KARACHI: Pakistan Stock Exchange witnessed bullish trend during the outgoing week ended on Jan 01, on the back of healthy buying mainly by local investors.
BRIndex100 gained 128.37 points on week-on-week basis to close at 4,697.65 points. Average daily trading volumes stood at 460.548 million shares.
BRIndex30 increased by 992.17 points to close at 23,909.18 points with total daily turnover of 258.140 million shares.
KSE-100 index surged by 1,018.03 points or 2.3 percent on week-on-week basis and crossed 44,000 psychological levels to close at 44,434.80 points.
Trading activities slightly improved as average daily volumes on ready counter increased by 4.3 percent to 528.68 million shares as compared to previous week’s average of 506.96 million shares. Average daily trading value on ready counter increased by 2.8 percent and stood at Rs 22.71 billion.
The foreign investors remained net sellers of equities worth $46.22 million as compared to a net sell of $20.44 million in previous week. Total market capitalization increased by Rs 183 billion to Rs 8.132 trillion.
“With a gain of 679 points on the first trading day of 2021, the KSE-100 index closed the week on a bullish note at 44,435 levels having climbed 2.3 percent on week-on-week basis”, an analyst at JS Global Capital said.
The overall bullish sentiment was backed by a number of positive news including extension in the construction sector amnesty, assurance of 01 million vaccine doses from a Chinese firm, the textile sector receiving six months of export orders which led to the Textile Composite sector outperforming the KSE-100, an MoU signed between the government and 17 Paris Club states to defer $800-900 million worth of debt.
The energy chain was buoyed by whispers of agreement over settlement of the circular debt; E&Ps, Refineries, OGMCs and the Power sector all outperformed the KSE-100 index. The Engineering sector posted a green week as domestic prices of long steel continued to rise to pass on the impact of rising raw material prices. Moreover, headline inflation for December 2020 was recorded at 7.97 percent on year-on-year basis compared to 8.35 percent seen in the previous month.
“While nervousness ruled market sentiment in the earlier part of the week with 3 cases of the new found coronavirus strain in Pakistan as well as profit taking by institutional investors, the equity bourse quickly posted a rebound amid extension in the Prime Ministers construction package to 31st Dec’21”, an analyst at Arif Habib Limited said.
“We also highlight that potential partial resolution of the circular debt with installment due to IPP’s within January 2021 aided market momentum”, he added.
Sector-wise positive contributions came from Banks (up 342 points), Fertilizers (up 231 points) and Oil & Gas Exploration (up 202 points) while Power Generation and Distribution declined up 37 points.
Scrip-wise positive contributions were led by OGDC (up 112 points), FFC (up 95 points), MEBL (up 68 points), ENGRO (up 64 points), and PSO (up 63 points). HUBC and KOHC led the negative contributions, declining 43 and 15 points respectively.
Copyright Business Recorder, 2021
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