Stock Watch - Stocks rally extended to overcome political noise, gaining 4.4% wow.

Summary

Prime Minister Imran Khan's visit this week to China to meet President Xi Jinping and Premier Li Keqiang to discuss the progress of CPEC projects. China reiterated its support for Pakistan on the on-going Kashmir conflict. On domestic front JUI-F plans to march in Islamabad on possible support from other political parties. During the visit PM apprised the Chinese leadership of the government recent landmark decisions to speed-up implementation of ongoing CPEC projects as well as efforts to project CPEC as a High Quality Demonstration Projects of BRI. A number of agreements/MoUs were signed between the two prime ministers.

During the week KSE-100 Index gained 1442.37 point and crossed 34,000. The average volume increased to 234m and market capitalization gained Rs.217 billion to close at Rs.6,771 billion.

On Monday, the business leaders and investors sentiments were high after last week meeting with Army chief. The Index gained 603.50 points to close at 33,636.82.

After seven days of bullish trend in stock the investors went for profit taking on Tuesday. The Index lost 160.20 points to close at 33,476.62.

On Wednesday the market remained range bound and closed at 33,523.74 with gain of 47.12 points.

The bullish trend resumed again on Thursday and KSE-100 Index gained 503.96 to close at 34,475.69.

The last day of the week there was a rally of 504 points and Index finally closed at 34,475.69.

Participants/Activities

On average shares of 398 companies were traded. Of these 228 were gainers and 152 were losers and 18 remained unchanged.

Foreigners were net seller of $5.31m during the week; companies were buyer by $3.91m, Banks were seller $4.04m; Mutual fund net seller $1.36m and individuals net buyers $2.67m.

Volume leaders during the week were: Unity Foods Ltd 104m; Lottee Chemical 89m; Bank of Punjab 74m; K-Electric 43m; TRG Pak Ltd 35m; WTL 31m; Pak Intl Bulk 26m; Engro Polymer 19m and Pak Elektron 13m.

Triggers

* President Dr. Arif Alvi promulgated two ordinances to set up the China-Pakistan Economic Corridor Authority and grand tax concessions to the Gwadar Port and its free zone.

* Pakistan 's ranking on the World Economic Forum 's competitiveness index has dropped three ranks to 110 from 107 in 2018 below India 68th and Bangladesh 105th.

* The SBP Governor in his address to OICCI said...