Pakistan Stock Exchange remained under pressure due to selling by both local and foreign investors during the outgoing week ended August 03, 2018. BRIndex100 lost 58.09 points on week-on-week basis to close at 4,591.01 points. Average daily trading volumes stood at 266.073 million shares. BRIndex30 gained 66.89 points to close at 23,242.65 points with average daily turnover of 161.743 million shares.
Pakistan's benchmark KSE-100 index declined by 1626.76 points on week-on-week basis and closed at 42,505.05 points. Trading activities on the ready counter slightly improved as average daily volumes increased by 20.8 percent to 283.68 million shares as compared to previous week's average of 234.92 million shares. Average daily trading value surged by 32.9 percent to Rs 11.99 billion.
The foreign investors remained net sellers of shares worth $14.62 million during this week as compared to net outflow of $0.36 million in the previous week. Total market capitalization increased by Rs 54 to Rs 8.744 trillion.
An analyst at AKD Securities said that continuing with its last week positive momentum KSE-100 index gained another 770 points on first trading session of the week. However, US State Secretary Mike Pompeo's statement raising concerns regarding IMF program and dismal banking sector results overshadowed the election relief rally, with KSE-100 index closing at 42,505 points, down 0.7 percent on week-on-week basis.
Performance leaders during the week were ASTL (up 9.7 percent), KAPCO (up 8.1 percent), NBP (up 7.5 percent), MLCF (up 6.7 percent) and FFBL (up 5.2 percent). On the flipside, laggards were UBL (down 11.2 percent), HBL (down 9.8 percent), CHCC (down 4.8 percent), MCB (down 4.5 percent) and PIOC (down 3.7 percent).
An analyst at JS Global Capital said after dust settling over results of the General Elections, the investor base now has eyes set on the economic policies of the upcoming government, considering Pakistan's burgeoning twin deficits and depleting reserves. With talks over the new government keeping all options of financial inflows open, including any potential IMF package, warning from the United States against IMF bailout that could aid China dented investor confidence, bringing KSE-100 down by 2 percent in a single trading session. However, gradual recovery during the rest of the trading sessions limited KSE-100 index losses to 0.7 percent to close at 42,505 level.
With PKR appreciation against the greenback and dip in international coal prices, the cement sector (up 0.2 percent) was one of the outperformers during the week, while rise of 4 percent in pharmaceutical prices led investor interest towards the Pharma sector (up 0.8 percent). On stock-wise performance, Agritech Ltd (AGL up 15 percent) outperformed the benchmark on news of gas supply to the shut plant. In addition, Fauji Foods (FFL, up 17 percent) and Fauji Fertilizer Bin Qasim (FFBL up 5 percent) also rallied on news of Inner Mongolia Yili Industrial Group Co expressing interest to acquire 51 percent of FFL.
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