A weekly review: Stocks jump six-month high to 37,583.89 points

The PBS showed a 33.5% contraction in trade deficit in the first four months of the FY2019-20.

KARACHI (Dunya News) – The stock market demonstrated bullish trend during the whole trading week lifting the KSE-100 index by 1605.73 points to 37,583.89 points on the last trading day (Friday) as compared to its position at 35,978.16 points last Saturday.

With the continuous positive momentum throughout the week, the bulls rule the KSE-100 and cumulatively the index went up by over 4.46 percent, according to the week-long PSX trading data.

Besides, data from the Pakistan Bureau of Statistics (PBS), released on Thursday, showed a 33.5% contraction in trade deficit in first four months of the current fiscal year 2019-20. This has further bolstered investor sentiment.

Foreign investment in government backed treasury bills was recorded at almost USD 800 million since the beginning of FY20, attributable to waning concerns on the economic front has effectively supported the slight growth in FX reserves of the SBP and consequentially, kept the exchange rate parity stable.

Meanwhile, the opposition party, Jamiat Ulema-e-Islam-Fazl (JUI-F) called off its sit-in in Islamabad, shielding the political climate from heating up. This translated to positivity at the domestic equity bourse with the benchmark KSE-100 index gaining further momentum.

The market gain in the week was largely helped by overseas Pakistanis, whose net buying of USD 3.28 million allowed net FIPI to close as net buy of 4.32 million.

Among local investors, mutual funds and individuals cumulatively bought USD 21.30 million while Banks/DFIs and Insurance companies sold 25.05 million.

The week-long performance shows the index positively growing 340.69 (0.91%) points on Friday; 76.26 (0.21%) points on Thursday; 401.40 (1.09%) points on Wednesday; and 824.94 (2.29 %) points on Monday. However, or one day on Tuesday, the index witnessed bearish trend and recorded negative growth of 37.54 points (0.10).

According to break up figures, the KSE-100 index on Friday closed at 37583.89 points with positive change of 340.69 points (0.91%) compared to the closing at 37243.2 the previous day. A total of 369,038,836 shares were traded, valuing Rs9.587 billion.

Total 400 companies’ transacted shares in the Stock Market Friday, out of which 296 recorded gain and 94 sustained losses whereas the share price of 10 companies remained unchanged.

On Thursday, the index closed at 37243.2 points with positive change of 76.26 points (0.21%) while a total of 336,365,942 shares were traded, valuing Rs10.158 billion.

Total 395 companies’ transacted shares in the Stock Market Wednesday, out of which 228 recorded gain and 150 sustained losses whereas the share price of 17 companies remained unchanged.

The index noted bullish trend on Wednesday as KSE 100 index closed at 37166.96 points with positive change of 401.40 points (1.09%) compared to the closing at 36,765.56 the previous day. A total of 275,430,851 shares were traded with total value o Rs10.758 billion.

Total 379 companies’ transacted shares in the Stock Market Wednesday, out of which 230 recorded gain and 130 sustained losses whereas the share price of 19 companies remained unchanged.

However, the index on Tuesday stayed bearish and closed at 36,765.56 points as compared to 36,803.10 points on the last working day with the negative change of 37.54 points (0.10 %). A total of 292,060,810 shares were traded, valuing Rs9.991 billion.

The PSX on Monday had noted bullish trend as KSE 100 index closed at 36,803.10 points as compared to 35,978.16 points on the last working day with the positive change of 824.94 points (2.29 %). A total of 282,944,821 shares were traded with the value of shares traded during the day stood at Rs9.094 billion.

While improving macroeconomic indicators and investor sentiments could help the bourse’s upward momentum to continue in the near term, profit takers could take hold of the market as they look to cash in the high gains from the last two weeks, said an analyst from Habib MetroFinancial Services.

“We recommend investors to find exposure in blue-chip names at attractive levels and maintain our liking for E&Ps, Large Cap Banks and Fertilizers”, he said.

An analyst from Arif Habib said that the market may witness a temporary spell of consolidation, we expect the index to continue its upsurge going forward led by improvement in the macro-economic landscape.

Moreover, augmented participation by foreign and local investors (courtesy improved volumes) in the debt and equity space has also kept the sentiment upbeat.

“We advise market participants to cherry pick blue chip scrips and keep their view long”, he said.