KARACHI: Pakistan Stock Exchange witnessed positive trend during the outgoing three-day week after long Eid holidays.
The investors celebrated the resumption of the much-awaited IMF program as Pakistan reached the staff level agreement for release of $1.17 billion.
The benchmark KSE-100 index surged by 730.90 points on week-on-week basis and crossed 42,000 psychological level to close at 42,074.91 points.
Trading activities also improved as average daily volumes on ready counter increased by 96.9 percent to 177.60 million shares during this week as compared to previous week’s average of 90.21 million shares while average daily traded value increased by 111.2 percent to Rs 6.43 billion during this week against previous week’s Rs 3.04 billion.
BRIndex100 gained 95.54 points during this week to close at 4,188.46 points with average daily turnover of 164.374 million shares.
BRIndex30 increased by 320.72 points on week-on-week basis to close at 15,378.84 points with average daily trading volumes of 103.742 million shares.
The foreign investors remained net buyers of shares worth $1.395million during this week. Total market capitalization increased by Rs 103 billion or 1.5 percent to Rs 7.044 trillion.
An analyst at JS Global Capital said that the Pakistan equities closed the 3-day week on a positive note at 42,075, reporting an increase of 1.8 percent on week-on-week basis.
Among key outperformers sectors during the week were OMC (up 5.0 percent), Engineering (up 4.1 percent) and Cement (up 3.0 percent). Investors celebrated the resumption of the much-awaited IMF program as Pakistan reached the staff level agreement for release of $1.17 billion. Moreover, the size of the program also increased by $1.0 billion to $7.0 billion, extending the program to June-2023, subject to approval from the Board. Along with this, international oil prices remained volatile, where Brent Crude touched a recent low of $94.78 per barrel (Sep contract) before closing the week at above $100 per barrel.
In order to pass on the impact of decline in international oil prices and provide relief, petrol and diesel prices were also reduced in the country. All these positive developments overshadowed the 125 bps increase in the country’s Policy Rate last week.
An analyst at Arif Habib Limited said that the three-day week commenced on a positive note given the Government reached a staff-level agreement with the IMF, which would enable the disbursement of the $1.2billion under the Extended Fund Facility subject to approval of Executive Board (IMF).
Alongside this, approval by the PM Shehbaz for the reduction in petroleum prices (reducing MS and HSD by Rs 18.50/litre and Rs 40.54/litre) was also welcomed by the market.
On the other hand, the Pak Rupee further depreciated after staging a briefing recovery post announcement of IMF deal (closing the week at Rs 210.95), leading to bearish momentum on the last trading day of the week.
Sector-wise positive contributions came from Commercial Banks (up 194points), Cement (up 99points), Technology & Communication (up 93points), Fertilizer (up 85points) and Oil & Gas Exploration Companies (up 82points). Whereas, sectors which contributed negatively were Automobile Assembler (down 22points) and Pharmaceuticals (down 9points).
Scrip-wise positive contributors were MEBL (up 84points), SYS (up 70points), PSO (up 53points), LUCK (up 45points) and PPL (up 39points). Meanwhile, scrip-wise negative contribution came from COLG (down 17points), ABOT (down 15points), MTL (down 10points), POL (down 10points) and EFUG (down 9points).
Foreign buying was witnessed this week, clocking in at $1.40million compared to a net buy of $1.63million last week. Major buying was witnessed in all other sectors ($0.43million) and banks ($0.36million). On the local front, selling was reported by Banks/DFIs ($1.43million) followed by Insurance Companies ($1.13million).
Copyright Business Recorder, 2022
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