KARACHI: Pakistan Stock Exchange witnessed mixed trend during the outgoing week ended on March 05, as the investors remained cautious and avoided to take fresh positions due to prevailing political situation in the country.
BRIndex-100 closed at 4,953.65 points, up 11.55 points on week-on-week basis. Average daily trading volumes stood at 350.451 million shares.
BRIndex-30 increased by 237.06 points to close at 25,705.58 points with average daily turnover of 236.993 million shares.
KSE-100 index lost 27.67 points on week-on-week basis and closed at 45,837.35 points. Trading activities remained low as average daily volumes on ready counter decreased by 34.5 percent to 386.00 million shares as compared to previous week’s average of 589.35 million shares. Average daily trading value declined by 19.2 percent to Rs 20.41 billion.
The foreign investors remained net sellers of shares worth $10.66 million during this week together with Mutual Funds (net sell of $9.37 million) and Companies (net sell of $1.42 million) which was mainly absorbed by insurance companies (net buy of $8.40 million) and banks (net buy of $7.98 million). Total market capitalization declined by Rs 15 billion during this week to Rs 8.192 trillion.
An analyst at AKD Securities said the KSE – 100 index closed at 45,837 points, down by a meagre 28 points or 0.06 percent on week-on-week basis, after recording episodes of extreme volatility throughout the week primarily on back of political drama surrounding Senate elections.
The market registered major uptick in initial half of the week owing to anticipations regarding the elections. However, the index went downhill following the news of PTI’s Minister for Finance and Revenue, Dr. Hafeez Sheikh being unsuccessful in his bid to become a senator from Islamabad, losing to the former Prime Minister Yousuf Raza Gillani, despite PTI emerging as the single largest party in Senate with 26 seats. Nevertheless, the market recovered on last trading day of the week due to positive sentiments driven by a swift move on the governments side where it vows to file a motion for ‘Vote of Confidence’ in Parliament on Saturday.
Top performers for the week were) SNGP (up 11.4 percent), KAPCO (up 10.5 percent), ANL (up 10.5 percent), INIL (up 7.6 percent) and GATI (up 7.1 percent) whereas laggards were FML (down 10.1 percent), STJT (down 8.4 percent), HMM (down 7.9 percent), SFL (down 7.2 percent) and PSX (down 6.6 percent).
An analyst at JS Global Capital said that after remaining on edge in the initial trading sessions of the week, the market plunged by more than 800 points on Thursday before making a sharp recovery on the next day, ending marginally down by 0.1 percent on WoW. Thursday’s reaction was on the cards, given the hotly contested Senate elections. To summarize, the ruling party gained in terms of representation in the Senate (however, still in a minority compared to the opposition coalition), but lost a key seat from Islamabad on which the Finance Minister was contesting. And with the Prime Minister seeking a vote of confidence from Parliament on Saturday (i.e. March 6, 2021) following the election result, the reaction was expected. But so too was the recovery, given the preceding momentum.
Copyright Business Recorder, 2021
Comments
Comments are closed for this article.