KARACHI: During this week, all sessions of the Pakistan Stock Exchange (PSX) heralded positive sentiment but it is still anxiously waiting for some big development to keep ticking the index in green zone.
Despite decline in international crude oil prices the Oil & Gas Exploration scrips resisted pressure. The overall positivity in the investment climate was complimented by jubilant volumes. The KSE-100 index gained 962 points or up by 3 percent on week on week basis, closing at 33,033 points.
Foreign selling continued this week clocking-in at $4.7 million compared to a net sell of $8.8 million last week. Average volumes settled at 223 million shares (up by 106% WoW) while average traded value clocked-in at $40 million (up by 58% WoW). On the local investor’s front, companies and individuals took this as an opportunity with a net buy of $10.84 million.
The recovery is noticeable owing to 1) positive news on exit from FATF grey list, soon a meeting to be held in Paris 2) surge in cement dispatches and prices (mostly rumored) 3) business community meeting with Army Chief and Prime Minister increase chances to resolve pending issues 4) government efforts to take macro-economic situation into consideration and 5) bolster investor confidence after reassurance to businessmen that the authorities are acting on their complaints and there will not be a cause for disruption in their businesses.
“We view the market to remain positive in the coming week. However profit-taking cannot be ruled out. Major developments next week include PM Khan’s visit to China aimed at reviving CPEC Projects and removing impediments”, an analyst from Arif Habib said.
