Panama’s decision, giving Prime Minister a reprieve, made the panicky investors to play out of fear during the close of the week, revving up the so-far fickle market.
“The outgoing week saw KSE-100 explode 2,132 points (4.5 percent) as the Supreme Court finally let the Panama cat out of the bag,” said equity analyst Adnan Sami Sheikh in a Topline Market Review. “Market participation surged as investors dished out all cash they had stashed under the mattress while waiting for the whole Panama drama to unfold.”
The KSE 100-share Index of Pakistan Stock Exchange (PSX) gained 4.48 percent or 2,131.59 points to close the week at 49,708.65 points. KSE 30-share Index rose 4.9 percent or 1,242.02 points to end at 26,453.93 points.
Average daily traded volumes picked up 62 percent to 278 million shares a day with foreigners remaining net sellers, offloading shares worth $31.97 million versus $2.84 million in the previous week as increased volumes allowed them to book gains and reshuffle their portfolios.
Elixir Securities, in a report, said though the Supreme Court’s judgment was not entirely in favour of the Prime Minister Nawaz Sharif as it ordered further probing, “the decision was cheered by the investors as it, for the time being, averted the threat of dismissal to the head of the state.”
Analyst Faizan Ahmed at JS Global Capital said adrenaline rushed into the veins of investors after a much-needed injection of Panama case’s outcome as the benchmark 100-share Index ran to the highest-ever 1,906-point increase in a day before closing up 1,140 points on Thursday after a roller-coaster ride. Index’s heavyweights drove the market. Exploration and production sector was up 6.1 percent, cement rose 4.8 percent, banks increased 2.7 percent, fertiliser jumped 4.7 percent and oil marketing companies climbed 7.5 percent during the outgoing week. Individual stocks, driving Index, were Hub Power Company (up 8.3 percent), United Bank (5.9 percent), Engro (6.8 percent), Pakistan Petroleum (7.4 percent), and Oil and Gas Development Company (4.8 percent). Amreli Steel Limited announced expansion in its billets and rebar capacity, while Punjab government unveiled its plan to launch the orange cab scheme as a youth employment initiative, which is expected to benefit Pak Suzuki. The stock was seen closing at its upper limit during the day.
Foreign direct investment soared 12.4 percent during the nine-month period of the current fiscal year. The country’s total foreign exchange reserves fell 176 million on weekly basis, while the International Monetary Fund projected a stable outlook for Pakistan’s economy with growth forecasts of 5.0 percent in 2017 and 5.2 percent in 2018.
