Healthy recovery witnessed

Pakistan Stock Exchange witnessed healthy recovery during the outgoing week ended on September 6, 2019 on the back of fresh buying on attractive low levels. BRIndex100 gained 91.99 points on week-on-week basis to close at 3,167.80 points. Average daily trading volumes stood at 87.645 million shares.
BRIndex30 increased by 758.12 points to close at 16,465.83 points with average daily turnover of 65.791 million shares. KSE-100 Index surged by 795.08 points or 2.68 percent on week-on-week basis and closed at 30,467.20 points. Trading activities, however, remained thin as average daily volumes on ready counter decreased by 24.9 percent to 93.02 million shares as compared to previous week's average of 123.88 million shares. Average daily trading value declined by 23.5 percent to Rs 3.49 billion.
The foreign investors remained net sellers of shares worth $5.32 million compared to net inflows of $0.97 million last during the previous week. Total market capitalization increased by Rs 105 billion or 1.7 percent to Rs 6.187 trillion.
An analyst at Arif Habib Limited said this week trading commenced on a positive note post issuance of a presidential ordinance on GIDC. Whereas SECP undertook major reforms to rejuvenate the capital market and promote ease of doing business. On the other hand, change in CPI methodology revealed a lower than anticipated reading by 114bps of 10.49 percent in August 2019 which increases the likelihood of a policy rate cut. Furthermore, stability was witnessed in the PKR-USD parity. As a result, the KSE-100 index closed above 30,000 mark at 30,467 points, increased by 795 points or 2.68 percent on week-on-week basis.
Contribution to the upside was led by Oil and Gas Exploration Companies (up 299 points) amid rising international oil prices, Commercial Banks (up 152 points), Power Generation and Distribution (up 103 points), Oil and Gas Marketing Companies (up 75 points) and Fertilizer (up 49 points).
Scrip wise major gainers were HBL (up 127 points), OGDC (up 126 points), PPL (up 118 points), HUBC (up 87 points) and POL (up 41 points). Whereas, scrip wise major losers were MEBL (down 32 points), THALL (down 19 points) and HASCOL (down 12 points).
An analyst at Topline Securities said that the KSE-100 index recorded a recovery of 795 points during the week. Trading week started on a positive note as Index gained 1.3 percent on back of much awaited regulations pertaining to capital markets to enhance liquidity in stock exchange. Weekly index return of 2.7 percent was boosted by lower CPI numbers (August 2019 at 10.5 percent at new base) after revision of weights by Pakistan Bureau of Statics (PBS) which has led market players to believe that interest rates have peaked.