Recovery in international crude oil prices coupled with gains in the select banking stocks helped the benchmark KSE-100 Share Index gain 2.9 per cent during the last week of April. The Index closed at 34,719 points – its highest level of the calendar year 2016 – at the end of business on Friday.
The Index has rallied on the back of oil recuperation and stronger corporate profitability reported in the ongoing result season, AKD Research said in its report.
After an extended period of vulnerability, investor’s confidence recovered in spite of heavy foreign selling of $12.4 million, during the week. Major foreign selling was seen in the chemical sector with a total trading of $12.3 million, according to Topline Securities.
General Industrials, Oil and Gas and Industrial Metals and Mining were among the major gainers over the week as they rose by 5.5-6.2 per cent. On the flipside, Fixed Line Communications and Food Producers fell 2.8 per cent and 1.4 per cent, respectively.
During the week a major development was seen as the federal cabinet approved Budget Strategy Paper (BSP) for the FY2017. The government revealed targets – to spend Rs 1.497 trillion on development, reduce fiscal deficit to 4 per cent of GDP, increase the economic growth rate to 6.5 per cent and limit inflation to six per cent.
Average daily volume increased one per cent to 242.4 million shares whereas average daily value increased by 17 per cent to Rs 11.1 billion or $112.2 million in the outgoing week, market analysts said.
Among volume leaders were Nishat Mills Limited (up 11.05 per cent) followed by Oil and Gas Development Company (up 10.06 per cent), Habib Bank Limited (up 8.47 per cent), Fauji Fertilizer Bin Qasim Limited (up 7.66 per cent), and Sui Northern Gas Pipeline (up 7.25 per cent).
Pakistan Telecommunication Company, Pakistan State Oil and Kot Addu Power Company were among the stocks that depreciated during the week.