KSE in­dex posts max­i­mum weekly gain since 2013

Pakistan Observer - - ECONOMY WATCH -

OB­SERVER RE­PORT KARACHI—A his­toric last week at the bourse saw the KSE-100 in­dex pushed to its all-time high and close at 38,776.94 as the mar­ket cel­e­brated news of MSCI re­clas­si­fy­ing its Pak­istan in­dex to emerg­ing mar­ket sta­tus early on Wed­nes­day.

The re­clas­si­fi­ca­tion, which would take ef­fect next year, helped the mar­ket rally up 1,000 points on Wed­nes­day with the next two days be­ing rather sub­dued. Nev­er­the­less, the in­dex gained 5.0 per cent (1,836 points), for its high­est weekly gain since the first week of July 2013.

The news drove broad based buy­ing in­ter­est and the mar­ket wit­nessed his­toric highs dur­ing the week with key in­ter­est in the list of stocks to be in­cluded in both small-cap and main in­dex. Amidst eu­phoric trad­ing ses­sions, the mar­ket com­pletely dis­re­garded neg­a­tiv­i­ties such as PakAfghan bor­der ten­sions and tur­bu­lence in the po­lit­i­cal land­scape.

The MSCI re­clas­si­fi­ca­tion and Se­nate’s ap­proval of corporate re­struc­tur­ing Companies bill 2016 meant that the bank­ing sec­tor re­mained in the lime­light dur­ing the week, post­ing 13.1 per cent re­turn dur­ing the week with Habib Bank Lim­ited, MCB and United Bank Lim­ited post­ing dou­ble digit re­turn of 20.9 per cent, 14.8 per cent and 12 per cent re­spec­tively. Fur­ther­more, HBL, MCB and UBL cu­mu­la­tively added 901pts in the in­dex.

The ce­ment sec­tor fol­lowed on as it in­creased 6.2 per cent. En­gi­neer­ing was among the un­der per­form­ers as it fell 1.3 per cent dur­ing the week.

More­over, in­vestors also showed in­sen­si­tiv­ity to­wards 6per cent week-on­week de­cline in in­ter­na­tional crude oil prices as ob­served from 0.4per cent week-on­week in­crease in in­dex heavy­weight oil and gas sec­tor.

Da­wood Her­cules Cor­po­ra­tion ac­cu­mu­lated 97 points on the back of sub­stan­tial hold­ing in En­gro, another MSCI EM con­stituent, which helped scrip re­main in the lime­light.

Ad­di­tion­ally lat­est news sources con­firm the Eco­nomic Co­or­di­na­tion Com­mit­tee (ECC) has or­dered an in­crease in the price of RLNG by US$1.2/mmbtu, al­low­ing a se­ries of fac­tors that were pre­vi­ously re­jected by Oil and Gas Reg­u­la­tory Au­thor­ity (OGRA).

For­eign­ers also con­tin­ued to make the­matic in­vest­ments (per­tain­ing to MSCI and China Pak­istan Eco­nomic Cor­ri­dor) dur­ing the week with net in­flow recorded at $19.6 mil­lion.

The av­er­age traded vol­ume jumped 21 per cent week-on-week to 183 mil­lion shares while av­er­age traded value in­creased by 57 per cent week-on-week to $124 mil­lion.

Av­er­age daily vol­ume in­creased 21 per cent to 183.4 mil­lion shares, cou­pled with 57 per cent rise in av­er­age daily value to Rs13.0 bil­lion/$124.1mil­lion.

Habib Bank Ltd op­er­ates com­mer­cial bank in Pak­istan. The bank of­fers com­mer­cial, corporate, In­vest­ment, re­tail and In­ter­na­tional Group Bank­ing.

Pak­istan Ser­vices Lim­ited is the hold­ing com­pany for Pearl Con­ti­nen­tal Ho­tels (Pri­vate) Lim­ited, which con­structs, op­er­ates and man­ages ho­tels. The group also owns a num­ber of smaller companies that pro­vide renta-car, travel ar­range­ments and tour pack­ages.

Na­tional Re­fin­ery Lim­ited man­u­fac­tures and dis­trib­utes lube base oils and petroleum fu­els. The com­pany mar­kets its prod­ucts to cus­tomers through­out Pak­istan.

EFU Life As­sur­ance Ltd pro­vides a va­ri­ety of in­sur­ance ser­vices. The com­pany’s ser­vices in­clude loan pro­tec­tion plan, sav­ings plan, ex­ec­u­tive pen­sion plan and ed­u­ca­tion plan.

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