KARACHI: In line with the rout in global equities markets, the Pakistan Stock Exchange saw massive sums wiped off share prices in the week ended on Friday as the KSE-100 index dived 1,387 points (3.6 per cent) to settle at 37,390 points.

It eroded almost all of the earlier week’s gains of 1,837 points (3.6pc); the highest weekly rise in three years that PSX had seen after the MSCI upgrade of Pakistan to emerging market status.

The blame for last week’s equity meltdown lay squarely on Britain’s vote to leave the European Union. It rocked world financial markets on Friday. The KSE-100 index also faltered 848 points (2.2pc) on the last day of the trading week.

Besides, one-third foreign holdings in PSX free-float, investors were concerned that Pakistan’s exports to the UK would suffer after Brexit. Analyst Faizan Ahmed at JS Global pointed out that the fallout of Brexit was greater in PSX sectors like autos (importers from Japan), textiles (exporters to Britain & EU) and oil (decline in oil prices) as they were expected to bear the brunt of the blow.

Average volume traded during the week fell by 15pc and the value of shares traded decreased by 26.6pc. According to KASB Securities, Pakistan Tobacco Company, National Refinery, Murree Brewery, Pak Services and Standard Chartered Bank were the major gainers while Bank Al-Falah Limited, MCB Bank Limited, Rafhan Maize, Adamjee Insurance, and Nishat Mills were the major losers during the week.

In contrast to the preceding week’s net inflow of $19.6m, foreigners were net sellers of $20.5m worth of shares in the week ended Friday. “Foreign selling was seen in chemicals and cement sectors amounting to $6.8m and $5.5m, respectively, whereas net foreign buying of $1.3m was witnessed in the banking sector”, dealers at Topline Securities said. Overall, tobacco and refinery sectors were among the gainers during the past week as they rose 8.1pc and 2.2pc respectively. Automobile assemblers, oil and gas exploration companies and textile composites were the biggest losers.

Analysts at AKD Securities identified leading gaining scripts during the week as MTL 2.30pc, FATIMA 1.99pc, HMB 1.67pc, FCCL 1.51pc and AGTL 0.16pc. Laggards of the week included: BAFL 10.49pc, MCB 9.89pc, AICL 8.35pc, NML 7.54pc and NCL 7.13pc.

Published in Dawn, June 26th, 2016