Pakistan shares market gained 0.7 percent or 227 points to close at 32,669 during the week that ended on Friday March 11. Topline analysts said jubilant at the start, the market saw lackluster activity during rest of the week.
"Investors remained wary of taking fresh positions and largely booked profits," they viewed.
Researchers at AHL Research attributed the bullish trend to index-heavy oil and gas sector which provided impetus. "The index enjoyed a run up of 10 green days before the bears made a mark midweek drawing it down 289 points in the last three days," they said. The week under review witnessed international crudes rallying to cross the $40 per barrel mark. "Chatter around production freeze and lower US inventory data were the contributing factors in the resurgence of international oil price," said the market observers.
Abdul Azeem of Spectrum Securities said the bourse rallied in first session with KSE-100 index crossing the 33,000 points barrier on the back of foreign buying mainly in fertiliser and cement sectors, acceleration in oil prices and continuity of positive sentiments in the market. However, he said, the second day experienced volatility amid local selling pressure.
Daily trading volumes averaged 30 percent higher on 175 million shares the value of which appreciated 10 percent to Rs9 billion.
Up 7 percent, fixed line telecommunication led the most gaining sectors with food producers and oil and gas scrips growing 4.8 and 2.9 percent. General industrials and automobile and parts fell 3.3 and 2.6 percent.
Construction sector also remained in limelight on the back of "highest" 3.45 million tons cement sales in Feb'16 amid booming demand on local front. Fertiliser sector bore selling pressure as the government showed concern over inflated urea prices and cartelization by local players.
Foreign investors ended the week on a positive note by doing net buying of $4.1 million portfolios. Cement sector saw major inflows of $6.1 million compared to the banks' $8.6 million selling.
"Foreign investors joined the rally made by local players in the past week with the former coming as a net buyer," said Yawar Uz Zaman of Shajar Research. "We believe market to remain positive in the upcoming week as foreign flows to take front seat going forward," said Zaman of Shajar Research.
However, the analyst said, lack of triggers may pull down trading volumes. Other major highlights of the week were Engro Foods looking to set up large-scale dairy farms, Lucky Cement being licensed to generate 660MW coal power, POL sales growing five percent in eight months, British Brent rebounding to 2016 peak level of $40 and remittances growing 6 percent to $12.7 billion.
Comments
Comments are closed.