Weekly review: Index witnesses one of its most robust weeks in recent history

The Benchmark KSE-100-Share Index witnessed a historic week with spirited investor interest as political tension wear off during the first two days. The tug of war between PML-N and PTI halted when the latter announced to postpone the lock-down of the capital city on Tuesday. The decision came on the back of Supreme Court’s verdict on the Panama leaks inquiry. SC announced a single-member commission to probe revelations against the Prime Minister made in the Panama Papers.

The index soared after the announcement and breached 42,000 mark for the first time. The market jumped 1,982 points or 4.95% during the outgoing week to close at an all-time closing high of 41,974 points on Thursday. However, it lost a few points on Friday and closed the week at 41,842 points.

The week started off with stagnant activity on the local bourse on account of fear and resistance induced by the news of lock-down in Islamabad. However, the equity market bounced back in full swing on the second day of trade as political noise abated. The bourse gained 1,406 points in one day for the first time on Tuesday and remained successful in carrying the robust trend forward for the next two days. However, the rally subdued on Friday and the Benchmark KSE 100-Share Index staged a minor correction at the end of one of its most robust weeks in recent history.

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Apart from diffused tensions in the political space, positive vibes emanated from the announcement of ownership shift of K-Electric Limited to a Chinese power conglomerate, Shanghai Electric Corporation.The recent imposition of dumping duty on Chinese steel imports was also seen as a protectionist move benefiting the local players.

Pakistan’s equity market remained the best performing market during the week in the region followed by China and SriLanka with 0.68% and 0.16% gains, respectively. Other countries in the region including India, Thailand, Indonesia and Malaysia closed in red.

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All of the major sectors remained in the gainers list when compared to last week. Top three gainers over the outgoing week were Refinery, Auto Assemblers and Oil and Gas Marketing Companies, up 10.5%, 10.5% and 7.7%, respectively.

Average daily volumes for the outgoing week grew 42% to 484 million shares compared to 341 million shares last week while average daily value increased 41% to Rs16 billion or $155 million week-on-week.

Bank of Punjab remained the volume leader with 222.7 million shares traded during the week. K-Electric Limited, Sui Southern Gas Company Limited, and The Resource Group Limited followed suit with 164 million, 98.2 million and 71.67 million shares changing hands during the week, respectively.

Foreigners were net buyers of $21 million during the week, which is a 13 week high. Banks, Oil & Gas Marketing and Electricity sectors saw net buying of $7.8 million, $4.6 million and $3.8 million, respectively, whereas Food Producers witnessed a net selling of $0.7 million.

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International Steel Limited, Millat Tractors Limited, Shell Pakistan Limited, Jahangir Siddiqui and Company Limited and Sui Southern Gas Limited were major gainers of the week with 23%, 22%, 20%, 19% and 17% gains, respectively.

The Pakistan Stock Exchange’s market capitalization stood at Rs8.4 trillion ($80.9 billion) at the end of the week.

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