Stocks turn bullish during week, hit 41,000

KSE-100 index gains 587 points to settle at 41,007

KARACHI:

Pakistan Stock Exchange (PSX) experienced a rangebound trading week as the benchmark KSE-100 index swayed between positive and negative territories owing to multiple developments but bulls managed to push the market above the 41,000- point mark.

On Monday, the trading week kicked off on a positive note because of optimism about the resumption of IMF loan programme with investors opting to purchase shares of fertiliser and energy companies. However, investor sentiment flipped as Defence Minister Khawaja Asif announced the government’s energy conservation plan that would enforce market closure around 8:30pm. Negative momentum continued on Wednesday amid thin market participation. In that situation, the investors took a cautious approach.

After remaining range bound, some recovery was witnessed on Thursday but volumes stood low. On the last trading day, investors cherished the announcement of likely visit of an IMF team in the next two to three days. As a result, the index surpassed the 41,000 mark. The KSE-100 index closed the week up by 587 points, or 1.5%, at 41,007 compared to the previous week. “Carrying last week’s momentum, the KSE-100 index closed at 41,007, up 1.5% week-on-week,” said JS Global analyst Muhammad Waqas Ghani. “Investor participation, however, declined 18% week-on-week.”

Key performing sectors were refinery (8.9%) and exploration and production (4.3%). “The refinery sector was in the limelight on expectation of positive news about the pending refinery policy,” the JS analyst said.