Stock Watch - Stocks remains bearish as KSE-100 index falls 2.35% WoW.

Summary

Month January started on a positive note gaining 1,588 points in the first three days of the first week of the year 2020. But in the later days of the week the Index went down gradually and finally closed in the negative territory with 272.56 points on Friday.

The investors sentiment during the week remained under the influence of coronavirus spreading from China, which triggered panic a prices falling on commodities and oil. The political uncertainty created over the government's survival and change of Punjab CM, the Monetary Policy expectation and the government struggle to come out of FATF grey list review due next month.

During the week, the KSE-100 Index declined by1002.08 to close below 42,000 level at 41,630.94. The average volume almost remained same as previous week of 188m. The market capitalization went down by 108 billion to close at Rs.7.851 trillion. The foreigner were net seller with $8.01m.

On Monday, the trading started on a negative note as foreigners turned net seller of $0.23m. The volume declined from last Friday to 199m. However, high net worth individuals gave support and were buyer worth $3.06m. The Index shed 93.79 points to close at 42,539.23.

On Tuesday, the stock lost 240 points. Absence of any positive triggers, higher than expected inflation and the pressure of rollover week brought Index down by 240.04 to close at 42,299.19. The foreigner remained seller worth $3.87m.

On Wednesday, the impact of SBP's Monetary Policy announced on Tuesday could be seen. As policy rate remained same at 13.25 percent the Index shed 400.49 points to close at 41,898.70 points.

On Thursday, the stock closed flat increasing Index by 4.80 points to close at 41,903.50. The market recovered due to some positive factors like foreign inflows, rupee stability and investors speculation over Rs.150 billion target recovery in state-owned enterprises privatization.

On Friday, the investors decided not to take week-end risk and the market tumbled 272.57 to close at 41,630.93. Due to absence of market moving triggers, last day of the rollover week and continuous selling by foreigner worth $1.72m kept the market on downside in second half of the day.

Participants/Activity

On average shares of 351 companies were traded. Of these144 were gainers and 192 were losers and 15 remained unchanged.

Foreigners were net seller $8.01m during the week; companies were seller by $5.20m, Banks were seller $0.07m; Mutual fund net seller $2.26m and...