Pakistan''s benchmark KSE-100 index surged by 1,386.17 points on week-on-week basis and closed at 42,787.19 points. Trading activities on the ready counter improved as average daily volumes increased by 15.6 percent to 157.13 million shares as compared to previous week''s average of 135.93 million shares. Average daily trading value increased by 7.8 percent to Rs 8.68 billion.
Total market capitalisation increased by Rs 180 billion to Rs 8.878 trillion. The foreign investors emerged net buyers of shares worth $27.7 million during this week. It was the highest inflow of foreign portfolio investment during current fiscal year. An analyst at AKD Securities said in the absence of major political updates, KSE 100 index ended the week at 42,787 points, rising 3.35 percent on week-on-week basis, as the bourse rode on to the path carved out by International oil prices (up 4.8 percent on week-on-week basis) while incorporating the buoyant pull from HBL as the saga ended with HBL paying $225 million against the initial expectations of $630 million. Performance leaders during the week were HBL (up 21.8 percent), ENGRO (up 11.1 percent), EFOODS (up 9.7 percent), NBP (9.6 percent) and NML (up 7.4 percent); while laggards included CHCC (down 4.9 percent), APL (down 4.5 percent), FCCL (down 1.7 percent), GWLC (down 1.6 percent) and PIOC (down 1.2 percent).
An analyst at JS Global Capital said there was some relief for investors during the outgoing week as the benchmark KSE-100 index recovered by 3.3 percent on week-on-week basis, its highest weekly gain during the last four months. The market found some technical support at around 40,600 levels, however most of the gains stemmed from relief rally in Habib Bank (HBL) after its lower-than-expected penalty payment, as it contributed around 510 points in total market gains of 1,386 points during the week. The market was also buzzed with return of foreign buying, as weekly net activity turned positive after almost two months to clock in at $27.7 million. This coincided with the rebalancing of indices provided by FTSE and S&P Dow Jones, where in the latter''s case Pakistan status is being upgraded to Emerging Market from a Frontier Market effective September 18, 2017. Key sectors that outperformed during the week were Commercial Banks (up 6.1 percent) and oil & gas exploration (up 3.7 percent), whereas sectors that underperformed were Automobile Assemblers (down 0.2 percent) and Cements (down 0.4 percent).
An analyst at Arif Habib Limited said the benchmark equity bourse (KSE-100) exhibited gains on 4 out 5 trading sessions with sound fundamentals, stable news flow and other technical factors forming alliance after a long period. Bullish sentiments were led by commercial banks (index contribution at 744 points) as HBL regained some of its lost weight in the market post payment of a $225 million penalty to the US regulator in NY. Meanwhile, fertilisers remained buoyant (up 284 points) amid foreign interest in Engro (up 180 points) alongside higher international urea prices. Following suit, the Oil & Gas Exploration Companies added another 192 points to the index supported by a rally in global oil prices (WTI crossed the $50/bbl threshold for the first time in 5 weeks and remained up by 2 percent as refineries in the US operate at dented capacities given the aftermath of Hurricane Harvey).
Copyright Business Recorder, 2017