Friday, June 5, 2020

Pakistani bourse echoed global stock markets, touches 17-month high levels

Featured

Bolstering the economy during the COVID-19 pandemic

As the tally of Coronavirus cases in Pakistan crosses 80,000, the impacts of the pandemic are beginning to gain...

Australia pledges $207 million for a regional vaccine program

Australia will pledge 300 million Australian dollars (207 million US dollars) to provide vaccines for children in the Indian...

The UN Economic Council holds a meeting to discuss helping governments recover from Corona

The United Nations Economic and Social Council UN ECOSOC held a wide-ranging political debate to explore funding options for...
Zain Zubair
Zain Zubair
Zain Zubair is a staff writer for World News Observer. He is studying ACCA in Pakistan. Besides Accountancy and writing pieces, he loves cooking and nature photography. Zain has attended various modern journalism workshops. Contact: [email protected]

Pakistani bourse depicted a mixed trend during the outgoing week with the benchmark KSE-100 index witnessing some weakness at the beginning of the week amid rising conflict between Iran and the US. Sentiments further worsened mid-week given Iranian strike on US Military base in Iraq. Albeit, the Pakistani bourse echoed global stock markets, depicting a swift rally post speech of the 45th POTUS Donald Trump, which helped deescalate tensions. With that, the market breached a 17-month-high level of 13k to close at 43,207points (up by 2.1% WoW, +884pts WoW).

Sector-wise positive contributions came from Commercial Banks (403pts), Oil & Gas Exploration Companies (178pts), Fertilizer (111pts), Power Generation (86pts), and Cement (77pts). Whereas! Negative sector-wise contribution came from Automobile Assemblers (44). Scrip-wise positive contributions were led by HUBC (105pts), HBL (95pts), PPL (88pts), LUCK (87pts) and UBL (73pts).

Foreign buying witnessed this week clocking-in at USD 7.0mn compared to a net sell of USD 7.3mn last week. Buying was witnessed in Fertilizer (USD 5.9mn) and E&Ps (USD 1.8mn). On the domestic front, major selling was reported by Mutual Funds (USD 5.9mn) and Individuals (USD 4.0mn). Average Volumes settled at 303mn shares (up by 8% WoW) while average value traded clocked-in at USD 78mn (up by 13% WoW).

Other major news: Pakistan moves US court to stop over USD 6bn fine in Reko Diq case,  Govt expects economic recovery by end of FY2020, Under TAPI project: Pakistan to seek reduction in cost of gas import, Public debt inches up 1.08% to PKR 32.130trn in July-Nov,  Lend PSO a helping hand, ECC asks MoF, and ‘Prices of 89 essential medicines reduced by 15pc’.

Pakistani bourse broke through its key resistance levels this week

As the market broke through its key resistance levels this week, Analysts at Arif Habib believe the upwards trajectory may continue next week. Fundamentals appear intact with stable PKR, compressing current account deficit, and inflows in T-bills, PIBs and the local bourse, should all bode well for the index. AHL analysts advise investors to invest in blue chip scrips. The KSE-100 index is currently trading at a PER of 7.6x (2020) compared to Asia PAC regional average of 12.5x and while offering DY of ~6.3% versus ~2.7% offered by the region.

Read also: Pakistan: Reforms agenda fully on track, no need to renegotiate IMF program

Zain Zubair
Zain Zubair
Zain Zubair is a staff writer for World News Observer. He is studying ACCA in Pakistan. Besides Accountancy and writing pieces, he loves cooking and nature photography. Zain has attended various modern journalism workshops. Contact: [email protected]

Latest News

Bolstering the economy during the COVID-19 pandemic

As the tally of Coronavirus cases in Pakistan crosses 80,000, the impacts of the pandemic are beginning to gain...

Australia pledges $207 million for a regional vaccine program

Australia will pledge 300 million Australian dollars (207 million US dollars) to provide vaccines for children in the Indian and Pacific region, Australian Minister...

Emergency in Russia after 20 thousand tons of fuel leaked into a river in Norilsk

Russian President Vladimir Putin has ordered the lifting of the state of emergency in the city of Norilsk, Siberia, after 20,000 tons of fuel...

The UN Economic Council holds a meeting to discuss helping governments recover from Corona

The United Nations Economic and Social Council UN ECOSOC held a wide-ranging political debate to explore funding options for the pandemic and to mobilize...

Tokyo to issue an alert on the Coronavirus after 34 new cases have been confirmed

Japanese government sources said today, Tuesday, that the capitalist government of Tokyo is considering issuing what the governor of Tokyo, Yoriko Koike, called "the...

Related News