Stock Watch - Market posts slight gain after fatf outcome concern, stability likely.

Summary

Previous week it was IMF review which led market fall flat. This week the investors kept a close eye on the FATF meeting in Paris, which concluded Friday. Throughout the week, the concern for the meeting continued in the minds of investors and the market shed 232 points on Friday as outcome of the FATF meeting awaited keenly during the last day of the week.

The week also has a series of corporate results, which led to share movements. In Banks HBL profit jumps by 27 percent. It was higher than market expectation. Besides Engro profits jump by 27.12 percent, PSO profit soars 51 percent, Kapco second quarter profit higher by 87 percent in the same period last year.

The market on Friday closed with slight gain of 5.96 points at 40,249.22. The market volume declined from previous week by 36 percent to average of 107 million shares . The market capitalization declined by 33 billion to Rs.7.531 trillion. The foreigner continued seller by $8.58 million.

On Monday, the stock market closed about flat with a narrow gain of 33.67 points at 40,276.93. The volume declined to 100 million as FATF plenary meeting started in Paris.

The FATF concern remained on Tuesday besides investors were not inclined to take fresh position on macroeconomic concern. The market shed 101.58 points to close at 40,175.35. The volume declined to 92m.

There was a rally of 399-point on corporate results on Wednesday in which the Bank took the leading role HBL saw strong interest as its profit jumps by 27 percent .The index closed at 40,574.52.

It was a range-bound trading on Thursday and Index lost 92.87 points to close at 40,481.65. Foreign selling of $1.36m was mopped up by insurance companies that bought shares valued at $1.35m.

On the expected decision on Friday of FATF, the market shed 232.43 points to close at 40,249.22. Foreigners sold $1.60m, which was again mopped up by insurance companies.

Participants/Activity

On average shares of 332 companies were traded. Of these 1147 were gainers and 162 were losers and 23 remained unchanged.

Foreigners were net seller $8.58m during the week; companies were buyer by $1.99m, Banks were buyer $0.70m; Mutual fund net seller $1.22m and individuals net seller $3.13m.

Volume leaders during the week were: Unity Foods 65m; D. G. Khan Cement 35m...

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