KARACHI: Despite revival of IMF programme and release of first tranche of $1.6 billion, the Pakistan Stock Exchange witnessed volatile activity during the outgoing week ended on September 02, 2022 with low trading activities.
Although, the market witnessed a short lived rally during the week in response to revival of IMF programme however increased political noise and economic uncertainty over news regarding damages due to the floods led to profit taking this week.
The benchmark KSE-100 index declined by 282.40 points on week-on-week basis and closed at 42,309.11 points. Trading activities remained low as average daily volumes on ready counter decreased by 15.4 percent to 211.30 million shares as compared to previous week’s average of 249.89 million shares while average daily traded value on ready counter declined by 15.0 percent to Rs 6.89 billion against previous week’s Rs 8.11 billion.
BRIndex100 lost 25.41 points during this week to close at 4,240.93 points with average daily turnover of 187.766 million shares.
BRIndex30 decreased by 103.90 points on week-on-week basis to close at 15,425.90 points with average daily trading volumes of 132.549 million shares.
Total market capitalization declined by Rs 87 billion during this week to Rs 7.023 trillion. An analyst at AKD Securities said that the bourse witnessed a volatile week as Pakistan continues its relentless battle against deadly floods triggered by the heaviest monsoon rains in a decade which have killed almost 1,200 people and submerged one-third of the country, where several organizations announced aid globally.
Although, there was respite due to news of the IMF receipt confirmation and crude oil falling by $6/bbl on the back Chinese economic weakness, hawkish FED stance and re-emergence of Iranian supply.
Sector-wise, amongst main boards, leather & tanneries and cements companies were amongst the top performers, up 8.3 percent and 3.9 percent on WoW respectively. On the other hand, Tobacco and Transport was amongst the worst performers with declines of 7.1 percent and 6.6 percent on WoW.
Stock wise, top performers include SRVI (up 18.3 percent), KOHC (up 14.6 percent), FABL (up 12.7 percent), CEPB (up 8.7 percent) and JVDC (up 7.7 percent), while top laggards were POML (down 18.1 percent), NML (down 8.2 percent), PAKT (down 7.1 percent), PSEL (down 7 percent) and DAWH (down 6.5 percent).
An analyst at JS Global Capital said that increased political noise and economic uncertainty over news regarding damages due to the floods led to profit taking this week. Market however witnessed a short lived rally during the week in response to revival of the stalled IMF programme under which Pakistan received $1.16billion.
Bond yields on Pakistan’s dollar denominated instruments eased in response to the IMF approval. Pak Rupee also extended gains during the week and appreciated 0.8 percent on WoW closing at a PKR/US$ rate of 218.98 in the interbank on Friday.
Copyright Business Recorder, 2022
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