KARACHI – Pakistan Stock Exchange (PSX) after four weeks of bear control staged a recover of more than 1300 points during the outgoing week as some of the institutional buying surfaced rekindling hope of sustained recovery.
The market activity also remained on the higher side during the week where average daily turnover and turnover in values amounted to 157.13 million shares and 82.42 million dollars respectively.
Oil & gas sector recorded an increase of 3 percent and Banks 7 percent on weekly basis were the main contributors to the bullishness led by Pakistan Oilfields following a healthy final dividend announcement. Interest in banking sector was mainly observed due to clarification and settlement of HBL’s penalty. Moreover, foreigners were net buyers of shares worth 27.70 million dollars followed by local brokers who were also net buyers of 9.6 million dollars. On the flip side, banks seem to have lost interest in the market and opted to sell-off shares worth USD6.7mn.
The market was seen taking a pause from its recent bearish trend as it recorded a steady comeback of 1,386 points in the outgoing week. Volumes were mostly compressed, however reported institutional buying at the fag end of the week, increased activity at the bourse
Wider impression of this moving in favor of the ex-premier’s family ahead of the upcoming NA-120 by election helped in lifting sentiments with higher expectations of the current set-up completing its five year term.
Re-assuring remarks from the ministry of finance regarding no immediate need for the country to take up another IMF program helped in allaying concerns on the economy’s health, hence propelling a mild wave of buying at enticing valuation discounts
Inclusion of MCB, SNGP, BAFL, MTL and THAL in the FTSE Asia Pacific ex-Japan index also played its part in pushing the benchmark into green, on hopes of higher foreign flows being routed into the market. These companies will be included in FTSE index from September 18.