the fifth week in a row.

They said that on the political front, there were some jitters pertaining to the extension granted to the Chief of Army Staff. Yet after news of the 6-month extension, those negative vibes died away quickly. On the economic front, the SBP decided at the close of last week to maintain a status quo stance on the policy rate.

On the international front, foreigners were net sellers with total net selling of US$8.1 million, whereas in the local market, mutual funds and individuals were the major buyers with net buying of US$ 11.1 million and US$7.3 million, respectively.

Other news during the week included Pakistan to issue US$1 billion Panda bond, SBP reserves increase by US$240 million WoW, and Foreign inflows in T-Bills cross the US$ 1 billion mark in FY20 so far.