Index gains 175 points in roller-coaster week

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Observer Report

Karachi

It was a volatile week at the bourse, which ended with an anti-climax, as the index failed to reach the coveted 50,000-point level despite coming close on multiple occasions. The KSE-100 index gained 175 points or 0.4 per cent week-on-week to close at 49,210.5. It reached an all-time high multiple times, but profit-taking meant gains were wiped off, especially on Friday when the index lost 306 points.
Index started the week on a dull note with textile sector as an exception as investors took bets on the much anticipated export relief package to be announced by the prime minister. The announcement of Rs180 billion package on Tuesday provided further conviction throughout the week.
Engineering sector continued its winning streak on the back of increasing demand as government signed the financial close of 870 megawatt Suki Kinari hydropower project.
Hub Power Company Limited (HUBC) was also among the investors’ favorites, after it decided to increase its stake in the joint venture with China Power from 26% to 47.5%.
Fertiliser sector saw heavy selling amidst news that government discontinued fertiliser subsidy, which was restored on Friday. Exploration and production (E&P) was also another major sector that trimmed index gains. Bearish trend in E&P’s is likely attributable to profit taking.
Pakistan Petroleum Limited (-6.18%), Engro Fertilizer (-4.96%) and Engro (-2.45%) were the major laggards during the outgoing week, cumulatively dragging index by 196 points. Foreigners remained net sellers, with significant increase in the quantum, offloading $46.5 million worth of shares, with selling primarily concentrated in fertiliser ($14.2 million) and cement ($13.1 million) sector.
Average daily volumes for the outgoing week posted an increase of 20% week-on-week to 489 million shares while average daily value increased 7% week-on-week to Rs23 billion/$216 million over the week. Pakistan International Container Terminal operates a container shipping facility in Karachi, Pakistan. TRG Pakistan operates as an information technology company. The company provides business support and software services to companies. TRG Pakistan manages call centers and offices located in Pakistan and elsewhere throughout the world.
Faysal Bank Limited provides commercial, consumer and investment banking services. Pakistan Petroleum Limited specialises in the exploration and production of crude oil and natural gas. The company also sells liquefied petroleum gas and condensates. Indus Dyeing and Manufacturing Company Limited manufactures and sells yarn. Engro Fertilizer Limited manufactures agricultural fertilisers. The company produces nitrogenous.

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