LAHORE - General election 2018 triggered bullish sentiments in KSE-100 index as it inched up by 3.8 percent WoW to close at 42,786 points.

The week also witnessed increase in volumes where average daily turnover touched 235million shares, marking a change of +7 percent WoW, while value traded jumped by 6 percent WoW to $70million.

Despite successful conduct of general elections, foreign investors continued their selling spree with another net sell of $0.3million recorded during the week. However, overall selling remained lower than last week where outflows of $21million were recorded.

Selling was witnessed in the heavy-weight sectors, remaining tilted towards the exploration and production (E&P) companies and banking sector. On sector-wise front, increase in steel prices towards the end of last week continued its positive spell where the engineering sector ended 11 percent WoW higher.

Apart from that, other key performers contributing towards index performance during the week were (1) cements (+9.1 percent WoW), (2) pharmaceuticals (+6.9 percent WoW), (3) fertilizers (+3.7 percent WoW), (4) Oil Marketing Companies (+4.7 percent WoW) and (5) refineries (+2.2 percent WoW).

Experts said that during the week, Pakistan equity markets rejoiced as political uncertainty subsided post 2018 elections with no chance of a 'hung parliament', leading to improved market sentiment. The market rallied 1,564 points during the week, up by 3.8 percent wow, most in 17 weeks.

Banks remained the top performing sector for the second consecutive week, contributing 368 points to the index gain, as market continues to anticipate earning accretion from further monetary tightening.

Simultaneously, better industry outlook and cheap valuations in fertilizer sector and cement sector respectively, kept market participants interested, with the two sectors contributing 506 points to the market.

During the week, foreigners remained net sellers to the tune of $0.4million as against net selling of $22.1million seen during same period last week. On the local front, individuals were net buyers amounting to $19million while mutual funds were net sellers amounting to $18.4million.

As per notice to the PSX, Jehangir Siddiqui & sons has acquired 7,549,000 shares of Jehangir Siddiqui & Co. taking total shareholding to 114,923,300 ordinary shares.

Fauji Food (FFL) announced its earnings for the 2Q2018, wherein LPS clocked in at Rs1.62 compared to LPS of Rs3.99 in the same quarter last year. Similarly, for the 1H2018 LPS clocked in at Rs2.79 compared to Rs6.28 in the same period last year. The decline in loss is attributable to better gross margins.

Wyeth Pakistan (WYETH) reported EPS of Rs1.91 for 2QFY18, compared to Rs4.38 in the same period last year. The decline in earnings was primarily due to ~3x higher tax in the current quarter. For the 1H2018, the company reported LPS of Rs14.25 compared to EPS of Rs14.11 in the same period last year.

During the week, the country's total liquid foreign exchange reserves increased by $46million during the last week. According to State Bank of Pakistan's weekly report, foreign exchange reserves held by the country stood at $15.728billion as on July 20, 2018 up from $15.682billion as on July 13, 2018.