PSX records highest weekly gain in over one year
Last updated on: 29 October,2018 09:00 pm
The outgoing week observed intermittent changes in investors' sentiments.
KARACHI (Haris Zamir) - Investors rejoiced this week as Prime Minister Imran Khan during his visit to the Kingdom of Saudi Arabia, successfully managed to secure the much needed funds (US$6 billion package) to support the balance of payment account. This news caused the index to surge by 2,126 points or 5.5 percent preceding week, the highest weekly gain for over a year. A similar package is expected from other friendly countries like China and UAE which further cemented investors’ confidence.
Fertilizers, Oil & Gas Exploration Companies and Commercial Banks led the way in sector-wise gain, due to their attractive valuations, contributing 1,051 points cumulatively to the index.
Foreigners sold US$17.2 million worth of shares during the week versus net selling of US$19.1 million last week. On local front mutual funds were net buyers amounting to US$24 million, while Individuals and Banks were net sellers of US$9.9 million cumulatively.
The outgoing week observed intermittent changes in investors’ sentiments fueled by macroeconomic developments and on-going earnings season. Bears were seen in charge during the first leg of the week, however, the unveiling of an economy package from helped bulls to take comfortable position in the local bourses.
An analyst from Habib Metro-finance said that in the backdrop of the economic package, with two more on the cards (expected from China and Malaysia), rupee swiftly gained 1.4 percent in the open market and inter-bank market. However, the gain could not be sustained due to several question marks still hanging on multiple fronts. This, coupled with heightened fear of a reinstatement of local stocks from MSCI-EM to MSCI-FM led the exodus of the foreign funds in just four trading sessions in the preceding.
Adil Ghaffar chief executive officer at First Equity Modaraba said that Investors should keep a vigilant eye on upcoming Prime Minister Imran Khan visit of China. Financial assistance from China will be announced on or after November 03, 2018 which will eventually help index touching 45000 points level. Before the announcement, and in expectation of friendly and quid pro quo, this fresh rally might touch 42,000 points, same level when PTI took charge. Results showed mixed bags and continuous foreign selling were key concerns for the investors.
However, in last two sessions KSE volume, regular plus future, was over 500 m shares and value exceeds Rs. 13b. This shows the confidence of local investors on the leadership of the country, Ghaffar added.