KARACHI: Pakistan Stock Exchange (PSX) benchmark KSE-100 index closed in green on 3/5 days and ended the week at 37,338pts down by 184pts, 0.5 percent for the week ended April 12, 2019.
“While low GDP forecast by the IMF and cement price cut mid-week in North and South ruined market sentiment initially, growth in remittances, positive outcome of the Finance Minister’s meeting with World Bank and IMF in the US, anticipation of another Amnesty Scheme together with talks of cement price restoration by cement manufacturers, revived the colour of the market,” an analyst at Arif Habib Limited said.
“The KSE-100 index declined to its 3-year low level during the week. However, with expectation of support from state-owned enterprises brought an adrenaline rush to the local equities market, giving gain of 1.5% on the last trading session of the week,” Amreen Soorani at JS Global said.
Average volumes increased by 25% to 148 million shares/day, while traded value increased by 36% to US$34 million. Foreign investors remained net sellers with US$2.2 million cumulative net selling during the week, broadly witnessed in Banking (US$3.9 million) and Power (US$0.7 million) sectors.
Other key news during the week were (1) the government reviews FBR proposal for Rs729 billion additional taxes for budget FY20, (2) Pakistan to pay back US$1.129 billion next week on maturity of 5-year international bond, (3) World Bank and IMF share Pakistan economy’s forecast with lower growth and higher inflation expectations, (4) amnesty scheme to be launched later this month, (5) SBP reserves fall by US$220 million to US$10.271 billion and (6) auto sales for Mar-2019 report 2% YoY growth.
Going forward, analysts expect the market to turn positive in upcoming days with triggers including Amnesty announcement and agreement with the IMF (principal agreement has been reached but staff level arrangement remains pending). Moreover, budget proposal will continue to flow in and keep certain sectors under limelight. We advise investors to pick value stocks trading at cheap multiples and offering long term riches.[the_ad id=”31605″]