Pakistan & Gulf Economist

World Stock Markets

Pakistan stocks index breaks four-session losing streak

The KSE-100 index ended its four-session losing streak on Friday and surged 486 points to end the week in the green. The day started on a positive note as the index climbed over 400 points in the initial hour, crossing the 42,000 barrier with ease. Investors’ sentiments improved as the day progressed with gains registered across all index-heavy sectors.

At close, the benchmark KSE 100-share Index recorded an increase of 485.82 points or 1.16 percent to settle at 42,446.62. Moreover, in the financials, mixed sentiments were seen where HBL (-0.14%) closed in the red, however MCB (+0.89%), and UBL (+2.36%) closed positive. BOP (+6.04%) announced 1H2018 consolidated EPS of Rs.1.46. Today’s major heavyweights namely, PPL (+0.55%), OGDC (+0.61%), ENGRO (+1.09%), MCB (+0.89%), UBL (+2.36%), LUCK (+2.17%) and FFC (+0.24%) cumulatively contributed +137 points.

Overall, trading volumes increased to 194.2 million shares compared with Thursday’s tally of 142.2 million. The value of shares traded during the day was Rs8.1 billion. Shares of 376 companies were traded. At the end of the day, 266 stocks closed higher, 91 declined while 19 remained unchanged. The Bank of Punjab was the volume leader with 39 million shares, gaining Rs0.68 to close at Rs11.94. It was followed by Worldcall Telecom with 8.4 million shares, gaining Rs0.09 to close at Rs2 and Unity Foods with 7.4 million shares, gaining Rs1.91 to close at Rs40.3.

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US stocks climb on upbeat trade news

US stocks closed higher on Friday, with the S&P 500 and the Dow Jones Industrial Average extending gains and the Nasdaq turning positive on reports of progress in tariff disputes between the United States and its trading partners China and Mexico.

Chinese and US negotiators are planning talks to resolve their trade row ahead of meetings in November, the Wall Street Journal reported on Friday. Additionally, Mexico’s economy minister, Ildefonso Guajardo, said he hopes to wrap up outstanding bilateral issues on the North American Free Trade Agreement (NAFTA) by the middle of next week.

Trade-vulnerable industrial stocks led advances by the S&P 500 and the Dow, with the S&P 500 industrial sector gaining 0.6 percent. The sector was led higher by a 2.3 percent rise in Caterpillar Inc shares.

For the week, the S&P and the Dow posted weekly gains, but the Nasdaq showed a loss for the same period.

The Dow Jones Industrial Average rose 110.59 points, or 0.43 percent, to 25,669.32, the S&P 500 gained 9.44 points, or 0.33 percent, to 2,850.13 and the Nasdaq Composite added 9.81 points, or 0.13 percent, to 7,816.33.

All 11 major sectors in the S&P 500 were in positive territory.

The S&P 500 posted 38 new 52-week highs and 3 new lows; the Nasdaq Composite recorded 83 new highs and 69 new lows. Volume on US exchanges was 6.06 billion shares, compared with the 6.53 billion average over the last 20 trading days.

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Tokyo shares close higher

Tokyo shares made moderate gains on Friday, encouraged by overnight gains on Wall Street as investors took heart from news that the US and China will resume trade talks.

The key Nikkei 225 index added 0.35 percent or 78.34 points to close at 22,270.38, while the broader Topix index firmed 0.62 percent or 10.38 points to 1,697.53.

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Hong Kong stocks end losing streak

Hong Kong stocks ended with gains on Friday after five straight days of losses, tracking rebounds by Wall Street and European markets over news of fresh US-China trade talks.

The Hang Seng Index added 0.42 percent, or 113.35 points, to close at 27,213.41. But the benchmark Shanghai Composite Index continued its week-long losing streak, shedding 1.34 percent, or 36.22 points, to close at 2,668.97. And the Shenzhen Composite Index, which tracks stocks on China’s second exchange, dropped 1.69 percent, or 24.74 points, to end at 1,442.38.

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India’s NSE index at record close

India’s NSE index marked its highest ever close on Friday, helped mainly by financial and consumer staple stocks and as Asian peers recovered on hopes of Sino-US trade talks next (this) week. Cement stocks such as Ramco Cements, Shree Cement , Orient Cement and India Cements surged after the government allowed the import of petcoke for use as feedstock in cement, lime kiln, calcium carbide and other industries. Cash-strapped Jet Airways rose nearly 3 percent after a report said the company was in talks to raise up to 20 billion rupees against its forward sales. The company early on Friday deferred its first-quarter results to Aug. 27.

The broader NSE index ended 0.75 percent higher at 11,470.75. It rose 0.4 percent over the week. The benchmark BSE index ended 0.75 percent higher at 37,947.88. It gained 0.2 percent over the week.

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Canadian stock market keeps rising

Canada’s main stock market kept going up Friday as materials stocks rebounded from heavy losses earlier this week.

The Toronto Stock Exchange’s benchmark Standard & Poor’s/TSX Composite Index rose 98.06 points, or 0.60 percent, to end Friday at 16,323.71 points. The Canadian dollar rose 0.42 cent to 0.76.45 US dollar. The energy group gallied 1.16 points, or 0.6 percent while the financial group climbed 1.74 points, or 0.56 percent.

The most heavily traded shares by volume were Aurora Cannabis Inc., Canopy Growth Corp and Bombardier Inc. Canopy Growth Corp jumped 8.6 percent to 44.18 Canadian dollars while Aurora Cannabis Inc. rose four percent to 6.50 Canadian dollars. Bombardier Inc. gained 1.31 percent to 4.64 Canadian dollars.

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Sri Lankan shares hit over 7-week closing low

Sri Lankan shares extended losses for a sixth straight session on Friday, marking their lowest close in more than seven weeks, as foreign investors trimmed equity exposure amid fears that the government may introduce new taxes on several sectors.

Foreign investors sold shares worth a net 229 million rupees ($1.43 million) on Friday, extending the foreign outflow to a net 839 million rupees in the last three sessions. They have sold a net 3.46 billion rupees worth of equities so far this year.

The Colombo stock index fell 0.53 percent to 6,051.10, its lowest close since July 4. It has declined about 5 percent so far this year. Turnover for the day stood at 569.4 million rupees on Friday, less than this year’s daily average of 831 million rupees. Shares in John Keells, which accounted for more than a third of the day’s turnover, fell 0.1 percent. Large-cap stock Ceylon Tobacco Company Plc fell 2.2 percent. The central bank left its key policy rates unchanged, as expected, on Aug. 3, citing its goals of stabilising inflation and fostering sustainable economic growth.

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