KARACHI: Pakistan Stock Exchange witnessed bullish trend and hit historic all time highest ever levels during the outgoing week ended on September 20, 2024 on the back of investor interest on improving macroeconomic indicators and expectations regarding approval of IMF new program this month.
The benchmark KSE-100 index surged by 2,741.39 points on week-on-week basis and closed at highest ever level of 82,074.45 points.
Trading activities however remained low as average daily volumes on the ready counter declined by 22.6 percent to 469.45 million shares during this week as compared to previous week’s average of 606.74 million shares however average daily traded value on the ready counter increased by 20.7 percent to Rs 18.40 billion during this week against previous week’s Rs 15.24 billion.
BRIndex100 increased by 214.34 points during this week to close at 8,615.32 points with average daily turnover of 347.363 million shares.
BRIndex30 however declined by 289.67 points on week-on-week basis to close at 26,899.87 points with average daily trading volumes of 211.632 million shares.
The foreign investors however remained on the selling side and withdrew $23.196 million from the local equity market during this week. Total market capitalization increased by Rs 181 billion to Rs 10.723 trillion.
An analyst at JS Global Capital said that the KSE-100 index closed at an all-time high level of 82,074 on the last trading day of this week, up 3.5 percent on WoW.
Despite foreign investors being net sellers, with a net outflow of $23million (FIPI) during the week mainly owing to FTSE rebalancing, positive sentiment from domestic players, fuelled by encouraging news on the economic front including the upcoming IMF meeting, offset the impact.
Reports of economic stabilization and expectations of interest rate cuts following the government’s rejection of Market Treasury Bill bids for all tenors are being viewed positively by the market.
An analyst at Arif Habib Limited said that the KSE-100 index experienced a bullish week, driven by anticipation of $7.0 billion approval from IMF Executive Board for which meeting is scheduled on September 25, 2024. Moreover, 50bps FED rate cut boosted market participation across Asian markets, including local bourse.
Sector-wise positive contributions came from Commercial Banks (up 1,139points), E&P (up 637points), Fertilizer (up 631points), Cement (up 161points) and OGMCs (up 74points). Meanwhile, the sectors that mainly contributed negatively were Refinery (down 30points), Engineering (down 29points), and Glass & Ceramics (down 24points).
Scrip-wise positive contributors were MARI (up 567points), FFC (up 324points), MEBL (up 304points), EFERT (up 287points) and MCB (up 278points). Meanwhile, scrip-wise negative contributions came from NBP (down 33points), PPL (down 29points), DGKC (down 27 points), FFBL (down 23points) and TGL (down 22points).
Foreigner selling continued during this week, clocking in at $23.196million compared to a net sell of $7.5 million last week. Major selling was witnessed in Fertilizer ($9.8 million), E&P’s ($6.1million) and Banks ($2.8 million). On the local front, buying was reported by Mutual Funds ($15.5 million) followed by Individuals ($4.4 million) and Banks ($3.3 million).
Copyright Business Recorder, 2024
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