The benchmark KS-100 index of Pakistan Stock Exchange (PSE) during the week witnessed downward movement dropped by 401 points closed at 40,486 at week end. domestic equity bourse remained under pressure at the start of the week as speculation over the weekend suggested that a deal had been secured with the IMF, but by Monday morning it was clear that this was just a rumor. Moreover, Moody’s changed the banking system outlook to B3 negative which added further pressure on the market.
The index closed down by 1% at 40,487 pts. Sector-wise negative contributions came from Commercial Banks (128pts) as Moody’s downgraded ratings of Pak banks, Oil & Gas Marketing Companies (86pts), Fertilizer (70pts), Tobacco (45pts), and Automobile Assemblers (40pts).
On the flip side, sectors that contributed positively include Oil & Gas Exploration Companies (70pts), and Cements (17pts). Scrips that dragged the index down were HBL (74pts), PSO (64pts), PAKT (45pts), BAHL (29pts) and PSEL (26pts).
Foreign buying continued this week clocking-in at USD 12.1mn compared to a net buy of USD 12.2mn last week.
Major buying was witnessed in Cement (USD 5.8mn) and Commercial Banks (USD 2.9mn). On the local front, selling was reported by Broker Proprietary Trading (USD 6.3mn) followed by Companies (USD 4.7mn).
Volumes during the week settled at 136mn shares (down by 29% WoW) whereas value traded arrived at USD 45mn (down by 28% WoW). Other major news dominated the market were reserves up by USD 11mn to USD 14.896bn, Pakistan meets all FATF requirements, USD 21bn Saudi investment likely, Jul-Jan FY19: Trade deficit down by USD 2bn due to RD on imports: Dawood, Remittances up 12.22% to USD 12.774bn in seven months, and Moody’s changes banking system outlook to B3 negative.
Analysts at Arif Habib Limited said that the market to recover from recent correction and remain upbeat in the following week with the Crown Price of Saudi Arabia Mohammad Bin Salman visiting Pakistan to sign historic deals, further strengthening our relationship with the gulf giant.
Whereas the ongoing result season could keep certain scrips under limelight; PSO, FCCL, KAPCO, ENGRO, MLCF, HBL, MARI, MCB, UBL, NPL, HUBC, AKBL, BAFL, KOHC, NBP and OGDC have board meetings scheduled in the upcoming week.