Due to selling from both local and foreign investors, the benchmark KSE-100 index declined by 367.71 points or 0.7 percent on week-on-week basis and closed at 49,008.00 points.
Trading activities on ready counter also remained low as average daily trading volumes declined by 9.1 percent to 321.77 million shares as compared to previous week's average of 353.91 million shares. Average daily trading value decreased by 17.8 percent to Rs 14.48 billion. Total market capitalisation declined by Rs 94 billion to Rs 9.704 trillion.
The foreign investors remained net sellers of shares worth $4.8 million and withdrew their investment from Pakistan stock market during this week.
An analyst at JS Global Capital said that the KSE-100 index witnessed a choppy period this week, closing at 49,008 points, down 0.7 percent on week-on-week basis. The divergent trends in the trading sessions (hopping between green and red zone) can be attributed to security concerns, progress on Panama case hearing, futures roll-over, recovery in crude oil prices and result season attracting investors' interest in select stocks. Mutual funds remained net buyers with a net investment of $26.7 million during the week. Bestway Cement remained the key outperformer during the week with a gain of 1.4 percent post announcement of its non-binding agreement with Dewan Cement Limited (DCL) for acquisition of Hattar Plant. Sui Southern Gas Company (SSGC) also gained traction (up 3.7 percent) on recommendation of additional allowance of UFG by a reputable advisory firm.
An analyst at AKD Securities said that after starting the week on a shaky foot, market remained volatile thereon as investors preferred realising profits due to uncertainty around Panama hearing, law and order concerns and stricter regulatory actions. Top performers at the bourse were HMB (up 4.97 percent), MTL (up 4.20 percent, PIOC (up 3.72 percent) and SSGC (up 3.66 percent), whereas laggards included HASCOL (down 8.42 percent), DAWH (down 7.58 percent), AGTL (down 7.09 percent) and ASTL (down 5.29 percent).
An analyst at Arif Habib Limited said that the local bourse continued with its choppy trend over the preceding week with KSE-100 closing at 49,008 level. The benchmark dropped to an intra-week low of 48,475 points at one point due to investors' concern over numerous events taking place in the country. In an unusual move, the Supreme Court reserved hearing over the panama case only adding to the strain on market that persisted due to law and order conditions in different parts of the country. The Cement Sector took the lead with a positive contribution of 77 points, with a strong demand outlook. Banking sector followed suit driving market up by 44 points. UBL was the biggest contributor on the back of increased profitability by 6 percent in CY16, results announced in the previous week, tailed by HBL and MCB, contributing positively by 38 points and 32 points, respectively. On the other hand, primary laggards were Fertilizer and Power sectors backed by DAWH (76 points), HUBC (47 points), FFC (39 points) and HASCOL (35 points). Given limited immediate triggers, foreigners remained net sellers amounting $4.84 million with corporate selling $4.21 million. On the other hand, local banks also observed a net sell of $3.56 million after ensuing the movements at the bourse, whereas funds and companies accumulated portfolios worth $26.63 million and $10.68 million.
An analyst at Topline Securities said that the KSE-100 index came under pressure during the outgoing week. Future roll-over, decision-less panama case, unearthing of more broker frauds and deterioration of the security situation weighed in on investor sentiments. Resultantly, the 100 index declined by 0.7 percent on week-on-week basis, barely managing to close the week off above 49,000 points level.
An analyst at BIPL said volatility gripped the index during the week and kept it from breaching 50,000 level. Major contributors towards this volatility were the Panamagate hearing, worsening law and order situation and concerns over tighter regulation of stockbrokers.
Copyright Business Recorder, 2017