PSX shows subdued performance, selling of Euro and Sukkuk Bonds might lift sentiment
KSE-100 index registered only a marginal drop of 0.6 percent to close at 40,010 this week.
KARACHI (Dunya News) - The stock market moved in a narrow band over the preceding week where the dharna at federal capital overshadowed any advance movement and index showed a marginal decline.
The benchmark KSE-100 index registered only a marginal drop of 0.6 percent to close at 40,010, thanks to a timely resolution between the government and religious parties. Protests from religious parties were witnessed across the country over the weekend after the government had launched an operation against their sit-ins in Islamabad.
The sentiments progressively improved during the week as the Prime Minister agreed to utilize local furnace oil to run power plants, giving some respite to Oil Refineries, which had come under pressure during the past week due to sudden shift in government’s policy of using RLNG in place of furnace oil.
The week also brought in new hope for K-Electric, where the share jump by 5.16 percent, where expectations are starting to build again over completion of strategic sale of the power utility to Shanghai Electric as NEPRA may look to reconsider its multi-year tariff.
On the last trading day, news emerged of Pakistan successfully raising 2.5 billion dollars, through sale of 1.5 billion dollars 10-year Euro Bonds and 1 billion dollars a five year sukkuk at the international capital markets. The pricing terms also appear favorable given that the profit rates on Eurobonds and Sukuks settled at 6.875% and 5.625%, respectively
During the week, foreigners were net sellers of 39.4 million dollars, whereas local Individuals were net buyers of 8.6 million dollars.
Fresh week to start with new hopes and political happenings and some economic driven decision to dictate the course of the market.
(Story by Haris Zamir)
