Volatility witnessed

31 Oct, 2016

Despite strong financial results and foreign buying, Pakistan Stock Exchange witnessed a bearing trend throughout the outgoing week due to uncertainty on political front, terror attack in Quetta and rollover week, analysts said.
The benchmark KSE-100 index declined by 1418.55 points (3.4 percent) to close below 40,000 crucial level at 39,872.88 points from last week''s closing of 41,291.43 points. Total market capitalisation decreased by Rs 344 billion to stand at Rs 8.085 trillion.
Trading activities also remained thin as the average daily volumes at ready country declined by 27.7 percent to 341.18 million shares as compared to previous week''s average of 471.88 million shares. Average daily trading value reduced by 21.7 percent to Rs 11.51 billion from previous week''s average of Rs 14.70 billion.
Foreign investors emerged net buyers of shares during this and bought shares worth $14.1 million.
An analyst at AKD Securities said that KSE?100 index continued its bearish momentum this week led by rising political uncertainty over November 2 protest and lower international oil prices, with the index falling below the crucial 40,000 level.
An analyst JS Global Capital said that fresh rounds of political sit-ins announced by PTI weighed down on PSX again as despite of reasonably strong result announcements, overall sentiments remained on the negative side. Massive selling of $35 million was witnessed from local individuals, opening up possibility of bottom fishing for local mutual funds and foreign investors, who after a long selling spree turned up as net buyers of $14 million during the outgoing week.
The Topline Securities report said that the benchmark KSE-100 Index witnessed volatility throughout the outgoing week. Negative sentiment prevailed among market participants following the attack on the police training centre in Quetta and escalating tensions on the political front. Investor''s sentiments were further subdued on the back of rollover week for future contracts.

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