PSX BENCHMARK KSE-100 MAKES HISTORY; RALLY IN OIL PRICES TRIGGERS OIL BASED STOCKS
KSE 100 Index which made a history by rising above 51,700 points level at the end of the week is well poised to achieve new highs in the coming week as the investor’s excitement is on the high prior to announcement of reclassification of its status as Emerging Market by the MSCI, expected on May 15, 2017. The KSE-Index ended on Friday, a last day of the week at 51,750.91.
It will not be out of place to mention that the demand growth of construction material especially the cement sector stocks have become the center of attraction for the investors. Almost all the cement units are expanding their production capacity while at present cement units are running above their capacity. The other sectors including financial, steel, oil and energy sectors are the highlights of the trading activity.
The market volume which also on a surge at 346 million all shares in the last trading session of the week due to brisk trading activity, witnessed rising interest of the investors. Summit Bank was the volume leader of the day with a trade volume of 34 million shares. The other two volume leaders were K Electric and Byco with trade volumes of 22 million shares and 19 million shares to their credit respectively.
Meanwhile, persistent rally in international oil prices as it rises to US$48.20/bbl as traders expect OPEC-led production cuts to extend beyond the middle of this year and additionally, the oil prices were also supported by the decline in US crude oil inventories during the week have strengthen the confidence in the Pakistan capital markets.
Actually, the week started off at a bullish note with the KSE-100 Index gaining 2.2% on the first trading session of the week as MSCI euphoria started building up. The foreigners remained net sellers during the week with a net foreign institutional portfolio investors (FIPI) outflow of US$2.6 million last week.
Adamjee Insurance, International Steel Limited, MCB Bank Limited, Faysal Bank and Crescent Steel were the major gainers while Indus Dyeing, Pak. Int. Cont. Ter. Ltd, Attock Cement, Soneri Bank and Bata (Pakistan) were the major losers in the benchmark KSE-100 Index this week.