KARACHI: Pakistan Stock Exchange witnessed bearish trend during the outgoing week ended on February 17, 2023 due to selling pressure on investor concerns over prevailing economic and political situation in the country.
The benchmark KSE-100 index plunged by 623.17 points on week-on-week basis and closed at 41,118.61 points.
Trading activities also remained very low as average daily volumes on ready counter decreased by 45.8 percent during this week to 153.91 million shares as compared to previous week’s average of 284.07 million shares while average daily traded value on the ready counter declined by 45.3 percent to Rs 6.75 billion against previous week’s Rs 12.34 billion.
BRIndex100 lost 52.56 points during this week to close at 4,121.65 points with average daily turnover of 140.181 million shares.
BRIndex30 declined by 387.87 points on week-on-week basis to close at 14,732.70 points with average daily trading volume of 90.777 million shares.
Total market capitalization declined by Rs 130 billion during this week to Rs 6.429 trillion.
An analyst at AKD Securities said that the KSE-100 index closed the week at 41,119 points, lower by 623.2 points or 1.5 percent over the course of the week.
The lacklustre performance during the week was despite the Supplementary Finance Bill which was presented to introduce Rs 170 billion in additional taxes—in line with the IMF’s conditions under the 9th review. Furthermore, FX reserves inched up by $276 million to $3.2 billion during the week, with the import cover remaining below a month’s. As for the currency, the PkR gained 2.5 percent of its value against the greenback over the course of the week.
Sector-wise, the top performing sectors were leasing companies (up 20.6 percent), Leather and Tanneries (up 3.8 percent) and Sugar and Allied Industries (up 3.3 percent), while the least favourite sectors were textile weaving (down 8.9 percent), Tobacco (down 8.3 percent), Miscellaneous (down 5.2 percent) and Pharmaceuticals (down 5.0 percent).
Stock-wise, top performers were PGLC (up 51.4 percent), THALL (up 9.7 percent), FABL (up 7.0 percent), JVDC (up 6.4 percent) and GHGL (up 4.2 percent), while laggards were PAKT (down 9.6 percent), MUGHAL (down 8.4 percent), KTML (down 7.7 percent) and PSEL (down 7.5 percent. Flow wise, companies were the major buyers with net buy of $4.12 million, followed by Banks/ DFI (net buy of $2.3 million), while Mutual Funds were major sellers during the week, with a net sell of $6.11 million. In a turnabout from previous trend, market closed negative this week, losing a total of 623 points, an analyst at JS Global Capital said.
This was despite the government taking steps toward pending reforms like higher taxation measures and rationalization of energy tariffs for the completion of the IMF review. Talks over the 9th review have entered final stages and staff level meetings were held during the week.
Copyright Business Recorder, 2023
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