KARACHI: The Pakistan Stock Exchange (PSX) finished off the last week of the year 2016 on a positive note with the KSE-100 index adding 1,175 points (2.52 per cent) to close at new all-time high 47,807 — a befitting end to a year that saw Pakistan market offer an enticing return of 46pc, the best among Asian peers and the fifth highest gain among global equity markets.

The outgoing week started on a positive note, after three previous consecutive sessions of profit-taking. Investors were inclined to take fresh positions in the banking and cement sectors though their overall participation remained dull with average daily volumes for the week declining by 15pc over the earlier week to 286m shares and average daily trading value down 14pc week-on-week to Rs14.8bn. Volume leaders during the week were DSL (114.5m shares), BOP (108.7m), KE (80.7m), DCL (75.2m) and TRG (45.2m shares).

Foreign investors continued to be net sellers, disposing of equity worth $19.1m in the week to take the total sell-off for December to $145.7m. Major outflow was seen in Oil and Gas ($6.3m), cements ($5.8m) and banks ($3.5m). Among local participants, individuals and mutual funds stood out as net buyers of $15.5m and $10.7m worth stock.

Top three sectors recording the highest gains during the week included tobacco, food and personal care and commercial banks, which were up 17.6pc, 4.8pc and 2.5pc, respectively. Textile sector receded 0.6pc.

According to AKD Securities, top gaining stocks during the week were: EFoods up 14.3pc week-over-week, HCAR 8.6pc, FCCL 7.7pc, Shell 7.5pc and SNGP 7.3pc while laggards included: HMB down 3.6pc, AICL 2.9pc, PSMC 1.2pc, POL 1.1pc and PTC 0.7pc.

Key news flows during the week included: CNG prices increased by Rs3.50/kg across Sindh marking the first hike following the government’s decision to deregulate the commodity; all the bids in the auction of PIBs were rejected; ECC approved export of 225,000 tonnes of sugar without any rebate and allocation of 26 mmcfd gas to Engro Fertiliser old plant.

OUTLOOK: In the upcoming week, analysts across the spectrum expect to witness a healthy start to the New Year at PSX, where E&P, banks and cement stocks were generally thought to remain in demand. Participation of foreign investors could pick up pace with the end of the holiday season. The CPI inflation numbers for Dec would be of interest.

Published in Dawn January 1st, 2017