KARACHI: Pakistan’s benchmark KSE-100 Index witnessed largest decline after eight quarters where index was down by 8.0 percent on quarter-on-quarter basis. The index fell 17 percent in USD terms in the second quarter of 2022.

Delay in the IMF program, increased political uncertainty, rise in inflation, and expanding Current Account Deficit (CAD) continued to impact the market during the quarter, an analyst at Topline Securities said.

The benchmark KSE-100 Index was down by 12 percent in FY22 against increase of 38 percent in FY21.

Pakistan was not amongst the top or worst performers during this period. Sri Lanka (down 33 percent), Namibia (down 27 percent), and Peru (down 27 percent) were the worst performing markets during the quarter, whereas Lebanon (up 45 percent), Russia (up 33 percent) and Jordan (up 11 percent) were the top performing markets. These are total returns in USD terms.

In the second quarter of 2022, average daily traded volumes in the Cash and Ready market declined by 63 percent on year-on-year basis while increased by 9.0 percent on quarter on quarter basis and stood at 250 million shares. The average traded value also deteriorated by 64 percent on YoY while remained flat on QoQ basis to Rs 7.2 billion per day during the second quarter of 2022.

The average volumes in the Futures market also declined by 28 percent on YoY while increased by 7.0 percent on QoQ to 106 million shares per day. The average traded value of the same declined by 65 percent on YoY and 10 percent on QoQ to Rs 3.4 billion/day.

“No IPO was seen in main board during the second quarter of 2022, however, we saw one IPO in GEM Board of Supernet Limited (GEMSPNL) in the second quarter of 2022 where company raised Rs 475 million at a strike price of Rs 22.5/share.”

Mutual Funds were top sellers during the quarter with net selling of $59 million followed by Insurance of $58 million, Foreign Corporates of $38 million, and Brokers of $3 million. Individuals, Banks, and Companies were key buyers with net buying of $76 million, $34 million, and $29 million respectively.

Key cyclical sectors that underperformed market during the quarter included Cements, Automobile Parts and Engineering. The key sectors that outperformed were Refinery and Oil and Gas Marketing driven by higher refinery margin and news flows of hike in gas prices.

Copyright Business Recorder, 2022