KARACHI: Pakistan Stock Exchange remained under pressure during the outgoing week ended on December 09, 2022 due to selling on investor concerns over prevailing economic and political situation in the country.
The benchmark KSE-100 index plunged by 451.82 points on week-on-week basis and closed at 41,698.28 points.
Average daily volumes on ready counter increased by 11.1 percent to 179.73 million shares as compared to previous week’s average of 161.75 million shares while average daily traded value on ready counter declined by 22.0 percent to Rs 4.13 billion against previous week’s Rs 5.29 billion. BRIndex100 lost 61.39 points during this week to close at 4,163.91 points with average daily turnover of 137.554 million shares.
BRIndex30 declined by 170.68 points on week-on-week basis to close at 15,347.23 points with average daily trading volumes of 70.022 million shares.
The foreign investors remained on the selling side and withdrew $6.263 million from the local equity market during this week. Total market capitalization declined by Rs 87 billion during this week to Rs 6.640 trillion.
“Economic uncertainty regarding Pakistan’s ability to make good on its debt payments kept the market under pressure, with the KSE-100 index dropping by 1.07 percent on WoW to end the week at 41,698 pts,” an analyst at AKD Securities said.
Furthermore, SBP confirmed the payment of $1.08 billion of International Sukuk last week. This, in turn, brought our FX reserves held by the SBP down to $6.7 billion on December 02, 2022, down by $784 million compared to the earlier week. Additionally, Saudi Arabia has provided a much-needed breathing space to Pakistan by announcing the rollover of $3.0 billion which would help meet external sector challenges and achieve economic growth. Sector-wise, the top performing sectors were miscellaneous (up 10.7 percent) and closed end mutual funds (up 4.2 percent), while the least favourite sectors were pharmaceuticals (down 5.9 percent) and jute (down 4.4 percent).
Stock-wise, top performers were PSEL (up 30.8 percent), PGLC (up 7.3 percent), MUREB (up 5.0 percent), ILP (up 3.5 percent) and BAHL (up 3.0 percent), while laggards were GLAXO (down 11.2 percent), PIOC (down 8.0 percent), CHCC (down 7.9 percent), PSMC (down 7.7 percent) and SEARL (down 7.2 percent).
Flow wise, Individuals were major buyers with net buy of $8.82million, followed by insurance companies with net buy of $1.26 million, while foreign investors were major sellers during the week, with a net sell of $6.26million. Mutual funds continued to be a seller, with a net sell of $3.71million during the week.
An analyst at JS Global Capital said that the KSE-100 opened the week on a pessimistic note owing to political uncertainty and delay in talks with IMF.
The market witnessed a partial recovery during the mid of the week and closed at 41,698 points, limiting losses to 1.1 percent on WoW.
Sector wise, pharma (down (5.9 percent), cements (down 2.9 percent) and oil & gas marketing (down 2.3 percent) remained key underperformers during the week.
Copyright Business Recorder, 2022
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