A weekly review: PSX gain six month high, touches 35,978 points
The capital market during the outgoing week recorded appreciable gain of 1600 points.
KARACHI (Dunya News) - The capital market during the outgoing week recorded appreciable gain of 1600 points placing index at almost six month high level with aggressive buying from foreign and local fund houses on back of improvement in macroeconomic indicators and cut in government backed securities.
As per details, the index at Pakistan Stock Exchange closed at 35,978 points – a 6 month high (124 trading sessions), and up by 1601 points during the outgoing week.
Foreign buying was witnessed week clocking at 4.5 million dollars compared to a net sell of 3.1 million dollars last week. Buying was witnessed in Fertilizer amounting to 6.7 million dollars and OMCs 3.2 million dollars.
According to a leading trader the KSE-100 index continued its upward journey which commenced from the preceding week provided a return of 4.7 percent. The bull-run staged in mainly because of decline in government owned securities-National Savings Scheme, cut by 90 to 200 basis approximately.
This with decline in Pakistan Investment Bonds raise expectation of a rate cut in the near future. Moreover indication of the improvement in macroeconomic numbers and positive nod arriving from the International Monetary Fund that Pakistan has achieved all the set targets for the first quarter of new fiscal year and progressing well to improve economy also bodes well.
While few raised concerns and doubt that State Bank might delay cut in benchmark interest following below above inflation rate for October reaching 11.4 percent from September number of 11.37 percent. Soon date of monetary policy will be announced for two months.
An analyst from Arif Habib said the upswing in the market may be met with some profit-taking next week. The continuation of the sit-in in the federal capital may create some apprehensions which we expect to create some short-lived jitters in the market.
“We expect the stabilizing macro-economy to continue fueling the bullish trend over the medium to long term”, he said. “We foresee the market to stay positive in the near-term with the macro-economic indicators expected to keep getting better in the upcoming months”, said an analyst from Habib MetroFinance.
However, we suggest investors to build up their positions in fundamentally strong stocks with our continued liking in E&P’s, Fertilizers and Large-Cap Banks. Details by Haris Zamir
