KARACHI: Pakistan equity market closed up 2.43 percent during the outgoing week while stocks investors would watch outcome of Prime Minister’s visit of Saudi Arab next week.
Elixir Securities’ research team said investors would keep a close eye on Prime Minister’s visit to Saudi Arabia next week. The PM will seek financial aid of around US$5 billion in cash from Saudi Arabia and China (scheduled visit in November).
“We do not expect these developments to allow Pakistan to avoid an IMF Bailout,” said the Elixir team, “Nonetheless, any positive news flow from the Saudi visit can sustain the new found positive momentum in the market.”
The benchmark index at Pakistan equity market closed in green for three days out of five-day week to close at 38,430 points, up by 912 points (up 2.43 percent week on week).
Volumes during the week settled at 199 million shares (up by 13 percent week on week) while value traded arrived at US$49 million (down by five percent).
Foreign selling continued this week clocking-in at US$19.1 million compared to a net sell of US$32.6 million last week.
Selling was witnessed in Commercial Banks (US$8.3 million) and Exploration and Production (US$2.9 million).
On the domestic front, major buying was reported by Companies (US$5.8 million) and Individuals (US$5.1 million).
“With the PM visiting Saudi Arabia in the upcoming week (23rd Oct’18) and China following that (4th Nov’18), final consensus on external financing arrangement may be finalized in the weeks to come,” stated weekly analysis report of Arif Habib Limited.
Sector-wise contribution was led by cements (170 points), oil and gas marketing companies (117 points), fertilizer (98 points), automobile assemblers (89 points), and oil and gas exploration companies (81 points).
Negative contributions came from commercial banks (34 points) and tobacco (26 points).
Meanwhile, scrip-wise top positive contributors were: DGKC (52 points), POL (52 points), PSO (52 points), INDU (50 points), and PIBTL (50 points).
Other major news: Indus Motor Company drives up car prices, Shell seeks to secure profit margins in dollar, Ministry comes up with steps to overcome urea shortage, Forex reserves fall to US$14.613 billion, Chinese auto giant, Changan International, enters Pakistan, and ECC approves uninterrupted gas supply to export oriented industry.