ISLAMABAD – The upward revision in policy rates, some business-friendlyrecommendations in mini-budgets, and inflows of foreign exchange havebounced back the bullish trend at Pakistan Stock Exchange (PSX), withforeign traders making their comeback on quite a positive note.
Foreign investors continued to remain the major net buyers for the secondconsecutive week, mopping shares worth $12.3 million. The KSE-100 Indexgained 848 points (2.1%) during the week as the market activity alsoremained elevated during the week with the average daily traded volumesinching up by 3.8% WoW to 175 million shares.
The index was mainly driven by banks, oil marketing companies, AutomobileAssemblers, and Oil Exploration & Production Companies (E&Ps) contributinggains of 234 points (28%), 129 points (15%), 83 points (10%) and 74 points(9%) respectively in the benchmark index.link
Banks remained in the limelight, returning 2.2% during the week owing toforeign buying, a surprise increase in Policy Rate by 25 base points to10.25% and SBP’s tacit signal of further monetary tightening in the future.This will bode well for the banking scrips projecting growth in interestincome.
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Automobile assemblers returned 6.4% during the week on supplementarybudget’s recommendation of lifting a ban on non-filers to purchase up to1,300cc cars and policy to tighten loopholes for importing cars. Pak SuzukiMotors (PSMC) being the chief beneficiary of the ban rallied 27.6% duringthe week.
OMCs and refineries returned during the week due to a complete ban imposedon imports of furnace oil.
