In an outgoing week, trading commenced on a negative note partly carried from the previous week as investors were doubtful about the success of prime minister s visit to China.
Another round of negotiations between Pakistani and Chinese, which did not yield any tangible positive outcome yet forced the index to slide.
In addition to this, MSCI reduced Pakistan s weight to 0.046% after down grading Lucky Cement and UBL from main index to small index and deleted Honda Car and Maple Leaf Cement from small index.
However, the index rebound post MSCI announcement on last two trading days due to domestic financial institutions and high net worth individuals showing interest which pushed the index upwards.
The benchmark KSE-100 rose by 272 points or 0.66 percent to close at 41,661 points.
During the week, foreigners were net sellers amounting to $24.1 million versus $9.4 million in the previous week, this is their 28th consecutive-week of foreign selling. While on local front, Mutual Funds and individuals were net buyers of $9.2 million.
Top five best performing sectors during the week were commercial banks up by 193 points amid rate hike expected by 100 basis points in upcoming monetary policy, cements 94 points due to declining international coal prices by 3 percent and chemical 42 points given healthy margins.
While, sectors that contributed negatively to the index were oil and gas exploration and production drop by 78 points due to slump in international oil prices by 9 percent, technology and communication 32 points, and food and personal care 16 m points.
"We expect the market to remain range bound given lack of positive triggers ahead. Unfavorable economic conditions owing to higher current account deficit, depleting foreign exchange reserves and expectation of another rate hike of 100 basis points in the upcoming monetary policy are also likely to keep investors cautious", an analyst from Arif Habib Securities said.
However, any positive announcement from prime minister s visit to Malaysia (which is expected on 20th Nov) could provide some confidence to the investor sentiment.
