KARACHI: Investors' sentiments remained optimistic at Pakistan Stock Exchange (PSX) during the last week backed by a number of positive news on the economic front. The major triggers, which kept the market in the green zone, were the expected positive outcome of IMF talks, Saudi Arabia package of $4.2 billion and Pak rupee appreciation against the US dollar.
The benchmark KSE-100 Index gained 607 points during the week ended on October 29 and the index closed on an optimistic note at 46,185 points compared to 45,578 points a week earlier. Volume traded on the bourse was 202 million shares per day, down 33 percent WoW.
BRIndex100 rose by 44.22 points on a week-on-week basis to close at 4,777.23 points at the end of the week as against 4,733.01 points a week earlier. Trading volumes stood at 840.099 million shares. BRIndex30 gained 173.12 points and closed at 20,512.42 points, up from 20,339.35 points of the previous week. Turnover at BRIndex30 was 598.13 million shares.
Analysts at JS said that the benchmark KSE100 index closed on an optimistic note at 46,185 levels having climbed 1.3 percent WoW. Average traded value declined 37 percent WoW to $40 million from $63.87 million a week earlier. The Engineering sector posted a green week as companies showed financial results which were higher than street consensus owing to inventory gains coupled with the industry's ability to pass on the impact of rising raw material prices to end consumers.
Cement sector also performed well, after it stayed under pressure for the past several weeks, owing to a drop in coal prices due to active measures taken by the Chinese government.
They said that the overall sentiment was backed by a number of positive news and major trigger being the commitment by Saudi Arabia to provide a support package of $4.2 billion to Pakistan out of which $3 billion are to be deposited in State Bank and the rest $1.2 billion are to be used to finance oil derivatives throughout the year.
Pak rupee also appreciated to Rs172.3/USD on the last day of the week following this news after dropping to its lowest level at 175 in the interbank market on Tuesday. In addition, notification of the appointment of DG ISI was another positive development during the week.
According to the monthly review by Topline the KSE-100 index increased by 2.9 percent on a MoM basis. Major events during the outgoing month were negotiation between Pak-IMF, where talks have reached final stages after government largely complied with IMF conditions with respect to power tariff hike, gas price hike going forward, reduction in sales tax exemption, rollover of debt from friendly countries, monetary tightening going forward along with other measures.
Auto Sales (as reported by PAMA) for the month of Sep-21 clocked in at 22,235 units (up by 2 percent MoM and 59 percent YoY. While, there were news reports suggesting that automakers are likely to raise prices for some car models from November 1st to mitigate the impact of rising commodity costs and currency depreciation.
FATF in its plenary meeting retained Pakistan on grey list and Pakistan plans to issue a dollar-denominated Sukuk $1bn within the next two months, were also hot news of the month.