After six weeks of decline, Pakistan Stock Exchange bounced back during the outgoing week ended December 22, 2017 on the back of healthy buying mainly by local investors and institutions. BRIndex100 gained 104.05 points on week-on-week to close at 4,191.56 points. Average daily volumes stood at 119.140 million shares.
BRIndex30 increased by 968.07 points to close at 21227.79 points with average daily turnover of 89.398 million shares. Pakistan's benchmark KSE-100 index surged by 824.99 points on week-on-week basis and closed the week at 39,470.89 points. Trading activities slightly improved as average daily volumes on ready counter increased by 2.3 percent to 138.18 million shares as compared to previous week's average of 135.07 million shares. Average daily trading value however declined by 14.3 percent to Rs 5.70 billion.
The foreign investors remained net sellers of shares worth $5.44 million as compared to an outflow of $8.87 million recorded in the preceding week. Total market capitalization increased by Rs 117 billion to Rs 8.359 trillion.
An analyst at AKD Securities said that breaking its last five week negative momentum (where benchmark index lost 6.7 percent or 2,790 points), market came back strongly into green zone mid-week to close the KSE-100 index at 39,471, 2.13 percent on week-on-week basis. Broad base recovery in the market was led by strong performance of Steel and Cement sectors along with the positive development regarding introduction of Category B in PSX to eligible more companies (28-30) for margin trading system (MTS). Performance leaders during the week were UBL (up 10.8 percent), HBL (up 7.2 percent), NBP (up 7.2 percent), FATIMA (up 6.9 percent) and BAFL (up 5.8 percent); while laggards included POL (down 4.4 percent), GWLC (down 4.3 percent), HUBC (down 2.5 percent), APL (down 1.9 percent) and DGKC (down 1.6 percent).
An analyst at JS Global Capital said bearish sentiments prevailed for better part of the week, but the market witnessed some recovery towards the end, helping index close in the green zone after five weeks of consecutive red closings. Bottom fishing in heavyweight stocks helped KSE-100 index record increase of 825 points. This also coincided with news of PSX looking to introduce Category B that will include companies eligible for margin trading system and deliverable futures. Most of value buying activity remained concentrated into heavyweight sectors such as banks (up 5.0 percent), fertilizers (up 3.0 percent), cements (up 3.0 percent) and oil and gas marketing (up 2.0 percent). On the other hand, sectors such as Food and Personal Care (down 3.0 percent) and Refinery (down 1.0 percent) etc. witnessed declines.
An analyst at Topline Securities said after six weeks of decline Pakistan's Benchmark KSE?100 index bounced back gaining 2 percent/782 points. Some dust settled on the political front where Delimitation Bill was passed paving way for timely elections in 2018, civil?military tensions eased as after a 6 year period Army Chief appeared in senate where he answered critical questions including the denial of Army's role in Faizabad religious parties' protest. Further, PML?N de?facto boss Nawaz Sharif tapped his younger brother as the candidate of Prime Minister for next elections.
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