The Karachi stocks ended the week in red zone as the benchmark KSE-100 index shed 2.7 percent week-on-week (WoW) and closed at 32,761. Investors' sentiments remained jittery as the week under review saw the average daily trading volumes at the country's largest bourse plunging to 17-week low of 135 million shares. This depicts a decline of 34.2 percent over the preceding week.
The average daily value of stocks traded also slid by 22 percent and accumulated to Rs 6.3 billion.
The foreign investment remained another negative head with foreigners and local mutual funds selling net portfolios of $4.7 million and $4.2 million, respectively. The companies, however, appeared as major net buyers of $2.9 million stocks.
Sector-wise, major gainers were support services, which rose by 5.4 percent while electronic and electrical goods gained 2.0 percent. The week's major losers were technology hardware & equipment and software & computer services whose losses ranged from 7.4 to 7.8 percent.
"Volatile political landscape and concerns over NAB investigations against brokers and industrialists kept sentiments jittery at the Karachi Stock Exchange," said JS analyst Faizan Ahmed. Investors, he said, completely disregarded macroeconomic developments such as a 50bps cut in the discount rate, PM's relief package for farmers inciting hopes of reversion of gas price hike and Fitch assigning credit rating 'B' with stable outlook for Pakistan's sovereign debt.
Moreover, Ahmed said, fears of continuous foreign selling and uncertainty over Fed interest rate hike in the region further deterred fresh buying at the KSE.
"Global financial markets suffered repeated blows during the week amid weak Chinese data and buzz over Fed's policy meeting," viewed Topline Research analysts.
The week's major highlights included the appointment of financial advisors by the Ministry of Finance for $500 million Eurobonds issue, a cut of Rs 2.19 per unit in power tariff under monthly fuel price adjustment and T-Bill auction in which the government raised Rs146 billion with cut-off yields going down by 47 basis points.
Analysts at AHL Research said going forward the market may remain volatile the week before Eid-ul-Adha due to three-day future rollover week.
However, they said, with improving macro outlook, expanding regional discounts and correction of six percent witnessed in Sept'15TD. "This makes Pakistani equities an appealing investment case," they opined.
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