By Hamid Mahmood ISLAMABAD, Feb. 08 (INP-WealthPK): Last week (January 31 to February 4), the Pakistan Stock Exchange (PSX) benchmark index started on a bullish note, rising 296.7 points to its current position. The bullish trend was fuelled by investors' anticipation of the IMF (International Monetary Fund) executive board's acceptance of a $1 billion tranche under the Extended Fund Facility (EFF). Investors' confidence about upcoming solid corporate earnings accelerated the bullish trend even further. The market also welcomed $1 billion in revenue from the midweek offering of foreign Sukuk bonds. Oil prices, which are holding around a seven-year high, kept buyers interested in exploration and production (E&P) sector through the entire week. On the second final day of the week, however, bears were observed snapping the bourse's three-day winning run due to profit-taking. According to WealthPk research, the market ended the day at 45,909.65 points, up 831.74 points (1.845%) on a week-on-week basis. Over the week, the all-share index gained 630.41 points, the Karachi Stock Exchange (KSE-30) index gained 175.91 points, and the KSE Meezan Index (KMI-30 index) gained 1402.77 points, respectively.

Index	Week Start	Week-End	Change	% Δ
KSE 100 Index	45077.91	45,909.65	831.74	1.845116599
All Shares Index	30,802.68	31,433.09	630.41	2.046607633
KSE 30 Index	17,792.99	17,968.90	175.91	0.988647776
KMI 30 Index	73,156.98	74,559.75	1,402.77	1.917479371

Source: PSX/ WealthPK Research

On Monday last week, stocks surged as investors cheered reports that the government was considering a $3 billion loan from China, but the authorities subsequently disputed the report. Although activity remained sideways throughout the day, the index remained in the green zone, with the market seeing heavy volume in the third-tier equities. The benchmark KSE-100 index rose 296.77 points, or 0.66 percent, to 45,374.68 after trading as high as 45,462.62 points and as low as 45,077.91 points. Stocks rose for a second day on Tuesday, as investors banked on a renewal of the IMF loan program, despite some troubling inflation figures. The KSE-100 index gained 299.82 points or 0.66% to end at 45,674.50 points after touching a high of 45,753.53 and a low of 45,372.27 points. Stocks added to their gains on Wednesday, extending the surge to a third day on speculation that the IMF $6 billion loan will not meet any roadblocks. During the day's trading, the KSE-100 index gained 444.65 points, or 0.97%, to end at 46,119.15 points, with highs and lows of 46,138.61 and 45,674.50 points. Stocks ended a three-day rally on Thursday as investors took gains after the IMF approved a key loan, removing the threat of lingering ambiguity. The KSE-100 index fell 256.22 points, or 0.56%, to close at 45,862.93 points, with the day's high and low being 46,387.64 and 45,820.43 points, respectively. Stocks were flat on Friday due to weekend profit-taking, but overall sentiment remained strong amid expectations of an economic rebound following the IMF loan approval. During the trading, the KSE-100 index gained 46.72 points, or 0.10%, to finish at 45,909.65 points, after reaching a top of 46,132.29 and a low of 45,814.64 points.

Source: PSX/ WealthPK Research

Last week, overall Foreign Investors Portfolio Investment (FIPI) sold their shares and made a profit of up to $4.42 million. Insurance companies sold their shares and earned $4.01 million which is the highest selling of the week followed by foreign corporates with $2.86 million shares and overseas Pakistanis with $1.51 million shares. Other organisations purchased $3.91million shares, the highest buying of the week, followed by mutual funds, which purchased up to $2.97 million. Banks purchased up to $2.11 million worth of shares. Prime Minister Imran Khan's visit to Beijing and a number of positive announcements after the visit are expected to keep positive sentiment in the stock market. Furthermore, the positive trend in corporate results will continue in the current week, with investors hoping for robust profits growth and excellent dividend distributions, which will keep the market in the green zone. The favoured stocks for the current week are from banking sectors (United Bank, Habib Bank, Meezan Bank, Muslim Commercial Bank, and Faysal Bank) petroleum (Pakistan State Oil, Oil & Gas Development Company, Pakistan Petroleum, Mari Gas), automobile (Indus Motor) and cement sector (Fauji Cement, Lucky Cement).