PSX remains under selling pressure during outgoing week
KSE-100 index slides by 556 points to close at 46,071 mark
KARACHI (Dunya News): Pakistan Stock Exchange during the outgoing week remained under selling pressure which triggered on the last session of the week on one of the biggest historic decisions from the Supreme Court disqualifying the former Prime Minister Nawaz Sharif for the life-time.
The Pakistan Stock Exchange KSE-100 index slide by 566 points or 1.2 percent to close at 46071 points whereas the market capitalization slipped to Rs 9.443 trillion during the week ended April 13 compared with Rs 9.532 trillion of the preceding week.
The market since the start of the week witnessed technical correction and mostly moved in negative zone but some stocks remained in the green column on budget specific related news expected in the upcoming federal budget.
Amongst major sectors, on week on week cement sector lost weight by 3.2 percent and commercial banks 2.7 percent, whereas, some respite came in from automobile up by 2.1 percent followed by chemicals 0.8 percent on weekly basis.
However, on weekly basis K-Electric lead the trading chart where nearly 95.67 million shares changed hands. The main factor behind this limelight was the ratification by federal cabinet for issuance of National Security Certificate (NSC) for potential sale of 66.4 percent stake of K-electric to Shanghai Electric Power.
Moreover during the outgoing week investors kept a close eye on several economic developments which led to rally in different stocks. Talk of the market was the proposed measure to remove/reduce Gas Infrastructure Development Cess (GIDC) on feed/fuel stock in upcoming budget led to a rally in fertilizer stocks, emerging as top contributor to index (+67pts), said a report of Topline Securities. Amongst other beneficiaries of potential GIDC reduction Lotte Chemicals (LOTCHEM) and Engro polymers (EPCL), gained 2% and 5%, respectively during the week.
An analyst from BMA Capital expect investors to track budget related news flow next week with the anticipated announcement date of 27th Apr’18 where sector specific proposals may drive rally in certain sectors.
Furthermore, with the start of quarterly results season, any earnings surprise may act as a catalyst for market direction. Some of the big names which are slated to announce their financial results next week, include Mari Petroleum Company Ltd (MARI), Attock Petroleum Ltd (APL), Pakistan Oil Fields (POL) and Attock Cement (Pakistan) Limited (ACPL), he pointed.
