KARACHI: Pakistan Stock Exchange witnessed bullish trend during the first three trading sessions, however selling pressure in last two sessions minimized its gains during the outgoing week ended on October 11, 2024.
The benchmark KSE-100 index increased by 1,951.44 points on week-on-week basis and closed at 85,483.40 points.
Trading activities improved as average daily volumes on ready counter increased by 52.2 percent to 523.32 million shares during this week as compared to previous week’s average of 343.89 million shares while average daily traded value on the ready counter increased by 77.8 percent to Rs 29.72 billion during this week against previous week’s Rs 16.72 billion.
BRIndex100 inched up by 2.01 points during this week to close at 9,082.40 points with average daily turnover of 92.105 million shares.
BRIndex30 closed at 27,379.87 points, down 280.59 points during this week with average daily trading volumes of 67.074 million shares.
The foreign investors however remained on the selling side and withdrew $22.633 million from the local equity market. Total market capitalization increased by Rs 277 billion during this week to Rs 11.156 trillion.
An analyst at AKD Securities said that the market began the week on a strong positive note and sustained its momentum through the initial days, with the KSE-100 index reaching a record high closing of 85,669points on Wednesday. However, concerns in the power sector amid the termination of IPP contracts, coupled with some profit-taking in the last two sessions, slightly dragged the index to close at 85,483points on Friday, still recording a weekly gain of 2.3 percent/1,951 points.
Overall positive sentiment was largely driven by improved liquidity toward equities, as local funds continued to shift flows from fixed-income assets due to easing interest rates. Investor optimism was further bolstered by the visit of a Saudi delegation, which resulted in the signing of 27MOU’s worth $2.2billion, and discussions surrounding the Reko-Diq stake sell. Additionally, the government finally terminated Power Purchase Agreements (PPA) with five Independent Power Producers (IPPs) during the week, with discussions regarding 17 more IPPs lined up for future negotiations to shift from Take-or pay model to Take-and-pay.
Sector-wise, Transport, Modarabas, and Woollen were amongst the top performers, up 18.6 percent/11.5 percent/9.9 percent, respectively. On the other hand, power generation & distribution, vanaspati & allied industries, and paper &board were amongst the worst performers with a decline of 6.4 percent/2.5 percent /2.5 percent.
Company-wise, top per formers during the week were PTC (up 18.7 percent), PSO (up 17.3 percent), ATLH (up 13.3 percent), LCI (up 12.9 percent) and PPL (up 11.3 percent), while top laggards were HUBC (down 19.1 percent), KOSM (down 13.5percent), NCPL (down 10.9 percent), YOUW (down 8.7 percent) and LUCK (down 8.3 percent).
An analyst at JS Global Capital said that the KSE-100 continued its bullish momentum throughout the week, posting a significant growth of 2.3 percent WoW, closing at 85,483 points.
Despite the significant foreign outflows of $23 million during the week, the index remained elevated driven by off setting local buying mainly led by Mutual Funds and Insurance Companies amid positive economic developments.
The main highlights of the week were the termination of five IPP contracts, including HUBCO’s base plant. Additionally, during the visit of the Saudi delegation to Pakistan, MoUs worth $2.2billion were signed across various sectors. There was also notable progress on the Reko Diq project, with the Saudi Minister of Investment announcing that Manara Minerals is poised to acquire a stake in the project.
Another significant development took place whereby OGRA proposed increase in margins for OMC’s of about Rs1.35/litre.
Copyright Business Recorder, 2024
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