August 11, 2023 (MLN): The benchmark KSE-100 Index closed Friday's trading session at 48,424.4 showing an increase of 616.06 points.

The index remained positive throughout the session touching an intraday high of 48,898.82.

Total Volume of the KSE100 Index was 242.051 million shares.

Pakistan’s stock market received a boost of positivity after Morgan Stanley Capital International (MSCI) showed in its latest report that it had added 15 new Pakistani scrips to its Frontier Market Index.

This means that Pakistan now has 58 stocks in the MSCI Frontier Market Index, with a record 42 of them being total additions in this review.

These modifications will significantly increase Pakistan’s weight within the MSCI FM Index, from the current 0.6% to 2.7%.

Of the 100 index companies 72 closed up, 19 closed down, 5 were unchanged while 4 remained untraded.

KSE100 index was supported by Commercial Banks with 246.22, Oil & Gas Exploration Companies with 144.19, Fertilizer with 103.29, Cement with 37.01 and Automobile Assembler with 27.57 points.

Companies adding points to the index were MCB with 74.02, OGDC with 52.43, ENGRO with 44.86, BAFL with 41.77 and PPL with 41.75 points.

KSE100 Index was let down by Inv. Banks / Inv. Cos. / Securities Cos. with 60.78, Refinery with 2.82, Miscellaneous with 1.04, Vanaspati & Allied Industries with 0.3 and Leasing Companies with 0.1 points.

Companies dragging the index lower were DAWH with 60.51, LOTCHEM with 14.13, TRG with 6.51, CEPB with 6.35 and COLG with 5.92 points.

In the broader market, the All-Share index closed at 32,137.83 with a net gain of 387.95 points.

Total market volume was 368.335 million shares compared to 322.207 from the previous session while traded value being recorded at 17.06 billion showing an increase of Rs.4.31 billion.

There was 142,943 trades reported in 330 companies with 207 closing up, 100 closing down and 23 remaining unchanged.

Symmetry Group Limited (SYM) concluded its Initial Public Offering (IPO) with success, attracting strong demand from investors and setting the strike price at Rs4.30 per share. The IPO was over-subscribed by 1.58 times, indicating the confidence of the market participants in the company’s prospects.

Additionally, investors cheered the recent news flow regarding the Gulf nations bringing in $25 billion of investment.

Meanwhile, there is still no major development on the novel scheme to ease the gas sector’s circular debt.

On the earnings front, some of the listed companies reported disappointing financial results for the first half of the year 2023. For instance, Lotte Chemical Pakistan Limited (LOTCHEM) saw its profitability plunge by 47.17% YoY, mainly due to higher input costs and lower sales volumes. Similarly, Service Global Footwear Limited (SGF) posted a modest growth of 24.09% YoY in its profit after tax.

While Frieslandcampins Engro Foods Limited (FCEPL) recorded a jump of 41.37% YoY in its profitability to Rs1.33bn [EPS: Rs1.73] in 1HCY23.

On the economic front, the Weekly Sensitive Price Indicator (SPI) for the Combined Group increased by 0.69% WoW and 30.82% YoY during the week ended August 10, 2023, reflecting the persistent inflationary pressures in the economy.

Moreover, the foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased by $110.4 million or 1.35% WoW to $8.04 billion during the week ended on August 04, 2023, mainly due to debt repayments. The country’s total reserves also fell by $124.6m or 0.93% WoW to $13.34bn.

On the global front, the U.S. consumer price index (CPI) for the month of July 2023 came in at 3.2% YoY, slightly higher than 3% YoY in June. However, it was softer than the analysts’ estimates of 3.3%, showing a moderation in the inflationary momentum in the world’s largest economy.

KSE-100 Weekly Time-Frame chart

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Posted on: 2023-08-11T17:22:46+05:00