KARACHI: Bullish sentiments prevailed during the outgoing week at the Pakistan Stock Exchange (PSX), with the KSE-100 index closing 2.9 percent week-on-week (WoW) higher at 44,179. JS Research’s analyst Faizan Ahmed said political news remained at the forefront, however a protest rally held during the week failed to create any major impact, which calmed investors’ nerves, resulting in positive sentiments at the bourse in subsequent sessions. Index was driven by banks, cements, fertilizers and autos contributing 335 points, 260 points, 157 points and 112 points, respectively. Banks returned 2.6 percent WoW led by increase in expectation of higher inflation owing to Pakistani Rupee depreciation and resultant increase in interest rates. However the real thrust came from foreign buying which was largely concentrated in Banks, followed by Cements. Cements gained 6.4 percent WoW on the back Supreme Court’s allowance of multi-storey buildings (up to six-storey) in Karachi and continued regulatory delays on cement expansions in Punjab. Autos returned 5.7 percent WoW on regulatory controls on automobile imports under gifts scheme, which can significantly add to demand for locally assembled players. Trading activity declined during the week where average traded volumes and average traded value fell by 33 percent WoW and 28 percent WoW to 184 million shares and $ 80 million. Foreigners remained net buyers as they mopped up shares worth $ 33.1 million during the week, taking 2018 till-to-date net buying to $ 82.5 million. Domestic investors continued to sell into the rally as individuals and mutual funds offloaded shares worth $ 10.1 milion and $ 12.8 million during the week. “The market is expected to maintain its rising momentum if foreign buying continues at even half the pace observed so far in this year. The political noise also weakened during the week as Pakistan Awami Tehreek’s (PAT) called of its street protests. With regards to the sectors, we expect Banks and Cements to remain in limelight owing to inflationary pressures/resultant higher interest rates and regulatory developments with regards to expansions, respectively”, said Elixir Research Department. Published in Daily Times, January 21st 2018.