KARACHI, Feb 17 (INP) – The share price movement during the outgoing week was quite narrow as investors received a jolt after development that the country will be on the watch list.
Benchmark remained flattish, losing 181.70 points or 0.41 percent.. The average volume traded on the all-share index was recorded at 148 million shares.
Foreign participants were net seller, with cumulative selling amounting to 15.44 million dollars during the week, which could be mainly attributable to pricing in of Pakistan being placed on a global terrorist financing list and uncertainity linked to US interest rate hike.
With weak macro-fundamentals intact and the addition of global uncertainty to the mix, analysts thereby advice, investors to exercise caution and limit exposure to sound blue chips name with steady dividend yields.
Key sector development during the week were (i) favorable verdict on banks pension case where Supreme Court (SC) fixed Rs 8,000 for retired employees along with 5 percent annual increase in pension causing the banking sector to end the week up 2.5 percent, (ii) SC directed Sindh High Court (SHC) to announce its decision on medicine prices falling under hardship cases which dragged pharmaceutical sector by over four person during the outgoing week, and (iii) Pakistan Automotive Manufacturers Association (PAMA) announced 13% YoY jump in auto sales volume (23,562) where Indus motors buckled the trend and was the only passenger car maker whose volumes dropped 7% YoY to 5,381 units.
Another analyst from BMA Capital research said that amid heightened geopolitical tension and roll over of futures in the up-coming week, we expect investors to remain on the sidelines where outcome of FATF meeting next week (18th-23rd Feb’18) may act as a key catalyst for market direction. Furthermore some important financial results are scheduled for the coming week.