Daily trading volume one again plunges at Pakistan Stock Exchange

During the week ended 26th July 2019, the benchmark index of Pakistan Stock Exchange (PSX) remained under pressure and registered a decline of 356 points to close at 32,103 levels. The week started on a positive trajectory as first two sessions cumulatively added 257 points to index, on the back of trip of Prime Minister Imran Khan to the United States, but subsequently sentiments turned bearish on weak macro indicators. The key sectors adding to the erosion in the Index were Power & Distribution Companies followed by Food & Oil Marketing Companies. According to NCCPL data, foreigners remained net buyers with US$8.4 million, but Mutual Funds remained net seller with US$13.4 million. Average daily trading volume once again plunged to 75.3 million shares. Increased participation in PIB auction reduced attractiveness of the equities market. Top performers of the week included: INDU, POL, UBL, HBL and FFC, while FFBL, HASCOL, MLCF, PIOC and ASTL were the worst performer. The market is expected to remain volatile in coming days due to commencement of results season, while inflation number would determine the future interest rate trajectory. Investors are advised to take longer term view in evaluating investment opportunities, giving lesser weight to short-term performance, as market may rebound on improving economic indicators.

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