ISLAMABAD, Sep 22 (INP) – Pakistan Equities turned green during the week with index gaining 400 points or 0.98 percent to close at 41320 points.
An analyst from Topline Securities said that much of gain came after Mini Budget announced by Finance Minister of PTI government where index gained 718 points in a single day in Wednesday’s trading session. To note, the week ended early ahead of two holidays on account of Ashura.
The optimism was also clearly reflected in investors’ overall participation, where average daily turnover improved by 13 percent to 157 million shares while average daily volume was simultaneously up by 7 percent to 51 million shares. Foreign investors sold 12.6 million dollar worth of equities during the week, which coincided with FTSE Asia Pacific index rebalancing.
Much of the index gain was contributed by automobile assemblers and automobile parts & accessories, gaining 148 points as the select stocks Honda and Pak Suzuki gained 5 percent respectively owing to removal of ban on non-tax filers from buying motor vehicles.
To note, Auto stocks have taken a heavy beating during the year as concerns on economy and the said ban took its toll on the sector outlook. Further, pharmaceutical sector helped the index rising by 83 points to remain in green due to relief, provided by the Mini Budget on the import of medical equipment, analyst believe.
The news flow this week remained strong both on economic and political fronts despite a shortened trading week. In a major development, Economic Coordination Committee (ECC) finally approved hike in gas tariff for various consumer slabs.
The development was followed by unveiling of a mini-budget for FY19 and Prime Minister’s ongoing visit to Kingdom of Saudi Arabia. Mini budget proposal plus ECC meeting involved crucial decisions for fine tuning the macro policy with an objective to address key economic challenges.