Positive trend witnessed

Pakistan Stock Exchange witnessed positive trend during the outgoing week ended on June 1, 2018 on the back of healthy buying in various sectors. BRIndex100 gained 92.25 points on week-on-week basis to close at 4,583.81 points. Average daily volumes stood at 97.998 million shares. BRIndex30 increased by 405.91 points to close at 22,826.01 points with average daily turnover of 65.896 million shares.
Pakistan''s benchmark KSE-100 index surged by 838.72 points and closed the week at 42,912.81 points. Average daily volumes slightly reduced by 0.4 percent to 119.04 million shares as compared to previous week''s average of 119.50 million shares. Average daily trading value increased by 12.6 percent to Rs 5.58 billion.
The foreign investors remained net sellers of shares worth $ 17.5 million as compared to a net outflow of $26.0 million during previous week. Total market capitalization increased by Rs 176 billion to Rs 8.907 trillion.
An analyst at AKD Securities said confronting a period of intensifying political brinksmanship capped-off with the statutory dissolution of National and provincial legislatures, the KSE-100 remained firm, returning plus 1.9 percent on week-on-week basis, closing at 42,913 points. Despite a slew of positive news flows, particularly fundamental developments surrounding extension of subsidies for exports, strong fertilizer offtake and release of Rs 31.3 billion in sales tax refunds, the culmination of political formalities (finalization of poll dates, caretaker setup in the Centre) and upcoming flashpoints kept politics front-and-center of investor tendencies.
Gains at the bourse were led by NML (up 9.3 percent), ASTL (up 8.0 percent), PSO (up 5.2 percent) and NCL (up 4.9 percent). At the other end were PIOC (down 3.8 percent), MLCF (down 3.1 percent), HUBC (down 0.7 percent) and UBL (down 0.6 percent), softening the index.
An analyst at JS Global Capital said that the KSE-100 index extended its gains to close 2 percent higher at 42,913 levels as sentiments remained positive on smooth transition from current government to caretaker set-up during the week. Nasir-ul-Mulk, a former Chief Justice of Pakistan, was named as caretaker Prime minister for a period of two months to hold general election on July 25. The index gained as key sectors such as Oil & Gas Marketing (up 2.1 percent), Fertilizers (up 1.5 percent), Banks (up 1.8 percent) and Power Sector (up 1.2 percent) closed in green. Banks posted gains as the State Bank of Pakistan (SBP) increased Policy rate by 50bps to 6.50 percent on account of growing external account pressures ahead.