BULLS BREAK LOSING STREAK TO TOSS INDEX ABOVE 49,000
Pakistan stocks continued its decline on Monday, Tuesday and Wednesday shedding 568 points. Finally in the last two days bulls took over and added 723 points to close at 49,364.83 points on Friday. The average volume during the week declined to 389 million compared to 489 million last week. The paid up capital closed on Friday higher at Rs9.904 trillion.
On Monday, bearish trend persisted as KSE-100 Index lost 322 points to close at 48,888.54. Trading activities too remained low as the volume declined to 316 million. The regulation of mutual funds to keep 5 percent of their total assets in cash kept the local bourse in narrow range for the day.
On Tuesday, the stocks continued with profit-taking shedding 209.89 points to close at 48,678.65. Political instability amid daily proceeding on Panama leaks kept the market sentiment dampened.
It seemed that on Wednesday the bears have lost their steam and the Index lost 36.44 points to close at 48,642.21 points OGDC down 4.85 percent as the government decided to off load about $200 million stake in an effort to revive the privatization program.
Positivity prevailed on Thursday as local investors remained healthy buyers despite continued selling by foreign investors. Investors in steel went on a buying spree after the National Tariff Commission reinstated anti-dumping duty on the import coil from China and Ukraine ranging from 13 to 19 percent for a period of five years. The Index closed at 49,013,82 points adding 371.61 points.
On Friday bulls continued to ride higher and added 351.01 to close at 49,364.83. The bulls were led by selected auto and cement stocks amid speculation ahead of major earning announcement due next week.
On average shares of 422 companies were traded. Of these 205 were gainers and 200 were losers and 17 remained unchanged.
Foreigners were net seller by $46.55m during the week; companies were net buyers $19.43m, Banks were buyers $0.71m; Mutual fund net seller $12.24m and individuals net buyer $28.31m.
Volume leaders during the week were: K-Electric 67m; Telecard Ltd 61m; Faysal Bank Ltd 51m; Bank of Punjab 49m; TRG Pakistan 41m; Sui Southern Gas 41m; Engro Fertilizer 30m; Aisha Steels Mills 28m; Dost Steel Mills 22m; Pak Elektron 20m; Sui Southern Gas 41m; Engro Polymer 14m; Pace (Pak) Ltd & Oil & Gas 13m each and Silk Bank 12m.
Moving forward we expect market to continue its bullish trend.