POLITICAL NOISE KEEPS THE INDEX AWAY FROM 50,000 TARGET
KSE 100 Index dipped by 72 points to close in red at 49,623 levels on the last trading session of the week on Friday. In fact the political noise forced the investors to prefer to book profits on the back of heightening of the political noise which kept the index away from the target of 50,000 levels.
The investors also have a leaning to strengthen their position of off-loading their positions prior to a two-day gap ahead which resulting in selling pressure amid market volume of 392 million all shares.
Actually the Index started on a bearish note as political noise kept the index in check, however, market sentiments started to change towards the latter half of the week. Index closed the week at 49,623pts, marginally up by 1.3% WoW. FIPI registered net outflow of US$32mn.
The average volume traded decreased by 6.4% WoW while average value traded decreased by 1.0% WoW.
Meanwhile, the international oil prices were dipped three-week low and once again fell on Thursday to US$52.50/bbl after US dollar index surged higher against the basket of major currencies, making crude oil more expensive to holders of other currencies.
However, recent data showed weak compliance from Russia as the output remain unchanged at 11.11 million bpd in the month of February. Furthermore, Russian Energy Minister said it was too early to say if the deal would be extended beyond June 2017.
On the trading scene the Indus Dyeing, PICIC Growth Fund, Crescent Steel, Pakistan Tobacco Company and Sui Northern Gas Ltd were the major gainers while Feroze1888, Nishat (Chunian) Limited, Shifa Int Hospitals Ltd, Nishat Chunian Power, and Bestway Cement were the major losers in the benchmark KSE-100 this week.