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Bearish stocks bounce back last day on PM’s election

The investors kept a close eye on the activities in the parliament for the political maneuvering and the elections that took place. Accordingly, most of them remained on sidelines as the average volume declined from last 251 million to 208 million shares this week. The KSE-100 Index shed 396 points with a decline of market capitalization by Rs.61 billion to Rs.8.703 billion.

The market remained bearish for three days and shed 881 points. There were economic concerns for investors which were heightened by the publication of Fitch Rating report. The report highlighted the deterioration in external finances and address fiscal challenges, besides facing difficulties in attracting the external funding to meet its financing gap.

The last day Friday after the Prime Minister election the market climbed back by 485.56 as investors felt an air of clarity on the formation of government.

The opening day Monday at stock exchange was unexpectedly bearish although it started a day after the positive event of oath taking of the newly elected National Assembly . The concern of investors seem to be the deteriorating economic situation of the country. The KSE-100 Index shed 205 points to close at 42,637.59. The volume too declined to 163 million.

After the Independence Day holiday on Tuesday, the market on Wednesday opened on gloomy note. It was oscillating high and low during the day to find the direction. The results of the Attock Petroleum & Refinery boosted the Index while the results of Pakistan Oilfield, Attock Cement and International steal disappointed the investors.

The stock exchange continued its bearish trend on Thursday as Fitch Report highlighted economic challenges facing the economy. Pakistan’s ranking in the ease of business too declined to 147th rank in 2018.

The KSE-100 Index declined by 486 points to close 41,960.80.

On Friday, after the election of Imran Khan as the Prime Minister, the KSE-100 Index gained 486 points to close at 42,842.18. Sector contributing bullish trend were Banks by 145 points, oil and gas 44 points.



On average shares of 372 companies were traded. Of these 143 were gainers and 208 were losers and 21 remained unchanged.

Foreigners were net seller $6.34m during the week; companies were seller by $1.1m, Banks were buyer $0.94m; Mutual fund net seller $6.20m and individuals net buyers $5.85m.

Volume leaders during the week were: Bank of Punjab 46m; Pak Electron 30; World Telecom com.24m; Unity Foods Ltd 23m; Engro Polymer 22m; Lottee Chemical 17m; Descon 9m; PIA C (A) and K-Electric 6m; Yousuf Weaving 5m.

  • Fitch Report warns of CPEC curtailment under IMF programme.
  • Pakistan falls down to 147 rank on Ease of Doing Business Index.
  • Summit Bank and Sindh Bank merger likely by end of September
  • Power sector receivables rose to Rs.86 billion.
  • SBP held foreign exchange reserves sliding to $10.15 billion down by $216 million.

There was a declining trend in stock as the Index shed 396 during the week. Technically KSE-100 Index is targeting 30 DMA. The RSI and MACD are leading down at 41,485.

Raees Uddin Khan,
Research & Development Institute of Securities Management Research & Training (Pvt) Ltd, Karachi.
Dated: Aug 19, 2018

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