KARACHI: Pakistan Stock Exchange witnessed positive trend during the outgoing week ended on Nov 06, on the back of buying by local investors and institutions.
BRIndex100 gained 90.58 points on week-on-week basis to close at 4,227.72 points. Average daily volumes stood at 331.850 million shares.
BRIndex30 increased by 425.45 points during this week to close at 21,487.11 points with average daily turnover of 228.671 million shares.
KSE-100 index surged by 843.61 points on week-on-week basis and closed at 40,731.61 points. Trading activities however remained low as average daily volumes on ready counter decreased by 21.6 percent to 368.24 million shares as compared to previous week's average of 469.60 million shares. Average daily trading value declined by 33.3 percent to Rs 12.58 billion.
The foreign investors however remained on the selling side and withdrew $5.498 million from Pakistan capital market. Total market capitalization increased by Rs 137 billion to Rs 7.536 trillion.
"The market started off on a weak note, with the market participants pricing in rising domestic Covid-19 cases and uncertainty on the US election outcome," an analyst at AKD Securities said. The KSE-100 index shed 775 points (down 1.94 percent) on the first trading session of the week. Softer than expected inflation reading (8.9 percent on year-on-year basis against 9.2 percent consensus estimate), encouraging volumetric offtake in Cement and OMC sectors, electricity package for the SME (50 percent tariff reduction on incremental usage) and general industry (25 percent tariff reduction on incremental usage), and rebound in global markets turned the tide, with KSE-100 index registering 3.5 percent gain on the second trading session, paring all previous day losses, he added.
After a brief respite on Wednesday, the domestic market regained momentum in line with its global peers, pricing in relatively better visibility on the US election outcome, with Democrats likely to take control of the White House and Republicans expected to maintain their majority in Senate. Overall, the KSE-100 index gained 2.11 percent on week-on-week basis (up 844 points) to close the week at 40,732 points.
Performance-wise, TRG (up 17.1 percent), HMB (up 15.6 percent), LOTCHEM (up 14 percent), FFBL (up 10.9 percent) and POL (up 9.6 percent) were the top gainers, while laggards included GATI (down 7.2 percent), MUREB (down 4.0 percent), APL (down 3.2 percent), ANL (down 2.8 percent) and PAKT (down 2.8 percent).
An analyst at JS Global Capital said carrying from last week, the market resumed on the back foot in the first trading session, but recovered in typical fashion, which was in tandem with rising global markets and aided by some positive sentiment from inflation readings, which were lower than the previous month.
There was an element of background noise from US elections and the rising Covid-19 toll but this was drowned out to a large extent via incoming corporate results and some good news, such as PKR/USD dropping to below Rs 160 and the trade deficit shrinking 28 percent on month-on-month basis in October. Eventually, the market closed positive, up 2.1 percent on week-on-week basis on 40,731 levels.
Outperforming sectors included Engineering (up 20.4 percent), Refineries (up 5.4 percent), E&Ps (up 2.5 percent), Automobile Assemblers (up 2.4 percent) and Textile Composite (up 4.0 percent).
Copyright Business Recorder, 2020
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