The KSE-100 index mostly remained in the red territory throughout the week amid spillover effect from last week’s confrontation between Pakistan and India. Though the de-escalation process started last week with Pakistan offering to help India with investigation, investors remained skeptical. Furthermore, lack of positive triggers kept the sentiment lackluster.
Meanwhile approval of the Finance Supplementary Bill 2019 by the National Assembly could not uplift the confidence of market participants. With that said, tally at week end suggests that the equity bourse settled at 38,950 points, shedding 589 points (down by 1.49%) WoW.
Sector-wise negative contributions came from Oil & Gas Exploration Companies (230pts), Commercial Banks (127pts), Power Generation & Distribution (78pts), Fertilizer (63pts), and Cement (63pts).
Whereas, sectors that contributed positively include automobile Assemblers (91pts) given grant of permission to non-filers to purchase locally assembled vehicles as per Finance Bill, and Inv. Banks/Inv. Cos./ Securities Cos. (30pts).
Scrip-wise major laggards were OGDC (111pts), PPL (92pts), MCB (84pts), HUBC (83pts) and ENGRO (39pts).
Analysts at Arif Habib Limited said that the foreign selling continued this week clocking-in at USD 3.5mn compared to a net sell of USD 1.3mn last week.
Selling was witnessed in Commercial Banks (USD 2.6mn) and Exploration & Production (USD 2.6mn). On the domestic front, major buying was reported by Individuals (USD 5.1mn) and Companies (USD 3.5mn).
Volumes during the week settled at 114mn shares (down by 29% WoW) whereas value traded arrived at USD 33mn (down by 35% WoW).
Other major news: PSO receives Rs 60 billion from power sector companies, Atlas Honda, Yamaha increase bike prices, Government likely to remove 4% super tax levied on banks, Chinese companies commit USD 2 billion to PM’s housing project.
Despite reduction of noise from Eastern neighbour, investors are likely to take a cautious approach. Whereas conclusion of result season could also keep the market range bound. Furthermore, any clarity regarding a potential IMF program can be a positive trigger for the index. We advise investors to go long and focus on value buying.