The market shot up by an aggregate of 1970pts to close at 41842, after breaching 42000 during the day. Average turnover for the week was 484mln shares up 42pc WoW while value traded was Rs 16bln up 40pc WoW. It is telling that not a single share in the top 30 volume or value leaders suffered a decline for the week. Resolution of the immediate political crisis of PTI vs the Government was responsible for a resurgent index. On top of that S&P rerating for Pakistan, and Renaults plan to enter the auto market were strong drivers for value seekers. Expectations of further foreign flows encouraged investment. USD21mln inflow during the week was instrumental in the rally.
Banks powered ahead after strong foreign flows, while cements put on tepid gains. Engineering sector saw heightened activity on back of duty impositions.
We expect the market to consolidate before looking to breach 42000, all the time keeping a close eye on news flow regarding the Panama Leaks Comission.
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