Equities remain under pressure

Pakistan Stock Exchange remained under pressure during the outgoing week ended on March 08, 2019 due to selling in various sectors. BRIndex100 lost 78.94 points on week-on-week basis to close at 4,107.91 points. Average daily volumes stood at 106.012 million shares.
BRIndex30 decreased by 391.34 points during this week to close at 21,156.39 points with average daily turnover of 81.440 million shares. KSE-100 index declined by 588.79 points on week-on-week basis and closed at 38,950.23 points. Trading activities remained low as average daily volumes on ready counter decreased by 28.7 percent to 114.17 million shares as compared to previous week''s average of 160.05 million shares. Average daily trading value declined by 35.0 percent to Rs 4.64 billion.
The foreign investors were net sellers of shares worth $3.5 million during this week. Total market capitalization declined by Rs 98 billion to Rs 7.986 trillion. An analyst at AKD Securities said that the KSE-100 Index finished 1.5 percent lower for the week to close at 38,950 points. Market initially reacted positively to increase in foreigners'' holding limit in PSX to 20 percent (Previously: 10 percent) however it tiptoed downwards rest of the week.
Even the easing of border tensions with the neighboring country that concerned the market heading this week, along with Power Sukuk issuance of Rs 200 billion, government acting upon banned organizations (Positive from the perspective of FATF negotiations), passing of second mini-budget, failed to generate investors'' interest in equities.
"We believe fundamentals that took backseat in the previous week came to haunt investor sentiments this week with disappointing Cement and OMC sales (down 19.8 percent and 28 percent in February 2019 respectively)", he said. Mutual funds continued to remain net sellers ($10.6 million) which was absorbed by Individual and Companies with net buys of $5.1 million and $3.5 million respectively.
Sector performance can be tagged to second mini-budget announcement with Automobile assemblers leading with up 5.0 percent (on removal of non-filer ban) where heavy-weights witnessed shrinking market capitalization.
An analyst at JS Global Capital said that the KSE-100 posted lackluster performance as it lost 589 points to close the week at 38,950.On a sector wise basis, Oil & Gas Marketing (down 3.0 percent) and Oil and Gas Exploration Companies (down 4.2 percent) were among the major losers of the week while Automobile Assemblers (up 7.4 percent) and Investment Banks (up 11 percent) posted the highest returns.