The KSE-100 index came under pressure during the last week as well owing to uncertainty regarding the alternative tax proposals for stock market investors and political disturbances in Islamabad.
Despite few clarifications, the index ended the week with a decline of 143 points. Uncertainty on the local political front also kept investors on the sideline.
The traditional badla market saw rates well within single digit range despite June-end being right around the corner.
The badla investment and volumes were also low, partially impacted by the change in list of eligible stocks for COT and imposition of 10 percent tax on earnings through COT.
The KSE-100 Index witnessed a decline of 2.72 percent to close at 5105.70 on Friday, while average daily volumes also decreased by 14.50 percent to 256.21 million shares.
Arif Habib Securities, Tri-Pack Films, Lucky Cement, ICP SEMF, and Askari Commercial Bank and other bank scrips were the major gainers while Security Paper, Pak Services, Gatron Industries, Atlas Honda and Cherat Cement were major losers on the KSE.
The week started with a negative note due to rumour about the change of government and President's statement that the country might face retaliation against Wana operations, which pushed the index down by 2.76 percent on the first trading day of the week. Tuesday's session was the continuation of Monday's sentiment.
The market, however, managed to recoup some of the losses as a result of the settlement of CVT issue, and the news about SBP rejecting the auction bids for T-bills.
The index recovered by 0.17 percent on Wednesday. The government approval of CVT and IMF approval of $235 million loan for Pakistan allowed bulls to take over the market, which pushed the index up by another 1.22 percent on Thursday.
The waves of uncertainty on account of rumour regarding Jamali's removal sent the market into negative zone on the last trading day of the current fiscal year.
The index closed at 5,102.22 on Friday, thus increasing the weekly losses to 2.79 percent over last week's close of 5,248.67.
Following the announcement that Prime Minister Jamali has resigned, the market is likely to gain some momentum, and would try to recoup all the losses.
Meanwhile, traders also expect increased institutional activity on Monday, which would be the first trading day for the next fiscal year.
Traders expect PTCL to lead the market in the short-term owing to positive news flows coming out of company board meeting.
Similarly, the excess cash liquidity in the market will keep the overnight rates at very low levels, and this will also lower the badla rates further.
The PC may announce the offer date for PPL IPO, which will also push the investors to start sparing cash for this fairly large public offer.
Though fundamental side is expected to see some positive news flow, dealers fear that change in political set-up in Islamabad may rule the market.
We expect the market to stay range bound with a trading range of 5000-5250, they said, adding: "We maintain our earlier stance that investors should inject the first 25 percent of their cash positions in the market at this level."
During the week, according to an announcement from the Karachi Stock Exchange, the future list has been extended to 15 companies namely OGDC, PTCL, PSO, DG Khan Cement, Pakistan Oilfields, Hubco, Fauji Fertiliser Bin Qasim, ICP SEMF, NBP, DSF, SNGPL, Maple Leaf, Lucky, SSGCL and Engro.
Global Securities Limited was appointed as the lead manager for the Initial Public Offering of Kot Addu Power Company Limited.
The duty reductions in the imported cars has shaken the industry where all the auto manufacturers are trying to contact all the relevant ministries to stop this government move.
Telecard is planning to invest about $50-60 million over next 12 months to expand its will capacity by nearly 500,000 connections in its area of concentration.
The SBP scrapped all bids in the 6-month T-bills auction held on Saturday to keep yields from rising too sharply.
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