Bullish trend witnessed

BRIndex30 increased by 1169.55 points to close at 23,462.87 with average daily turnover of 184.448 million shares.

KSE-100 Index surged by 1,474.77 points on week-on-week basis and closed at 42,323.30 points. Trading activities also improved as average daily volumes on ready counter increased by 22.6 percent to 281.79 million shares as compared to previous week's average of 229.93 million shares. Average daily trading value increased by Rs 29.2 percent to Rs 10.71 billion.

Total market capitalization increased by Rs 195 billion to Rs 8.016 trillion.

"The meeting the new-year on an exuberant note, with market expectations of economic stability crystallizing, the KSE-100 index climbed 3.6 percent on week-on-week basis to close at 42,323 points", an analyst at AKD Securities said.

A macro picture largely in line with street expectations, reserves on the mend (30-month high of $11.5 billion) and a consolidating political picture around the question of legislative amendments to the Army Act fueled investor participation.

Top performers from the AKD Universe were LUCK (up 10.2 percent), PAEL (up 9.7 percent), FFBL (up 8.9 percent), PSO (up 8.6 percent) and ASTL (up 8.3 percent) whereas downward movement was limited to ABL (down 0.4 percent).

An analyst at JS Global Capital said after a breather of two consecutive weeks, the market resumed an upwards trajectory, closing at 42,323, up 3.6 percent on week-on-week basis.

He said positive news flows related to foreign exchange reserves (SBP reserves up by $582 million to $11.5 billion), particularly the second IMF tranche, helped shore up investor sentiment. Another factor that provided some stimulus to the market was the monthly CPI readings for December, where headline inflation clocked-in at 12.63 percent, lower than November (12.67 percent) owing to a decline in food inflation. Moreover, NSS rates were also cut during the week, which was expected, following the decline seen in bond yields earlier.

Copyright Business Recorder, 2020

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