Weekly Review

The KSE100 closed up 550pts for the week to close at 49851. Another assault on the 50000 level was made as an intra day high of 50098 was made. Average turnover was 263mln shares and value traded was Rs 14.23bln. Last weeks turnover was 358mln shares while value traded was 17.7bln. The week started on a low note with the index taking a tumble over the Panama JIT investigation but fears subsided replaced by optimism over inclusion of big ticket items in MSCI EM. Higher than expected inflation numbers fed into potential early interest rate reversal expectations lifting major banks. HBL, MCB, UBL, BAFL, all closed up over 5pc. 

Autos took a breather from last weeks stellar performance, while oil stocks were weighed down by falling international crude prices. Most of the price performance came from MSCI EM hopeful stocks.

Among actively traded stocks best performers were DFML, CSAP and EPCL. LUCK closed up 6pc. Engro was up 5pc. Worst performers were ASL, SEARL and SSGC closing down almost 5pc. 

Outflow during the week came in at USD19.3mln compared to USD10mln last week. Since the rally post Panama verdict has largely been led by local investors we expect the quantum of inflows from MSCI EM flows to determine the strength of the rally from here, given how in recent times the 50000 level has proven to be a tough target to breach.

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