Pakistan Stock Exchange witnessed bullish trend during the outgoing week ended January 11, 2019 on the back of healthy buying in various sectors. BRIndex100 gained 217.8 points on week-on-week basis to close at 4,127.41 points. Average daily volumes stood at 129.392 million shares. BRIndex30 increased by 1165.31 points to close at 21,844.57 points with average daily turnover of 91.645 million shares.
KSE-100 index surged by 1501.59 points on week-on-week basis and closed at 39,049.08 points. Trading activities also improved as average daily volumes on ready counter increased by 17.8 percent to 138.67 million shares as compared to previous week''s average of 117.75 million shares. Average daily trading value increased by 12.3 percent to Rs 6.39 billion. Total market capitalization increased by Rs 199 billion to Rs 7.877 trillion.
An analyst at AKD Securities said that the KSE-100 index propelled during the week to close at 39,049 points, up 4.0 percent on week-on-week basis at the back of visit of Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al-Nahyan, report released by Fitch stating that SBP can keep rates at 10 percent for the rest of FY19 and FATF showing satisfaction over the steps taken by Pakistan to avoid black-list which proved to be a breath of fresh air against the negative developments over the issue in last 6-8 months.
The visit of Abu Dhabi Crown Prince put stamp on a $6 billion package for Pakistan including a $3 billion deferred oil facility which caused an adrenaline rush as the market increased by 1015 points on the first day of the week. Additionally, upward movement in oil, WTI increased by 8.7 percent during the week, provided support to the oil stocks. Performance wise, top gainers in AKD Universe were PPL (up 14.5 percent), POL (up 12.1 percent), FFBL (up 11.1 percent), GWLC (up 10.1 percent) and OGDC (up 9.4 percent).
An analyst at JS Global Capital said that the KSE-100 index received an adrenaline rush this week from the $6.2 billion package to be received from UAE to Pakistan, following the Crown Prince of Abu Dhabi''s visit to the country. Further investor confidence was boosted with news flows regarding potential hefty investments by UAE and Saudi Arabia in the Refinery and other sectors of Pakistan.
More impetus came from satisfactory remarks from FATF over Pakistan''s efforts that have been made so far to tackle money laundering. News updates regarding higher taxes and duties anticipated in the upcoming ''Mini Budget'' to be announced during this month also remained on the radar during this week.
On sector-wise performance, market cap of the Oil & Gas Exploration sector expanded by 11 percent as trade talks and Opec cuts further increased international oil prices by 9 percent during the week, taking them up by 21 percent since recent lows during December 2018.
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