Pakistan Stock Exchange (PSX) witnessed a mixed trend during the outgoing week mainly due to foreign selling. During the week, the benchmark KSE-100 index hit all time high of 47,210 points, however failed to sustain this level and on the end of the week closed at 46,633.99 points level, marginally up by 49.46 points.
Trading activities also remained low as the average daily trading volumes on ready counter decreased by 5.9 percent to 336.57 million shares as compared to previous week's average of 357.58 million shares. Average daily trading value declined by 13.5 to Rs 17.23 billion. Total market capitalisation decreased by Rs 1 billion to stand at Rs 9.331 trillion. The foreign investors remained net sellers and withdrew $46 million from Pakistan stock market during the week.
An analyst at JS Global Capital said that the outgoing week ended with a major development in Pakistan's equity market as consortium of three major Chinese Stock Exchanges (China Financial Futures Exchange, Shanghai Stock Exchange and Shenzhen Stock Exchange) winning the bid to acquire 40 percent stake in the PSX. Whilst the news did little to stir equity prices in the trading session following the announcement, this marked the start of a new chapter in Pakistan's equity market as strategic sale is expected to open new doors of growth opportunities going forward.
Local mutual funds, continued to absorb hefty foreign selling amidst hefty liquidity inflows and $21 million worth of equities bought during the week. Most of the profit taking remained concentrated in heavyweight Oil & Gas and Cement sectors given strong performance in the last few weeks.
An analyst at AKD Securities said that in a long due correction, the market took a breather midweek leading the benchmark index to close at 46,634 points, up 0.1 percent on week-on-week basis. Market leaders for the week were HMB, EPCL, AICL, PSMC and ABL. Laggards during the week were MEBL, LOTCHEM, SSGC, HASCOL and ASTL.
An analyst at Arif Habib Limited said after smooth sailing for a consecutive 14 days, the local bourse turned red in the last three days of the week. While buying activity witnessed in initial two days adding 626 points, bears managed to erode 576 points of the weekly gains with the market closing flat at 46,634. The sectors that lingered under the spotlight during this week were commercial banks, insurance and tobacco.
An analyst at Topline Securities said that after starting on a positive note the local bourse witnessed correction in the latter half of the outgoing going week. The KSE-100 index breached the 47,000 slab on Tuesday where it touched highest ever level of 47,201 points. However, investors remained cautious in latter days of the week where profit booking and subdued volumes kept the rally in check causing index to lose 360 points or 0.6 percent since Wednesday.