KSE-100 index surged by 1,605.73 points on week-on-week basis and closed at 37,583.89 points. Trading activities also improved as average daily volumes on ready counter increased by 20.5 percent to 311.17 million shares as compared to previous week's average of 258.17 million shares. Average daily trading value increased by 17.3 percent to Rs 9.92 billion. Total market capitalization increased by Rs253 billion to Rs 7.214 trillion.
An analyst at AKD Securities said that the KSE-100 index built on the bullish momentum of the previous weeks, supported by conclusion of IMF's first review. A staff mission of IMF on 8th November 2019, Friday concluded its visit to Pakistan with all praise to authorities for over-performing on first quarter targets under the $6 billion Extended Fund Facility, paving way for the disbursement of $450 million early next month.
The first session of the week thus closed plus 825 points, or up 2.29 per cent. In a large move to widen tax net and check evasion, the government also decided to evolve a comprehensive plan for nationwide tax assessment and documentation drive to bring untapped sectors in the net. PM Imran Khan tasked the tax department for coming up with a detailed plan until Nov 30, which will envisage measures to be implemented over the next two years. On local political front, the JUI-F led Azadi march fizzled out, as the JUI-F chief called off the party's sit-in in Islamabad on 13th November 2019, leading to market rally 401 points (up 1.09 per cent) during KSE-100's third trading session.
Other major factors building the market's momentum during the week included pick up in foreign investment in treasury bills ($267 million during the first two weeks of November 2019), the SBP's decision to increase loans for the exporters by Rs 100 billion, allocation of additional Rs 250 billion to resolve the problem of circular debts, tax incentives for the companies involved in construction of houses, allowing manufacturing sector an advance payment of up to $10,000 for import of raw materials and spare parts to spur LSM sector and shrinking trade deficit.
Top performers in AKD Universe during the week included HASCOL (up 27.41 per cent), ASTL (up 26.73 per cent), CHCC (up 25.02 per cent), PIOC (up 21.75 per cent) and GWLC (up 17.71 per cent), while FFC (down 2.10 per cent), and EFERT (down 0.91 per cent) were major laggards.
An analyst at JS Global Capital said that the Pakistan equities continued the relentless bull rally for the third consecutive week as the KSE-100 index gained another 4.5 per cent over the previous week to close at the 37,584 level.
Foreign investors continued their selling in the cement sector while increasing exposure in Fertilizers and Banks. Overall, foreign investors remained net buyers during the week. Conversely, on the domestic side, Insurance Companies and Banks/DFIs remained major net sellers. In the latest review, Pakistan managed to remain on the MSCI EM index with a weight of 0.03 percent.