Geopolitical and economic negatives on the international scene kept the volatile Karachi shares market in red during the first week of New Year. KSE100 lost 2.1 percentage points to close at 32,535. Daily trading volumes, however, grew five per cent and averaged on 119.8 million shares. Average traded value rose to Rs 7.6 billion or $72.6m, Week-on-Week (WoW).
Issues from pharma, biotech, tobacco and household goods sectors appeared as major gainers with 2.5-5.3pc growth. While those lost the most were scrips from sectors like technology hardware, equipment, oil and gas and media, shedding 5.5-6.1pc.
Foreigners, following the global trend of offloading, specially on frontier markets sold portfolios at Karachi Stock Exchange worth $11.25m. Most affected sectors were banking and oil and gas which, respectively, braved outflows of $8.3m and $4.7m. "The sentiments... remained largely negative, taking cue from regional and global markets," commented Raheel Ashraf of JS Research.
The analyst said slump in Chinese equities prompted renewed panic in global market, while global crude oil prices also dropped to as low as $32bpd during the week.
AHL analysts said the first week of the New Year started on a fairly off note. "Overall activity remained bleak," they added. Researchers at Topline Research said regional markets sentiment remained weak owing to tensions between Saudi Arabia and Iran, weak manufacturing data from China and subsequent devaluation of Yuan and depressing oil prices. Resultantly, they said, the benchmark index remained under pressure. Going forward, Yawar Uz Zaman of Shajar Research said the market was likely to remain volatile because of soaring tension between Saudi Arabia and Iran which may result in disturbance to the regional peace. Meanwhile, declining oil prices and Chinese stocks meltdown may also exert pressure on the local bourse.
Major developments in the week were the country's foreign exchange reserves shrinking by $264m, projected growth for Pakistan in 2016 by World Bank set at 5.5pc, Saudi foreign minister's visit to Pakistan, 1,320MW Port Qasim coal project achieving financial closure, ECC pursued law ministry's view on gas supply to Engro Fertiliser, Rs100 billion to be collected through tax amnesty scheme and Fesco's tariff cut by Rs2.8 per unit.
Comments
Comments are closed.