Sunday, 2 July 2017

PSX, Asia’s Best Stock Market Last Year,

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PSX, Asia’s best stock market last year, humbled in first half

The stock market rose 233 points (0.5%) during the week with only two sessions due to Eidul Fitr holidays.

The index climbed 379.54 points on Thursday, but fell 146.56 points the following day to 46,565.29.

Few investors are interested in trading patterns. Habib Bank increased by 1.2pc, Hascol 5pc, Pakistan cigarettes 4.9pc, Pakistan International Bulk Terminal Company 5pc and Honda Atlas Automobiles 3.5pc; These stocks added 116 points to the benchmark index.

Conversely, the lost share price fell 221pt, including Hub Power, which fell 3.5pc, 3.1pc for oil and gas development, 2.3pc for Engro Corporation, 2.3pc for Fauji fertilizer and 2.8pc for Dawood Hercules.

June performance is not good

The market fell 7.96pc in June, falling 3.3pc in April-June and 2.6pc in January-June. However, we were able to generate a positive profit of 23.24pc compared to last year's 10pc.

According to a report by Topline Securities analyst Adnan Sami Sheikh, June trading volume declined to 277 million shares per month in 24pc, while trading volume declined from 34 trillion won to 12.8 trillion won due to fewer working days.

The market performance in June, which saw most of this year's sales, was the worst since March 2015 as the index crashed because of excessive negative news, targets and expectations.

Whatever goes up must come down.

By the end of May, the benchmark KSE-100 index continued to climb to record daily highs. On May 25, the index rose 11pc to reach 52.876, the highest level this year.

When the Pakistan Stock Market (PSX) was upgraded on June 1, investors were constantly buying six heavyweight shares declared as part of the MSCI Emerging Markets Index.

On May 31st, the day before the index rallied, everyone involved in the stock was expected to receive between $ 300 million and $ 450 million on May 31, but the final figure on June 1 was $ 82 million. Hope fell when we declared net outflow.

It has fueled the fire that started with a disappointing federal budget that imposed a higher tax on the PSX's core offer aside.

As a result, the Asian stock market with a 46 percent return in 2016 and the world's fifth-largest stock market have been modest at a negative rate of 2.6 percent in the first half of 2017. With the exception of the UAE, China, Qatar, and Russia, the PSX index underperformed most regional markets.

Foreign and local participants

Foreign investors kept net selling in the first half. They grew more than seven times over the same period last year, reducing their $ 333 million stake compared to $ 41 million sold.

Major overseas sales were concentrated in the cement company ($ 136m), followed by electricity ($ 43m) and bank ($ 39m). Among the participants, mutual funds bought $ 268 million in stocks and insurance companies net bought $ 12.8 billion. Individuals and banks were sold with stocks of $ 770 million and $ 730 million, respectively.


In addition to political uncertainties, Pakistan's external account situation is not too rosy. However, Topline Securities expects the KSE-100 index to reach 54,000 points by the end of December.

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