Pakistan Stock Exchange – KSE100

KSE – 100 performance was relatively lackluster throughout the last week, as lack of direction continues to haunt investors. The index saw a heightened interest from Banks/DFIs, companies and individuals throughout the week. Individual Investors have been flocking to the market as political tensions subside and market continues to be underpriced.

Pakistan Exchange is beginning to show signs of progressive and healthy recovery. According to industry experts, it is expected to make a comeback till the interim government takes power in 2018

[Exhibit: 1 – KSE100 Performance last week]

The KSE-100 lost a total of 982.5 points during the week, opening at­ 42087.89 points on Monday and closing on 41105.40 points on Friday; a 2.33% decrease.

Foreign/Local Investment – NCCPL

By Investor

Banks/DFIs, Companies, Individuals and Insurance Cos were net buyers throughout the week whereas Foreign Corporates, Brokers Proprietary Trading and Mutual Funds offloaded their positions in the market.

[Exhibit: 2 – Total Investments by Investor Type]

By Sector

Cement, Commercial Banks, Technology & Communication, Fertilizer, and Food & Personal Care Products were the pick of investors during last week whereas, Oil & Gas Exploration Cos., Oil & Gas Marketing Cos, Power Generation & Distribution and Textile composite couldn’t garner much interest.

[Exhibit: 3 – Total Investments by Sector]

Weekly – Sensitivity Price Index

Weekly Sensitive Price Indicator up by 0.05% from last week (19-10-17).

The weekly SPI is computed with base year of 2007-08=100 covers from 17 urban centers and 53 essential items for all income groups/quintiles. Of the items covered, average prices of 10 items registered an increase whereas average prices of the 13 items registered a decrease.

Liquid Foreign Reserves – Weekly

During the week ending 20 October 2017, SBP’s reserves decreased by US $ 216 million to US $ 13,942 million due to payments on account of external debt servicing.

Oil Prices

Oil prices witnessed a rebound in the last week as prices of WTI and BRENT in the international markets picked up amid the rising geographic tensions and the strengthening talks of OEPC led extension cuts well into 2018.

According to analysts, Saudi Arabia and Russia are showing strong signs of extending the oil cuts well into 2018. With Saudi Arabia, the de-facto leader of the cartel, and Russia onboard, it can be expected that the rest of countries would also follow suit.

Furthermore, Saudi Aramco Chief Executive has also said that the company is not worried about the Shale deposits and competition it faces from US. He said that the US Shale industry is currently at the sweet spot in terms of the extraction, however, the deposits are not going to last and the oil markets would recover significantly there from.

Both of the crude benchmarks, WTI and BRENT prices managed a significant upward pull on Thursday. BRENT crossed the 60 $ psychological barrier, whereas the WTI prices inch closer to 54 $ mark.  

West Texas Intermediate

[Exhibit: 4 – West Texas Intermediate prices last week]

BRENT

[Exhibit: 5 – BRENT prices last week]