SELLING PRESSURE AND PROFIT-TAKING KEEP THE INDEX MOVE AT SNAIL PACE; OIL PRICES REMAIN VOLATILE
Although the KSE-100 Index remained closer to psychological target of 50,000 yet the profit-taking and selling pressure kept the Index away from crossing the much-desired line of 50,000 as it closed the week at 49,925 after gaining 16 points on the last trading session of the week on Friday.
In fact the benchmark Index experienced a week of moving sideways due to lack of activity amid Securities and Exchange Commission of Pakistan (SECP) tough tone against the brokers not complying with the regulations. Index closed the week at 49,925pts, marginally up by 0.7% WoW.
Foreign Institutions Portfolio Investment (FIPI) registered net inflow of US$5.37mn. Average volume traded increased by 12% WoW while average value traded decreased by 9.6% WoW.
International Steel Limited, Sui Southern Gas, Jubilee Life Insurance Co Ltd, Arif Habib Corporation and National Bank of Pakistan were the major gainers while Pakistan Tobacco Company, Indus Dyeing, Mari Gas, National Foods and MCB Bank Limited were the major losers in the benchmark KSE-100 this week.
Meanwhile the international oil prices fell for third straight session after API data reported a huge inventory build of 14.2 million barrels this week, compared with the expectations for an increase of 2.5 million barrels. In addition, weaker oil demand from China and rising US oil inventories implied that global crude markets remain oversupplied despite OPEC-led efforts to cut output. However, participants will wait for EIA crude oil inventory data later in the day.