High stride continues

Despite foreign selling, Pakistan Stock Exchange (PSX) witnessed a positive trend due to local investor and institutional support during the outgoing week ended November 25, 2016. The benchmark KSE-100 index surged by 674.72 points or 1.59 percent on week-on-week basis and closed at the highest ever level of 42,999.66 points.
Trading activities on the ready counter also improved as the average daily trading volumes increased by 3.6 percent to 475.32 million shares while average daily trading value surged by 9.6 percent to Rs 15.4 billion. Total market capitalisation increased by Rs 180 billion to Rs 8.757 trillion. The foreign investors remained net sellers of shares and withdrew $37 million from Pakistan stock market.
AKD Securities weekly research report said that the KSE-100 index continued its stride posting new high of 43,000 points during the week. The index increased by 1.59 percent on week-on-week basis and this gain was primarily led by E&P sector (on the back of 4.25 percent increase in crude oil price), cements (on receding coal prices and expectation of robust dispatches growth) and textiles (on expected announcement of incentive package for textiles). An analyst at JS Global Capital said that equity prices continued to trend upwards despite spree of foreign selling at the bourse with benchmark KSE-100 Index closing the week at 43,000 points, up 1.59 percent. Foreigners remained net sellers of US $37m worth of equities mainly due to flight of capital towards developed markets from Frontier and Emerging economies amidst strengthening of the US Dollar. Locals (particularly mutual funds and banks) on the other hand, continued to absorb most of this selling pressure, with major buying interest tilted towards value stocks which fell prey to unabated foreign selling.
Topline Securities' research report said that the index posted a buoyant trend in the outgoing week, as local bourse touched new heights on the back of strong liquidity position of local investors. Volatility in the international crude oil prices fuelled by proposals to be discussed by the Organisation of Petroleum Exporting Companies (OPEC) in its upcoming meeting led interest in the oil stocks as investors went on to take fresh bets in the sector.