Stock Watch - PM'S US visit euphoria subside over imf reforms and political concern as index down 1% wow.

Summary

The three-day visit of Prime Minister Imran Khan to the United States starting last Sunday and concluded on early morning hours of Thursday after premier Imran Khan landed in Islamabad the opposition parties start preparing to launch Protest Day on completion of one year PTI government on July 25. The stock index, which is sensitive to political and economic news, had a topsy-turvy performance during the week due to expected gains of the visit while investors were concerned over the implementation of IMF agenda urging Pakistan to mobilize domestic tax reforms to ensure funds for social and development programs and to overcome debt problems. The positive aspect of the visit included coalition fund acknowledgement, possibility of dialogue on Kashmir dispute with India with US acting as mediator. Overall the ambiguity in US Pakistan relationship was 'reset' with clear direction as how the relationship between the two countries get going in future over Taliban/Afghanistan issue and possibility of 'trade' with US

to progress. US is one of the biggest trade partners of Pakistan.

The stock market, which has declined 1214 points last week started incorporating the positive impact of the visit last Friday and was bullish till Tuesday this week. On political concern of strikes and Senate Chairman removal move with negative corporate results pouring in the market index turned negative shedding 356 points to close on Friday at lowest level of 32,103.27. The average volume declined to 75 million while market capitalization was Rs.6,165; recording a loss of Rs.110 billion.

The stock market begins trading on Monday which closed on positive note on preceding Friday remained positive ahead of Trump-Imran meeting on Monday. The stock gained 125.78 points while volume remained thin with only 45m. The index closed at 32,584.55.

The impact of US President carried over on Tuesday and KSE-100 index gained 131.33 points to close at 32,715.88.

On Wednesday, the investors interest shifted to results on corporate sector where the sentiments remained low. Index snaps three-day rally with decline in index by 314.48 points to close at 32,401.40.

On Thursday, there was mixed performance and in the end the value hunters help index close in green by gaining 45 points to 32,446.40.

On last day of the week, Friday, the investors decided to reduce their positions as the...