Pakistan Stock Exchange witnessed bullish trend during first three sessions of the outgoing week, however the investors opted for profit taking in the last two days. BRIndex100 gained 36.80 points on week-on-week basis to close at 3,580.44 points. Average daily trading volumes stood at 82.021 million shares.
BRIndex30 increased by 233.06 points to close at 18,250.14 points with average daily turnover of 60.265 million shares. KSE-100 index surged by 288.44 points on week-on-week basis and closed at 34,190.02 points. Trading activities remained low as average daily volumes decreased by 40.9 percent to 86.55 million shares as compared to previous week’s average of 146.45 million shares. Average daily trading value declined by 30.3 percent to Rs 3.18 billion. Total market capitalization increased by Rs 23 billion to Rs 6.910 trillion. Pakistan Stock Exchange
“Managing to hold back gains made during the beginning of the week, the KSE-100 index closed at 34,190 points rising 288 points ending the first week of FY20 up 0.9 percent on week-on-week basis”, an analyst at AKD Securities said.
With approval from the IMF executive board for the proposed $6 billion EFF external financing support over the next three years (accompanied by release of $1.0 billion), investor sentiment see-sawed as regulatory action to curb un-registered transactions, including SECP’s recently approved Search And Seizure Rules raised apprehensions.
Key performers from the AKD Universe included NBP (up 9.8 percent), FFC (up 8.7 percent), FFBL (up 4.9 percent) and HBL (up 4.9 percent), whereas laggard during the week were EFOODS (down 7.3 percent), HASCOL (down 6.8 percent), ASTL (down 4.7 percent) and KEL (down 3.9 percent).
An analyst at JS Global Capital said despite closing two of the five trading sessions in the red, Pakistan Equities ended the week with a gain of 0.9 percent. The outgoing week saw major developments on the economic front where the IMF’s approval of a $6 billion Extended Fund Facility with an immediate disbursal of the first tranche amounting to $1.0 billion was at the forefront. However, the true effects of this news were somewhat diluted as the government had already begun a crackdown on Benami assets upon expiry of the amnesty scheme on July 3, 2019. Nearly 137,000 individuals availed this scheme, declaring a total of nearly Rs 3 trillion in assets, as per news sources.
(This news/article originally appeared in Business Recorder on July 8th, 2019)