KARACHI: Pakistan Stock Exchange remained under pressure during the outgoing week ended on February 24, 2023 due to selling on investor concerns over prevailing economic and political situation in the country.
The benchmark KSE-100 index declined by 410.85 points on week-on-week basis and closed below 41,000 psychological level at 40,707.76 points.
Trading activities also remained low as average daily volumes on ready counter decreased by 10.4 percent during this week to 137.89 million shares as compared to previous week’s average of 153.91 million shares while average daily traded value on ready counter declined by 22.3 percent to Rs 5.24 billion against previous week’s Rs 6.75 billion.
BRIndex100 lost 70.17 points during this week to close at 4,051.48 points with average daily turnover of 125.802 million shares.
BRIndex30 decreased by 428.32 points during this week to close at 14,304.38 points with average daily trading volumes of 92.816 million shares.
The foreign investors; however, remained net buyers of shares worth $746,071. Total market capitalization declined by Rs 109 billion during this week to Rs 6.320 trillion.
An analyst at AKD Securities said that the market witnessed an overall volatile session with news flows regarding the IMF deal and approval of Financial Supplementary Bill for additional taxes of Rs 170 billion hold up the investor’s confidence. Further agitation amongst the participants increased once T-bill cut-offs in the latest government auction went upto 19.95 percent, adding further fuel to the fire regarding interest rate hikes.
Sector-wise, Miscellaneous, Cement and Vanaspati & Allied Industries were amongst the top performers, up 6.7 percent/3.1 percent/3.0 percent respectively. On the other hand, Leasing Companies, Close-End Mutual Fund and Oil & Gas Exploration Companies were amongst the worst performers with a decline of 12.2 percent/10.9 percent/5.9 percent.
Flow wise, major net selling was recorded by Individuals with a net sell of $4.56 million. On the other hand, Companies absorbed most of the selling with a net buy of $5.91 million.
Company-wise, top performers during the week were PSEL (up 12.8 percent), MLCF (up 11.9 percent), KTML (up 11.5 percent), KOHC (up 10.3 percent) and MUGHAL (up 6.6 percent), while top laggards were, PGLC (down 27.8 percent), HGFA (down 13.2 percent), PPL (down 11.4 percent), SHFA (down 10.2 percent) and SHEL (down 9.9 percent).
An analyst at JS Global Capital said that the KSE-100 remained in the negative territory (down 1.0 percent WoW) over expected monetary tightening coupled with rising political temperature as elections in KPK and Punjab hang in the balance. The GoP on the other hand inched closer to reaching an agreement with the IMF with the approval of Mini Budget in the National Assembly this week. Sector-wise, Cement sector stood out as a top performer (up 3.1 percent) while E&P (down 5.9 percent), Autos (down 4.8 percent) and Banking (down 2.5 percent) sectors were underperformers.
Copyright Business Recorder, 2023
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