The market closed the week down 2669pts to close at the lowest level for 2017, at 46858. The last low was hit right before the Panama verdict announcement in mid April. Turnover for the week averaged at 255mln shares while value traded was Rs10.7bln. Turnover was up 6.7pc while value was down 9pc. Since peaking in May, the KSE100 is down a whopping 6000pts or 11pc. 4600pts have come off since May 31, 2017, after the inclusion of Pakistan in MSCI EM. Turnover was weak on the last trading day of the week with only 128mln shares changing hands. This is a 60 day low.
The ongoing investigation against the PM in the Panama case has created political uncertainty which the market abhors. Additionally, incoming flows on MSCI EM inclusion have been offset by outflows creating doubled down bearish sentiment, as the market takes a rough tumble.
Oil stocks had a bad week, with crude prices weakening further as the oil glut shows no sign of responding to OPEC supply restrictions. Prices fell accross the board with all major sectors teetering.
Going forward, we expect volatility, with the market moving both ways as sentiment regarding the outcome of the JIT shifts, and possible entry by foreign funds as the market has shaved off almost 9pc of value since May 31, 2017. Outflow this week was USD9.5mln.
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