Pakistan Stock Exchange remained under pressure during the outgoing week ended on February 9, 2018 due to selling in various sectors.
BRIndex100 lost 59.33 points on week-on-week basis to close at 4,693.51 points. Average daily volumes stood at 219.676 million shares.
BRIndex30 decreased by 295.39 points to close at 24,453.85 points with average daily turnover of 159.916 million shares.
Pakistan''s benchmark KSE-100 index declined by 492.40 points on week-on-week basis and closed at 43,808.80 points. Trading activities remained thins as average daily volumes on ready counter decreased by 4.0 percent to 244.90 million shares as compared to previous week''s average of 255.22 million shares. Average daily trading value declined by 3.2 percent to Rs 9.64 billion.
The foreign investors remained net sellers of shares worth $8.5 million during this week. Total market capitalization decreased by Rs 72 billion during this week to Rs 9.099 trillion.
An analyst at AKD Securities said that the KSE-100 index treaded on the trail set by global equity markets, shedding 492 points (down 1.11 percent) to close the week at 43,809 points. Amidst build-up of inflation expectations resulting in higher bond yields, investors across the world pursued the sell-off strategy, leading to profit taking in the local bourse as well. Correction in international oil prices (Brent losing 8.9 percent in last two weeks) resulted in the decline of index heavy weight oil & Gas sector (OGDC/PPL/POL: down 0.7/5.4/2.1 percent), further dragging performance. Moreover, construction sector also suffered as Sindh High Court''s judgment declaring SRO (1035 (I) 2017) void was initially perceived negative for the steel stocks (ASTL/MUGHAL/ISL -3.0/4.0/2.6 percent) while news of decrease in retail cement prices (in the north) affected cement stocks across the board.
Performance leaders of the week remained NBP (up 4.3 percent), UBL (up 3.2 percent), KAPCO (up 1.2 percent), BAFL (up 0.9 percent) and HUBC (up 0.7 percent) whereas laggards were CHCC (down 8.8 percent), PIOC (down 6.9 percent), DGKC (down 6.5 percent), PPL (down 5.4 percent) and MLCF (down 4.4 percent).
An analyst at JS Global Capital said that the local equities plunged after US stocks fell most in more than six years, as the benchmark KSE-100 index declined by over 800 points (down 2 percent) during the early trades on Tuesday. The market recovered somewhat, however it failed to break the overall bearish trend with foreigners turning in net selling.
The key sectors leading the decline were Cements (down 3.7 percent) - where in spite of strong January 2018 local dispatches (up 37 percent), rumors of break in pricing cartel and earnings announcement by Cherat Cement (CHCC, down 9 percent) dampened investors'' sentiments and Oil and Gas Exploration (down 2.2 percent) - as international oil prices came off by 9 percent during the week. The Steel sector (down 2.7 percent) too came under selling pressure as suspension of regulatory duties confused investors.
The overall sentiments continue to be affected by the gloomy external account outlook, as foreign exchange reserves further declined by $172 million to $19.18 billion.