Daily Times

KARACHI: The Pakistan Stock Exchange (PSX) sustaining positive momentum from the last week amidst improved investor participation with volumes making a comeback closed up 1.2 percent Week on Week (WoW) at 48,971 points.

Silence over Panama-caseverdict and slow progress on margin financing product pushed concerns about the same to the background. However, investors retained caution with activity remaining lackluster during the week.

Average daily volumes showed an improvement of 39 percent WoW, rising to 258 million shares. However, the volumes remained well below FY17 till to date average daily volumes of 376 million, showing investor’s nervousness over the past few weeks where all eyes remained fixed on expected Supreme Court ruling in the Panama-gate case. K-Electric led volume charts with 140.9 million shares as National Electric Power Regulatory Authority (Nepra) determined the company’s 7 yaerr multi?year tariff (MYT) reducing its base tariff from Rs 15.57/kWh to Rs12.07/kWh which was followed by news reports of PM Sharif forming a committee to review the tariff after a meeting with Chairman of SPIC (Shanghai Electric’s parent company).

Habib Bank Limited (HBL) announcing plans to sell its Kenyan branches in exchange for 4.18 percent holding (13.28 million shares) in Diamond Trust Bank Kenya and Paki Suzuki Motor Company (PSMC) considering shelving its planned $450 million investment in spare parts plant and capacity expansion.

Foreign interest was positive during the week with inflows of $3.47 million compared to

$11.07 million net outflow last week.

SEARL (9.7%) was the major index mover during the week, contributing 77 points to the index while SNGP remained in limelight over expectations of increase in pipeline infrastructure in the country.

On the flipside, United Bank Limited (UBL) (-1.8%) and KEL (-5.2%) were the major laggards during the outgoing week with former declining over concerns of management overhaul while the latter turned red over the apex regulator (Nepra) determining an unfavorable multi-year tariff.

“We expect market to trade range bound and consolidate at current levels amidst lack of triggers with investors actively tracking clarity over Panama case”, said an analyst at Elixir Research.