KARACHI: Bears were in complete command of the stock market for all of the outgoing week, where the share prices continued to tumble for eight sessions in a row (including the last two sessions’ of the week ago).

In all, the KSE-100 index plunged 897 points (2.6 per cent) week-on-week (WoW) and closed on last trading day of the week (Friday) below the support level of 33,000 at 32,960.

“It has left the returns provided by the KSE in 2015 at just 2.6 per cent,” lamented a stock investor. But on the regional front, Dubai market did even worse, falling by 15.10pc. Russian stocks were lead gainers of 28pc year to-date.

Stock brokerage firms came up with their assessment of the market situation. Arif Habib Limited stated that the index underwent a correction following foreign selling, amid the imminent US Fed policy rate decision.

While restricted participation on the local front provided no further support to average daily volumes. Average daily volumes declined by 18pc to 143.3 million shares while traded value increased by 1pc to Rs6.6bn.

”Foreign selling, futures roll-over and lack of trigger in the market pulled down the local bourse,” said dealers at brokerage Topline Securities. Foreigners were net sellers of $13.1m worth of stocks, taking month-to-date selling to $44.9m. Major outflow was seen in banking and chemical sectors with net selling of $6m and $5.7m, respectively.

The KASB Securities observed that Associated Services Limited, Mari Gas, Sui Southern Gas, Murree Brewery and Shifa Int Hospital were the major gainers.

AKD Securities wrote in its weekly report: “Amid continued tension on the political front and absence of triggers, the KSE-100 index slumped.

Foreigners remained net sellers with outflows for the week at $13.1m compared to $15.9m in the previous week.

Regarding the outlook, Arif Habib Limited asserted: “Our long-term outlook for the market is positive as overall macroeconomic indicators continue to improve, opening up enticing valuations. The KSE-100 is currently trading at forward (2016) price-to-earnings multiple of 8.7 times against Asia Pacific regional average of 13.1 times (34pc discount), while offering 6.2pc dividend yield versus 2.7pc offered by the region (57pc discount).”

Published in Dawn, November 29th, 2015