The stock market underwent negative sentiment as delight leading up to MSCI’s official announcement settled down. PHOTO: INP
KARACHI: The stock market underwent negative sentiment this week as delight leading up to MSCI’s official announcement settled down, with the index closing the week at 50,742, down 1.9% or 1,009 points.
The week started off on a bullish note with the index gaining 1.2% in the first trading session of the week on the back of MSCI euphoria.
However, confusion regarding pro forma weight in the MSCI emerging market index resulted in bearish sentiments for the remaining part of the week. With daily turnover registering a notable decline, investors seem to be waiting for clarity on multiple fronts, including the upcoming budget.
On a sector-wise basis, banks (-3.6%), cements (-3.8%) and power generation companies (-4.1%) were the major laggards. In the power generation sector, Hubco (-7.43%) led the downside on reported foreign selling. Major banks succumbed to profit taking after MSCI-inspired rally.
The overall activity of foreign investors picked up with an average volume of $74.9 million/day (+48% week-on-week), however, they remained net sellers of $16.4 million during the week. Local institutional investors such as banks and local companies stayed sellers with $4.8 million and $4.7 million worth of net selling, respectively during the week, putting pressure on the overall index.
On the other hand, local Individual investors continued to show optimism with $6.8 million worth of net buying.
Furthermore, trading activity remained muted during the week with average daily trade and average daily traded volume witnessing a decrease of 1.5% and 5.5% week-on-week, respectively.
During the week, National Accounts Committee (NAC) released provisional GDP growth data for FY17 wherein country’s economy grew by 5.28%. Furthermore, Annual Plan Coordination Committee approved Rs2.113 trillion for next year’s PSDP.
Winners of the week
Crescent Jute
Crescent Jute Ltd manufactures and markets jute and cotton textiles.
Shifa International Hospitals
Shifa International Hospitals Limited establishes and runs medical centres and hospitals in Pakistan. The company’s clinical services include medicines, paediatrics, surgical, obstetric and gynaecology, dentistry, rehabilitation services and ophthalmology.
Pakistan International Container Terminal
Pakistan International Container Terminal operates a container shipping facility in Karachi.
Losers of the week
Pak Suzuki Motor
Pak Suzuki Motor Company Limited manufactures, assembles and markets Suzuki cars, pickups, vans and 4X4 vehicles.
Orix Leasing Pakistan
Orix Leasing Pakistan Limited is a leasing and diversified financial services company. The company offers full pay out finance leases for machinery, office automation, computers, vessels, aircraft and automobiles. Orix financial service products include loans, rentals, security brokerage, options trading and life insurance products.
United Bank
United Bank Ltd provides commercial banking and related services. The bank offers a wide range of banking and financial services, including brokerage services.
Published in The Express Tribune, May 21st, 2017.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ