KARACHI: Pakistan Stock Exchange witnessed positive trend during the outgoing week ended on Nov 27, on the back of healthy buying mainly by local investors and institutions. BRIndex100 gained 68.79 points on week-on-week basis to close at 4,237.11 points. Average daily volumes stood at 248.273 million shares. BRIndex30 increased by 466.24 points to close at 21,411.72 points with average daily turnover of 184.814 million shares.
KSE-100 index surged by 619.91 points or 1.5 percent and closed at 40,807.09 points. Trading activities also improved as average daily volumes on ready counter increased by 63.4 percent to 279.82 million shares as compared to previous week's average of 171.22 million shares. Average daily trading value on ready counter increased by 54.7 percent and stood at Rs 10.66 billion. The foreign investors however remained on the selling side and withdrew $9.271 million from Pakistan capital market. Total market capitalization increased by Rs 112 billion or 1.5 percent to Rs 7.519 trillion. An analyst at AKD Securities said the KSE-100 index began the week with negative sentiment with government mulling over measures to contain rising cases of Covid-19, hinting a complete lockdown. To add, IMF hinting at government's need to undertake unpopular measures (electricity and gas rate hikes, targeting higher tax collection, etc) to resume the IMF program further dampened the sentiments. Monetary policy announcement of interest rates maintained at 7 percent in scheduled MPC meeting, despite negative real interest rates, resulted in some exuberance among investors.
A rise in international oil prices on the back of mass availability of vaccines in 2021 brought interest in index heavy weight E&Ps in the remaining trading sessions, where profit taking in the last trading session pared some of the gains.
Top performers in the outgoing week were TRG (up 15.9 percent), SYS (up 10.9 percent), POL (up 9.2 percent), PSX (up 9.1 percent), and LOTCHEM (up 7.7 percent), whereas laggards were FCEPL (down 3.7 percent), IGIHL (down 4.2 percent), FFBL (down 4.9 percent), GATM (down 6.2 percent) and SNGP (down 7.0 percent).
An analyst at JS Global Capital said the KSE-100 index recovered this week, closing up 1.5 percent on week-0n-week basis at 40,807 levels.
Companies appeared as the major buyers this week as the segment's net buying accumulated to $3.4 million. The heavyweight Oil & Gas Exploration Companies was one of the highest gainers this week, closing up 6.9 percent, on account of higher international oil prices and news sources citing recommendations of dividend based formula to be used to clear the outstanding circular debt. Other sectors that contributed to the rally were Technology and Communication (up 8.0 percent), Vanaspati and Allied Industries (up 7.3 percent) and Automobile Parts and Accessories (up 3.1 percent).
Copyright Business Recorder, 2020