Stock Watch - KSE-100 index springs back 2.7% wow on positive macros and better corporate results.

Summary

Pakistan had presented the case on October 13-14, last week and this week plenary meeting of FATF (Financial Action Task Force) took place from October 21-23 to decide Pakistan's status on Friday around 7 pm PST. 'Hopefully Pakistan would remain on grey list' disclosed a senior official of the Finance Ministry. As such most of the uncertainty in the market regarding FATF status died down but still market has to wait for the decision at the end of the trading time on Friday.

The bullish trend in the market this week was on better corporate results, consistent improvement of rupee against the dollar; C/A surplus moderated to $73m in September; sizeable growth of 68 percent in foreign direct investment month-on-month in September. The market also discounted the political noise as something representing more of sound and fury with no negative outcome for the government.

During the week, KSE-100 index gained back 1102 points and crossed 41,000 level to close on Friday at 41,266. The market participants improved by 57 percent to average volume at 466m. The market capitalization increased by Rs.159 billion to close at Rs.7.647 trillion.

On Monday, there was bullish trend. At the end of the day Index was up by 176.15 to close at 40,340.17. Fertilizer off-take numbers helped the sector to take lead among gaining sector.

Stocks rallied 616 points as positive corporate results unveiled by banks, oil and gas, fertilizers and steel companies on Tuesday. KSE-100 Index gained 616.41 points to close at 40,956.56. The volume jumped to 493 million.

On Wednesday, stocks gained 579.34 points and broke 40,000 level as KSE-100 Index closed at 41,535.92. The volume also jumped further to 661 million.

There was some corrective mode on Thursday as the Index moved down by 336.90 points after three-day rally. The KSE-100 Index closed at 41,199.02. The volume declined to 500m.

There was choppy trading on Friday as investors waited for the FATF news. The volume further declined to 353 million and KSE-100 Index was range bound as it increased by 66.98 points to close at 41,266.

Participants/Activity

On average shares of 408 companies were traded. Of these 233 were gainers and 158 were losers and 17 remained unchanged.

Foreigners were net seller $6.87m...