Pakistan Stock Exchange (PSX) remained under pressure during the outgoing week ended on March 10 and the benchmark KSE-100 index declined by 432.06 points or 0.87 percent on week-on-week basis to close at 49,191.75 points.
Trading activities also remained thin as average daily trading volumes on ready counter decreased by 21.1 percent to 237.62 million shares as compared to previous week's average of 302.02 million shares. Average daily trading value declined by 20.3 percent to Rs 11.43 billion. Total market capitalisation declined by Rs 118 billion to Rs 9.697 trillion.
The foreign investors emerged net buyers of shares worth $15.41 million during this week as compared to an outflow of $32.68 million recorded during previous week.
An analyst at AKD Securities said that after posting an encouraging recovery last week (2.8 percent), the KSE-100 failed to maintain the positive trend where the bourse dived back in to the red zone with the index closing at 49,192 points (down 0.87 percent), owing to reported action by SECP against in-house financing, growing uncertainty with regards to Panamagate case and sudden drop in oil prices midweek (Brent down 6.7 percent). Performance leaders during the week were FFBL (up 5.2 percent), HMB (up 3.7 percent), SHEL (up 3.5 percent), MCB (up 2.7 percent) and ICI (up 2.7 percent), while laggards included LOTCHEM (down 10.4 percent), EPCL (down 10.2 percent), NCL (down 5.5 percent), FATIMA (down 5.0 percent) and PSMC (down 4.7 percent).
An analyst at JS Global Capital said that uncertainty regarding Panama case judgement and SECP's crackdown over in-house badla financing continued to haunt investors this week, taking KSE-100 index down by 0.9 percent or 432 points to close at 49,192. One positive development, however during the week was release of 90 percent PSX sale proceeds to the brokerage houses leading to improved liquidity. Fauji Fertilizer Bin Qasim Ltd (FFBL) remained the top performer, gaining 5.2 percent during the week on rumors of possible increase in local DAP prices while the overall sector remained jittery following mixed news flow on delay in reimbursement of subsidy claims and weak urea offtake during February 2017.
An analyst at Arif Habib Limited said that the week commenced with a jaded market under persistent pressure amidst uncertainty over pending decision of the longstanding panama case, and continued measures taken by the regulatory authority in an effort to improve transparency of the stock market and resolve ongoing leverage issues. Consequently, the bourse (KSE-100) made a dip of 281 points on Monday, closing for the day down 189 points. The following two days market showed some resilience closing up 18 points and 302 points, respectively, mainly with the support from Banking, OMC, and Fertilizer sectors. On Thursday, while the market made its weekly high of 49,857 points, the positive trend broke its way into the red on the back of fall in oil prices with OMCs dragging the index down by 52 points. Friday carried the sentiments from the prior close dipping another 201 points, closing the bourse for the week at 49,192 points.
Individuals remained the largest sellers with a net sell of $23.58 million whereas mutual funds and companies posted a net buy of $8.64 million and $4.34 million, respectively. The top performing sectors for the week were Banks, Chemical, and Leather - contributing 12 points, 10 points and 9 points respectively. Laggards remained E&Ps, Technology, and Refinery dragging the index down by 191points, 48 points and 44 points, respectively.
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