November 3, 2019 (MLN): The KSE-100 Index gained another 720 points over the week and concluded at 34,377-mark, i.e. up by 2.14%, as compared to previous week’s closing of 33,657 points.
While this can be thought of as a remarkable increase as compared to previous weeks, the index is still down by 2,689 points as compared to December 31, 2018.
However, the benchmark index has recovered 5,612 points since its year low, which was on August 16, 2019 when it was on 28,764.
The performance of benchmark index was highly influenced by the auction held on Wednesday, wherein further drop in market yields of PIBs was witnessed. Resultantly, the investors were tempted to invest more in equity instruments than PIBs.
Commercial Banks, Cement Sector and E&P companies emerged as the top gainers during the week, as they collectively contributed 472 points to the index. Company wise, the scrips of DAWH, MCB, PSO, LUCK and DGKC earned the maximum gains.
Meanwhile, the KSE All Share Market Cap increased by Rs. 58.8 billion or 0.89% over the week, being recorded at Rs. 6.69 trillion compared to a Market Cap of Rs. 6.63 trillion recorded last week.
This week, the local investors bought securities worth of Rs. 40.2 billion, amongst which, Individual investors emerged as the largest net buyers as they bought securities worth Rs. 26 billion. On the other hand, local investors sold securities worth 39.7 billion. This resulted in an overall net buying of Rs. 485.5 million over the week.
Pakistani Rupee (PKR) continued to appreciate against the dollar, gaining another 23 paisa during the week. Resultantly, the US Dollar closed at 155.65, as compared to 155.88 from the last week.
As of now, Dollar is being traded at its lowest level since June 13, 2019.
Fixed Income Summary
Yields in the secondary market continued to tumble as the cut offs in the latest PIB auction declined by 115 bps for 3Y, 90 bps for 5Y and 89 bps for the 10 Year PIBs.
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