Jul 052017

The Pakistan Stock Exchange (PSX) on Wednesday adopted what many called an unexpected trajectory, as the benchmark KSE-100 index climbed 962 points in intraday trading despite the fact that the premier's daughter was being questioned by a joint investigation team (JIT) probing the first family.

The PSX had only two days earlier experienced a bloodbath, with the benchmark KSE-100 Index shedding 1,900 points on reports that the Supreme Court-appointed JIT's proceedings were not going in favour of the first family.

The JIT has to submit its findings before the apex court on July 10, which will then decide if the prime minister can be sent packing for misleading the nation on his personal wealth.

Trading commenced Wednesday on a negative note, with the benchmark shedding almost 242 points to touch 45,152.63 points as the day's low within the first few minutes. However, it rebounded shortly after and continued upward till it touched 46,356.78 points — the day's high.

The index later experienced some selling pressure and was sailing around 45,961 points at the time this report was compiled.

Trading activity was led by the engineering sector, with 19.3 million shares traded till the filing of this report.

Senior analyst and head of research at Elixir Securities Pakistan, Hamad Aslam told Dawn.com that the rally was driven mainly by those sectors affected by a depreciation in the rupee.

He informed that the rupee's value against the dollar had fallen by almost Rs3, which resulted in activity in the oil and gas, textile and other relevant sectors. He added that the rally in these sectors also spilled over and buttressed overall sentiment in the capital market.

Talking about the political scenario and its impacts on the capital market, he said that "hot money" or individual investors were still preferring to remain on the sidelines. However, he added, that those investing in mutual funds were still buying in selected chips.

Another analyst, Ahsan Mehanti, said that sentiments had improved on the back of increased oil prices, as crude touched $47 in the international market. Besides this, he added that recently announced inflation figures (3.9pc) as well as an improved political environment catalysed the upward movement at the bourse.

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