Positive trend witnessed

Pakistan Stock Exchange witnessed positive trend during the outgoing week ended January 12, 2018 on the back healthy buying by both local and foreign investors. BRIndex100 gained 42.69 points on week-on-week basis to close at 4,608.52 points with average daily trading volumes stood at 254.063 million shares.
BRIndex30 increased by 318.17 points to close at 23,672.40 points with average daily volumes of 184.486 million shares. Pakistan's benchmark KSE-100 index surged by 409.73 points on week-on-week basis and closed at 42,933.72 points. Trading activities on the ready counter improved as average daily volumes increased by 29.8 percent to 276.37 million shares as compared to previous week's average of 212.91 million shares. Average daily trading volumes increased by 43.5 percent to Rs 12.19 billion. The foreign investors remained net buyers of shares worth $26.41 million during this week. Total market capitalization increased by Rs 18 billion to Rs 8.905 trillion.
An analyst at AKD Securities said developments over the reconstitution of Balochistan provincial cabinet following the CM's resignation was positively interpreted by the market participants, pushing KSE-100 higher by 0.96 percent over the week to close at 42,934 points. Gas utilities in particular registered gains (SNGP/SSGC: up 18.6 and 6.7 percent) as ECC approved financing plan for the 3rd RLNG pipeline at Rs 175 billion while NEPRA's resistance to revise KEL's MYT dragged the stock down by 4.96 percent. Performance leaders (of AKD universe) during the week were FFC (up 7.02 percent), FFBL (up 6.12 percent), HBL (up 4.82 percent), APL (up 3.65 percent) and CHCC (up 2.94 percent); while laggards included NBP (down 5.93 percent), KEL (down 4.96 percent), DGKC (down 4.43 percent), ASTL (down 4.42 percent) and KAPCO (down 3.33 percent).
An analyst at JS Global Capital said that the key sector that outperformed during the week was Fertilizers (up 1.4 percent) on expectations of a new fertilizer policy and/or measures to reduce Urea prices in the country ahead of the general elections. On the other hand, Cements (down 0.5 percent), E&Ps (down 1.5 percent) and Autos (down 0.3 percent) underperformed the index.
An analyst at Arif Habib Limited said that the local bourse remained strong despite tension building between Pakistan and US. Though, Tahir ul Qadri's announcement of countrywide protest against the ruling party from 17th January did disturb the momentum of the market during the week. Still, attractive valuations and positive sentiment amongst investors kept the market within the 42,000 - 43,000 range.
During the week positive contribution to the market came from Commercial Banks (up 178 points), OMCs (up 137 points), Fertilizer (up 87 points), Engineering (up 41 points) and Technology & Communication (up 34 points). Stocks that remained positive include HBL (up 136 points), SNGP (up 110 points), FFC (up 86 points), MCB (up 53 points) and TRG (up 37 points).