PSX witnesses bullish trend

KARACHI: Pakistan Stock Exchange witnessed bullish trend during the outgoing week ended on February 10, 2023 over expectations of positive outcome of the government talks with IMF.

The benchmark KSE-100 index surged by 1270.62 points on week-on-week basis and closed at 41,741.78 points.

Trading activities also improved as average daily volumes on ready counter increased by 117.2 percent to 284.07 million shares during this week as compared to previous week’s average of 130.78 million shares. Average daily traded value on ready counter increased by 112.1 percent to Rs 12.34 billion during this week against previous week’s Rs 5.82 billion.

BRIndex100 gained 134.73 points during this week to close at 4,174.21 points with average daily turnover of 255.929 million shares.

BRIndex30 increased by 699.43 points on week-on-week basis to close at 15,120.57 points with average daily trading volumes of 183.862 million shares.

Total market capitalization increased by Rs 207 billion to Rs 6.559 trillion.

An analyst at AKD Securities said that the week stared on a positive note as talks with IMF continued with the delegation that has been in Pakistan since 31st January.

Overall, investors remained hopeful regarding the meetings with IMF team. For this reason, market remains strong during the first four days of the week with KSE-100 index gaining 1,995 points. Come Friday, market nosedived over the conclusion of talks with IMF team, with KSE-100 losing 725 points on the last trading session of the week.

Sector-wise, textile weaving, oil & gas exploration companies and pharmaceuticals were amongst the top performers, up 13.0 percent/10.2 percent/9.4 percent respectively.

On the other hand, Leasing Companies, Synthetic & Rayon and Property were amongst the worst performers with a decline of 8.1 percent/2.2 percent/2.0 percent respectively.

Flow wise, major net selling was recorded by Insurance Companies (net sell: $6.5million). On the other hand, Individuals absorbed most of the selling with a net buy of $5.9million.

Company-wise, top performers during the week were OGDC (up 17.6 percent), TGL (up 15.5 percent), MUGHAL (up 12.9 percent), ABOT (up 11.6 percent) and SCBPL (up 10.6 percent), while top laggards were PGLC (down 16.8 percent), EFUG (down 7.3 percent), IBFL (down 5.5 percent), HUBC (down 4.4 percent) and JVDC (down 4.0 percent).

An analyst at JS Global Capital said that positive news flows helped lift the market this week as IMF and GOP talks over the 9th review entered final stages.

Increased focus of the govt. to work toward pending reforms like higher taxation measures and appropriate steps toward energy tariffs for the completion of the review within the stipulated timeframe instilled confidence among investors. On the last trading day, Finance Minister’s statement regarding no commitment on settlement of outstanding gas circular debt, limited OGDC and PPL’s week’s gains. The week ended with confirmation of receipt of MEFP by the Finance Ministry. KSE100 Index closed at 41,742, up 3.1 percent WoW.

Copyright Business Recorder, 2023