Pakistan Stock Exchange witnessed bearish trend during the outgoing week ended on May 4, 2018 due to selling in various sectors. BRIndex100 lost 120.95 points on week-on-week basis to close at 4,752.81 points. Average daily trading volumes stood at 134.878 million shares. BRIndex30 decreased by 680.73 points to close at 24,017.48 points with average daily turnover of 94.022 million shares.
Pakistan''s benchmark KSE-100 index declined by 1,005.87 points on week-on-week basis and closed at 44,536.91 points. Trading activities remained low as average daily volumes on ready counter decreased by 1.6 percent to 165.92 million shares as compared to previous week''s average of 168.54 million shares. Average daily trading value declined by 21.5 percent to Rs 6.35 billion. The foreign investors emerged net buyer of shares worth $0.57 million during this week as compared to an outflow of $2.80 million in the preceding week. Total market capitalization declined by Rs 211 billion during this week to Rs 9.180 trillion.
"Ignoring populist budgetary measures (particularly with regards to taxation) and higher international oil prices, market remained lacklustre throughout the week, shedding 1,006 points to close the benchmark KSE-100 index at 44,537 points, down 2.21 percent on week-on-week basis," An analyst at AKD Securities said.
He said political uncertainty (approaching deadlines for accountability court verdict) and weakened Pakistan growth outlook (revised down to 4.7 percent for FY19) along with highlighting of macroeconomic vulnerabilities by IMF were the major culprit behind the dull performance of the market during the week.
Performance leaders during the week were ASTL (up 2.40 percent), FCCL (up 1.84 percent), DGKC (up 1.38 percent), EFERT (up 1.01 percent) and KAPCO (up 0.38 percent); while laggards included FATIMA (down 10.58 percent), HBL (down 7.51 percent), UBL (down 6.88 percent), PIOC (down 6.07 percent) and INDU (down 6.03 percent).
An analyst at JS Global Capital said that the benchmark KSE-100 index declined by 2.2 percent during the week following FY19 budget announcement by the incumbent PML-N over the weekend. Almost all key heavyweights such as Banks (down 3.5 percent), Fertilizers (down 2.9 percent), OMCs (down 2.5 percent) and Autos (down 2.6 percent) witnessed profit taking during the week.
General lack of optimism can be attributed to continuation of Super Tax for the next three years (four years for banking companies) for FY19 and overall ambiguities surrounding applicability of the budget amidst disapproval by the opposition parties. Credit rating agency Moody''s also highlighted continuation of Super Tax as a credit negative for the banking sector during the week, putting further pressure on the banking sector.