KARACHI: Pakistan Stock Exchange witnessed bullish trend during the outgoing week ended on June 5, 2020 on the back of fresh buying mainly by local investors.
BRIndex100 gained 50.97 points on week-on-week basis to close at 3,529.19 points. Average daily volumes stood at 137.281 million shares.
BRIndex30 lost 91.95 points to close at 18316.68 points with average daily turnover of 89.470 million shares.
KSE-100 Index increased by 419.19 points on week-on-week basis and closed at 34,350.42 points. Trading activities remained low as average daily volumes on ready counter decreased by 26.8 percent to 156.50 million shares as compared to previous week's average of 213.88 million shares. Average daily trading value declined by 26.3 percent to Rs 6.44 billion.
The foreign investors remained net sellers of shares worth $15.265 million during this week. Total market capitalization increased by Rs 48 billion to Rs 6.532 trillion.
"Witnessing another week of uncertain policy stances concerning Covid-19 post lockdown scenarios (reflected in 21 percent decline in volumes), with ramifications for commercial activity, employment and aggregate demand, the KSE-100 Index climbed higher by 1.24 percent on week-on-week basis," an analyst at AKD Securities said.
This continues positive or flat returns for the KSE-100 index to a second sequential week, only the fourth time period gains have held beyond two or more sequential weeks during CY20TD, with the index down 15.7 percent in current year-to-date.
Major gainers during the week were ANL (up 20.2 percent), ABOT (up 12.2 percent) and THALL (up 11.0 percent), while laggard were YOUW (down 8.9 percent), BNWM (down 7.4 percent), AICL (down 5.8 percent) and FATIMA (down 5.1 percent).
An analyst at JS Global Capital said that the week following Eid holidays saw the market eking out a flattish 1.2 percent return, closing the week at 34,350, up 419 points. Stagnancy was always on the cards, considering the rally witnessed in previous weeks, leading the market to take a breather.
One theme visible during the week was budget related news and proposals for various sectors, which as always had an effect on market sentiment. With the number of Corona infected patients increasing at a rapid pace post-Eid (as most were expecting), there were fears in some corners of yet another lockdown. However, ultimately, the government eased lockdown restrictions.
Among major sectors, Banks (up 4.6 percent) were outperformers with interest arising due to attractive valuations and rumours of some relief in the upcoming budget. On the other end of the spectrum were Cements (down 0.8 percent) where the 38 percent reduction in dispatches was a major contributing factor.
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