Weekly Review: PSX’s benchmark witnesses 0.06pc increase


Observer Report

Karachi—A shorter week, which saw just two days of trading, ended with the Pakistan Stock Exchange’s benchmark KSE-100 index registering an increase of 0.06 per cent or 23.45 points week-on-week. Eid holidays cut the week short as the exchange was only active for Thursday and Friday. On Thursday, traders tracked the near ten per cent drop in international crude oil prices, further fuelling the bearish trend. Many of the index heavy names soon followed suit, channeling much of the investor interest towards small cap names.
Friday followed a similar pattern, with investor interest fixated on small caps, WorldCall Telecom took the lead amongst low tier names as turnover in it alone would have constituted the entire turnover in the bourse on a rather listless day. Furthermore, chemicals looked promising to investors on Friday on the back of depressed crude oil prices. Optimism, largely fuelled by penny stocks picking inordinate value, meant that bullish streak once again took hold on the last trading day of the week and managed to push the benchmark back to and a little over the previous week’s closing.
According to Elixir Securities analyst Faisal Bilwani, a volatile market is expected next week with index names tracking institutional activity while speculative and penny plays will continue to lead volumes. “We advise caution in jumping on bandwagon in third tier stocks and recommend staying long in fundamentally strong liquid names at current levels.”