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KARACHI: Pakistan Stock Exchange (PSX) witnessed bearish trend during the outgoing week ended on August 27, due to selling by both, local and foreign investors.

BRIndex100 lost 90.5 points on week-on-week basis to close at 5,101.25 points. Average daily trading volumes stood at 321.820 million shares.

BRIndex30 plunged by 1132.98 points during this week to close at 24,838.59 points with average daily turnover of 200.718 million shares.

KSE-100 index declined by 463.29 points on week-on-week basis and closed at 47,136.53 points. Trading activities however improved as average daily volumes on ready counter increased by 44.6 percent to 384.09 million shares as compared to previous week's average of 265.67 million shares. Average daily traded value on ready counter increased by 12.6 percent and stood at Rs 13.02 billion.

The foreign investors also remained on the selling side and withdrew $4.378 million from Pakistan capital market during this week. Total market capitalization declined by Rs 60 billion to Rs 8.250 trillion.

An analyst at AKD Securities said that the KSE-100 remained under pressure during the week, apart from Monday, where the index crossed the much anticipated barrier of 48,000 points to close at 48,112 points, up 512 points on day-on-day basis but the weak sentiment of the market coupled with incessant PkR/USD depreciation (up 0.9 percent on WoW), geopolitical tensions in the region and uncertainty over talks with IMF continued to derail investor confidence during the rest of the week.

The index, therefore, could not sustain the massive selling occurred during week and cumulatively loss 463 points, down 0.97 percent on WoW to close at 47,137 points.

Despite receiving $2.7 billion inflow under IMF's SDR allocation (conditional, to be directed to Covid vaccine procurement), the surging import bill payments due to constant currency deprecation kept the market sentiment negative.

Top performers of the market included PSEL (up 14.6 percent), GSKCH (up 10.9 percent), SYS (up 10.4 percent), MEBL (up 8.5 percent) and ARPL (up 8.2 percent). Meanwhile laggards included JLICL (down 14.7 percent), SRVI (down 13.4 percent), GADT (down 11.1 percent), ANL (down 10.1 percent) and HGFA (down 7.8 percent).

Top volume leaders included WTL (144.3 million shares), GGL (103.6 million shares), HUMNL (85 million shares), ANL (80.3 million shares) and BOP (75.8 million shares).

Flow wise, other organization remained the major buyers with (net buy of $3.49 million) followed by Mutual Funds (net buy of $2.27 million) while Insurance Companies stood on the other side with (net sell of $2.38 million) followed by Banks and DFI (net sell of $1.52 million).

An analyst at JS Global Capital said that the KSE-100 Index closed on a negative note this week, losing 463 points over Covid concerns, regional politics' influence and lack of positive triggers.

Foreigners turned out as net sellers of $4.378 million during the week with a significant selling seen in the Cement sector.

Copyright Business Recorder, 2021

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