KARACHI: Pakistan Stock Exchange witnessed positive trend during the outgoing week ended on July 01, 2022 on the back of fresh buying in various sectors.
The benchmark KSE-100 index surged by 578.56 points on week-on-week basis and closed at 41,630.35 points. Trading activities however remained thin as average daily volumes on ready counter decreased by 33.9 percent to 198.78 million shares as compared to previous week’s average of 300.50 million shares. Average daily traded value on ready counter declined by 31.8 percent to Rs 6.25 billion against previous week’s Rs 9.16 billion.
BRIndex100 gained 48.7 points during week to close at 4,117.82 points with average daily turnover of 173.312 million shares.
BRIndex30 inched up by 130.26 points on week-on-week basis to close at 15,056.48 points with average daily trading volumes of 114.080 million shares.
Total market capitalisation increased by Rs 100 billion during this week to Rs6.962 trillion.
“After an astounding super tax imposed on 13 sectors on Friday last week, the KSE-100 index started the week with robust performance gaining 827points on Monday but was unable to continue its momentum and followed a topsy-turvy ride over the rest of the week”, an analyst at AKD Securities said.
Uncertainty on IMF front, $1.4billion (up 131 percent on month-on-month) current account deficit (CAD) for May’22, fear of 100-150bps rise in policy rate in next MPS and amendments in finance bill approved in the National Assembly dominated the market sentiment throughout the week and the benchmark KSE-100 index gained 1.41 percent on WoW to close at 41,630points.
The market participation remained sluggish where the average daily turnover decreased 33.8 percent on WoW to 198.8million shares. Moreover, the rupee sustained its gain against US$ to close at 204.8/ US$, appreciating 1.31 percent on WoW. SBP also conducted T-bill auction this week where the central bank raised PkR1.65trillion against the target of PkR0.8trillion. Furthermore, SBP also raised PkR209billion on PIB-Floating rate notes with tenures of 2 and 3 years.
Sector-wise, the top performing sectors were textile weaving (up 8.0 percent), and Pharmaceuticals (up 5.0 percent), while the least favorite sectors were Refinery (down 1.0 percent) and Modarabas (down 1.0 percent).
Stock-wise, top performers were YOUW (up 11.6 percent), PSMC (up 11.1 percent), HCAR (up 8.8 percent), DGKC (up 8.7 percent) and SNGP (up 7.0 percent), while laggards were SCBPL (down 4.3 percent), ASL (down 4.2 percent), KAPCO (down 3.8 percent), SML (down 3.6 percent) and EPCL (down 3.4 percent).
Flow wise, banks/DFI remained the major buyers with (net buy of $6.8million) followed by individuals (net buy of $4.1million) while insurance companies stood on the other side with (net sell of $12.2million) followed by mutual funds (net sell of $2.6 million).
An analyst at JS Global Capital said that Pakistan equities closed the week at 41,630, reporting an increase of 1.4 percent on WoW.
The week started on an optimistic note as investors brushed off the pessimism after the announcement of Super Tax last week. Positive news regarding the receipt of the MEFP from IMF and credit of $2.3billion from China supported the market during the week. Pak rupee continued to extend gains against the greenback whereas cut-off yields on 3 month and 6 month Treasury bills in the recent auction fell by 2 bp and 15 bp, respectively compared to the previous auction.
Copyright Business Recorder, 2022