TERROR ATTACKS DEPRESS MARKET SENTIMENTS; BULLS LIKELY BACK IN THE RING
KSE-100 Index again dropped by 212 points to close in red at 49,375 levels amid a thin market volume of 373 million in the last trading session of the week on Friday.
According to market analysts the depressed market activity is attributed to, the two major terrorist attacks first in Lahore and later at the Shrine of Hazrat Lal Shahbaz Qalander at Sehwan Sharif in Sindh where almost 100 visitors lost their lives and hundreds were injured as the major reason affecting the market sentiments. However, market analysts said that it is a temporary phase as the market appetite may restore the bullish movement when the market reopens next week on Monday.
Overall the Index remained volatile during the week, breached the 50,000 level during intraday but failed to closed above 50,000 as the negative news flow and uncertainty kept the upside in check. Index closed the week at 49,376 points, marginally down by 1%. Foreign Institutions Portfolio Investment (FIPI) registered net inflow of US$4.2mn. Average volume traded decreased by 14.5% WoW while average value traded.
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Meanwhile the international oil prices fell in the previous session after EIA reported a large build of 9.5mnbbl in US crude oil inventories for the week, compared with the expectations for a rise of 3.7mnbbl. However, experts suggest the prices to remain range-bound in a short-term because of the conflicting price drivers of OPEC’s cuts and rising US inventories and production decreased by 5.2% WoW.
Shell Pakistan, Jubilee General Ins. Co Ltd, Jubilee Life Insurance Co Ltd, Sui Northern Gas Ltd and Fauji Fertilizer Bin Qasim were the major gainers while International Steel Limited, Ferozsons Laboratories, Askari Commercial Bank, TRG Pakistan, and Allied Rental Modaraba were the major losers in the benchmark KSE-100 this week.