KARACHI: Pakistan Stock Exchange made new history and achieved its historic milestone with surpassing 100,000 mark to hit new highest ever levels during the outgoing week ended on November 29, 2024 on the back of strong interest of local investors coupled with institutional support.
The benchmark KSE-100 index surged by 3,559.09 points on week-on-week basis and crossed 100,000 historic level to close at its new highest ever level of 101,357.32 points.
Average daily volumes on ready counter slightly declined by 1.2 percent to 978.80 million shares during this week as compared to previous week’s average of 990.71 million shares while average daily traded value on the ready counter increased by 7.1 percent to Rs 36.85 billion during this week against previous week’s Rs 34.41 billion.
BRIndex100 increased by 456.10 points during this week to close at 10,901.25 points with average daily turnover of 797.920 million shares.
BRIndex30 soared by 1,464.72 points on week-on-week basis to close at 32,654.17 points with average daily trading volumes of 474.681 million shares.
The foreign investors however remained on the selling side and withdrew $15.119 million from the local equity market during this week. Total market capitalization increased by Rs 367 billion to Rs 12.885 trillion.
An analyst at AKD Securities said that the market remained volatile throughout the week. The volatility stemmed from acceleration in political instability amid opposition party reaching to protest in the country’s Capital, creating uncertainty amongst the investor, leading to a major fall in KSE-100 index, marking a decrease of 3,506points on Tuesday. However, market regained its momentum on Wednesday after the protestors started to back off from Islamabad and the momentum was further fuelled by a circular from the SBP, removing the MDR requirements on deposits held by Commercial banks of financial institutions and public sector enterprises.
This led to the KSE-100 index registering its highest ever intra-day gains of 4,695points on Wednesday, and closing at a record high of 101,357points, marking an increase of 3.6 percent WoW.
Major contributing sectors to this rally were commercial banks, contributing 1,675 points, followed by Technology & Communication with 349 points, and Oil & Gas Exploration, which added 283 points during the week. However, with another circular from the SBP revising its guidelines for profit sharing on saving deposits for Islamic Banking Institutions (IBIs), which resulted in MEBL eroding 439 points during the week.
Secondary market yields on the 6-month bill decreased to 12.12 percent, dropping to the lowest levels seen in over 2.5 years. SBP held FX reserves increased by $131 million WoW, ending the week at $11.4 billion as of November 22, 2024.
Sector-wise, property, leather & tanneries, oil & gas marketing companies, technology & communication and exchange traded funds were amongst the top performers, up 18.5 percent/13.4 percent/9.7 percent/8.2 percent/5.5 percent. On the other hand, jute, woollen, transport, automobile assembler &INV Banks/ INV.cos/ securities cos. were amongst the worst performers with a decline of 13.0 percent/2.2 percent/1.9 percent/0.5 percent/0.4 percent.
Flow wise, major net selling was recorded by foreigners with a net sell of $15.1 million. On the other hand, Insurance Companies absorbed most of the selling with a net buy of $10.6million.
Company-wise, top performers during the week were BOP (up 36.6 percent), AKBL (up 27.7 percent), HBL (up 25.1 percent), JVDC (up 23.7 percent) and MEHT (up 20.7 percent), while top laggards were MEBL (down 11.7 percent), FABL (down 8.8 percent), PSEL (down 7.8 percent), SAZEW (down 4.7 percent) and GHGL (down 3.2 percent).
An analyst at JS Global Capital said bullish momentum continued to prevail, with KSE-100 reaching its historical milestone of 100,000 levels during the week, closing in at 101,357 levels (up 3.6 percent Wow).
The week began with an uncertain political environment amid protests, which led to significant selling in the market. However, the decline was limited, followed by a strong recovery after the protest call-off. Additionally, developments in the banking sector regarding changes in the Minimum Deposit Rate (MDR) kept activity in the sector high throughout the week.
In the recent T-bill auction, the government raised Rs616 billion against a target of Rs800billion, with yields decreasing by 61 to 85bps across different tenors. Similarly, the 6 M Kibor dropped by 96bps WoW to 12.67 percent, reaching its lowest level in over 2.5 years.
Copyright Business Recorder, 2024
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