Pakistan Stock Exchange witnessed positive trend during the outgoing week ended on March 2, 2018 on the back of local investors' interest in various sectors. BRIndex100 gained 75.39 points on week-on-week basis to close at 4,713.65 points. Average daily trading volumes stood at 145.354 million shares. BRIndex30 increased by 55.3 points to close at 24,502.55 points with average daily turnover of 103.727 million shares.
Pakistan's benchmark KSE-100 index surged by 473.29 points on week-on-week basis and closed at 43,740.49 points. Trading activities slightly reduced as average daily volumes on ready counter decreased by 1.5 percent to 181.15 million shares as compared to previous week's average of 183.93 million shares. Average daily trading value however increased by 1.3 percent to Rs 8.22 million shares.
Total market capitalization increased by Rs 23 billion to Rs 9.110 trillion. The foreign investors remained net sellers of shares worth $11.4 million during this week. An analyst at AKD Securities said despite uncertainty emanating from international developments over FATF inclusion, sector-specific developments and legal impediments, the KSE-100 gained 473 points, up 1.09 percent to close the week at 43,740 points.
Cement sector remained in the limelight, with major activity witnessed in the sector on the back of industry-wide price hike (Rs 10-15/bag in North), contributing to enhanced profitability of domestic players. Performance leaders during the week were MLCF (up 14.35 percent), PIOC (up 12.89 percent), CHCC (up 12.82 percent), FCCL (up 11.02 percent) and DGKC (up 10.26 percent); while laggards included UBL (down 3.83 percent), PTC (down 1.69 percent), BAFL (down 1.27 percent), NML (down 1.06 percent) and MCB (down 0.92 percent).
An analyst at JS Global Capital said investor sentiments remained mixed during the week on the back of Pakistan being added to the 'grey list' of Financial Action Task Force (FATF). Although authorities remained confident that inclusion of Pakistan into the grey list will have minimal impact, market participants continued to ponder over likely ramifications of Pakistan's trade with other countries and impact on various listed sectors. However, benchmark KSE-100 index managed to close in the green zone at 43,740 points, up 1.0 percent, mainly attributable to heavyweight sectors such as Cements (up 7.0 percent on price increase of Rs 10/bag in the North), OMCs (up 1.0 percent) and Power (up 2.0 percent).
FATF-related news flow mainly impacted the banking sector (down 1.0 percent) on fears of tightening global scrutiny. Moreover, volatile international crude oil prices also kept oil and gas exploration and production sector (down 1.0 percent) under pressure.
An analyst at Arif Habib Limited said with bearish trend overdrawn previously as the market witnessed four consecutive weeks of decline, the index managed to close in green. In particular, the Cement sector (contributing plus 347 points) helped the index remain positive during the week owing to a likely Rs 10/bag price hike by domestic cement manufacturers in the North region and further expectations of a price increase in a phased manner. Moreover, the government showed intentions to clear circular debt issue which improved investor's interest in Power and Oil Marketing Sector.
Top five best performing sectors during the week were Cements (plus 347 points), Fertilizers (plus 122 points) due to foreign accumulation worth of $4 million, Power Generation and Distribution (plus 43 points), Automobile Assemblers (plus 40 points) and Oil and Gas Marketing Companies (plus 34 points).
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