Bull-run slows down

Moving northward at start, equities at Pakistan Stock Exchange went into the corrective mode to end the week 0.1 percent down at 39,151 points.
"The market's positive momentum slowed down during the outgoing week... after witnessing a strong bull-run in the previous two weeks," viewed Faizan Ahmed of JS Research.
Topline analysts said the market momentum continued from last week at the start of the week with activity from local and foreign investors.
However, they said, some correction was seen towards the end which resulted in the index to decline. At ready-counter, daily trading volumes were recorded averaging seven percent higher on 207 million shares the value of which contracted to Rs13.2 billion or $125.7 million with eight percent decline.
Amongst the major sectors, oil and gas marketing, automobile and power generation and distribution were up 3.5, 3.4 and 1.8 percent, respectively.
The losing issues included tobacco, oil and gas exploration and fertiliser which slid 5.3, 1.6 and 1.2 percent, respectively. The share prices of listed commercial banks stayed flat over last week.
Foreigners appeared as net sellers of $11.5 million portfolios with banks attracting the highest interest with net buying of $9.5 million, whereas, oil and gas exploration and chemicals had net outflow of $17.2 million and $14.0 million.
Analyst Faizan observed investors' attention shifting towards low market cap stocks that, he said, resulted in increase in trade.
Low market cap sectors such as gas utilities, up 9 percent week-on-week (WoW), healthcare, up 7 percent and autos, up 4 percent, remained in the limelight.
On the other hand, heavyweight banks, oil and gas, cements and fertilisers closed the week on a flattish note.
Major news highlights of the week were China showing satisfaction with smooth implementation of CPEC, FBR and Real Estate sector nearing resolution with respect to taxes imposed in the federal budget, further decline of five basis points in T-Bills cut-off yields during last auction, influx of 53,600 car imports recorded in FY16 (+67% YoY), removal of exemption on import duty on semi-finished products of iron or non-alloy steel (duty restored to 30 percent) and increase of Rs5/kg recorded in sugar prices.
"Moving forward, we maintain our bullish stance on the market ahead of result season," said Nabeel Haroon at JS Research.