KARACHI: Pakistan Stock Exchange remained highly volatile throughout the outgoing week ended on August 02, 2024 due to selling pressure on investor concerns over political noise in the country.
The benchmark KSE-100 index, after moving in both directions, closed in positive at 78,225.98 points, slightly up by 196.47 points on week-on-week basis.
Average daily trading volumes on ready counter increased by 6.2 percent to 357.85 million shares during this week as compared to previous week’s average of 336.89 million shares while average daily traded value on the ready counter increased by 8.7 percent to Rs 17.00 billion during this week against previous week’s Rs 15.65 billion.
BRIndex100 gained 82.48 points during this week to close at 8,315.84 points with average daily turnover of 286.854 million shares.
BRIndex30 inched up by 63.57 points on week-on-week basis to close at 25,898.21 points with average daily trading volumes of 186.010 million shares.
The foreign investors remained net sellers of shares worth $2.225 million during this week. Total market capitalization declined by Rs 15 billion during this week to Rs 10.373 trillion.
An analyst at JS Global Capital said that the KSE-100 index remained volatile throughout the week owing to selling pressure over political noise during the period.
During the week, Fitch raised Pakistan’s long-term foreign currency issuer default rating (IDR) to ‘CCC+’ from ‘CCC’ earlier while S&P maintained Pakistan’s rating at ‘CCC+’ for long-term sovereign credit rating and ‘C’ short-term rating.
Strong second quarter CY24 earnings/dividends announcement brought stock-specific activity in UBL and FFC.
An analyst at Arif Habib Limited said that the week commenced on a positive note with the Monetary Policy Committee (MPC) meeting on Monday. The government announced a policy rate cut of 100bps, bringing the interest rate down to 19.5 percent. In a further boost to market sentiment, Fitch Ratings upgraded Pakistan’s credit rating from CCC to CCC+ on the back of an improved external funding outlook.
Sector-wise positive contributions came from Fertilizer (up 417points), Refinery (up 68points), Power (up 63points),E&P’s (up 58points) and Pharmaceuticals (up 36points). Meanwhile, the sectors that mainly contributed negatively were Cements (down 207points), Banks (down 135points), Technology (down 66points), OMC’s (down 26points) and Textile (down 21 points).
Scrip-wise positive contributors were FFC (up 479 points), POL (up 70 points), MEBL (up 49 points), ATRL (up 34 points), and SEARL (up 31 points). Meanwhile, scrip-wise negative contributions came from BAFL (down 104 points), DAWH (down 72 points), SYS (down 57 points), KOHC (down 51 points), and EFERT (down 43 points).
Foreigner selling was observed during this week, clocking in at $2.2 million compared to a net buy of $4.6 million last week. Major selling was witnessed in foods & personal care ($1.9 million) and fertilizer ($0.6 million). On the local front, buying was reported by Insurance ($1.8 million) followed by individuals ($1.5 million).
Copyright Business Recorder, 2024
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