Bulls dominated the stock market for the second successive week as the KSE-100 index finished the first week of 2020 with a gain of 1,475 points or 3.61% to end at 42,323 points.
The euphoric sentiment in the outgoing week propelled the index to trade at a 16-month high amid improvement on the political and economic front. However, regional tensions spiked towards the end of the week roiled stock markets round the world, the impact of which was also felt by the
The week began with the KSE-100 index inching slightly upward as investors remained concerned on the NAB (Amendment) Ordinance 2019 despite the government providing businesses with assurances of support. Unfortunately, the declarations failed to prevent a downturn as the last session of 2019 saw the index dip due to absence of positive triggers to set a direction.
In a dramatic turnaround, the following two sessions witnessed a phenomenal rally as the investors welcomed the new year in high spirits. The upbeat mood pushed the index higher as it recorded a gain of 1,746 points in the two-day rally as fresh allocations were made and a general aura of positivity prevailed at the bourse. The KSE-100 index closed 2019 as one of the best-performing indices in the region with a 10% return. This news particularly bolstered investor confidence and acted as a catalyst for the surge at the beginning of 2020.
On the other hand, the
The inflation reading for
The bourse entered the negative territory once again in the last trading session due to a sudden jump in regional tensions. A US drone strike targeted and killed Iranian Military Commander
Moving forward, the research houses expect the market to trade in the positive zone next week, however, they forecast oil scrips to attract the limelight following renewed tension in the
Optimised reflected in all aspects of the market as average traded volume increased 23% to 281 million, while average value traded rose 29% to
In terms of sectors, positive contributions was led by commercial banks (261 points), fertiliser (218 points), oil and gas exploration companies (208 points), power generation (184 points) and cement (171 points).
Scrip-wise, positive contributions were led by
Foreign selling continued this week clocking-in
Among major news of the week was;
© Pakistan Press International, source