Weekly Market Roundup

November 24, 2019 (MLN): The KSE-100 Index gained another 341 points over the week and settled at 37,925-mark, i.e. up by 0.91%, as compared to previous week’s closing of 37,583 points.

The investors’ sentiments remained mixed throughout the week due to the rise in market yields of PIBs in Wednesday’s auction, and overselling of securities by Mutual Funds, which resulted in the benchmark index losing around 1,355 points in just two days. However, the index quickly recovered these losses in Friday’s session as there was no selling done by Mutual Funds.

Power Generation & Distribution and Fertilizer Sector emerged as the top gainers during the week, as they collectively contributed 246 points to the index. Company wise, the scrips of HUBC, FFC, PSO, LUCK and NATF earned the maximum gains.

Meanwhile, the KSE All Share Market Cap increased by Rs. 33.1 billion or 0.46% over the week, being recorded at Rs. 7.24 trillion as compared to a Market Cap of Rs. 7.21 trillion recorded last week.

This week, the local investors bought securities worth Rs. 75.4 billion, amongst which, Individual investors emerged as the largest net buyers as they bought securities worth Rs. 46 billion. On the other hand, local investors sold securities worth Rs. 76.8 billion. This resulted in an overall net selling of Rs. 1.3 billion over the week.

Forex Update

PKR continued to extend gains against the dollar in the interbank market for the seventh successive week, appreciating by another 10 paisa.

In the preceding seven weeks PKR has appreciated by Rs.1.24 against the dollar.

The rupee continued to show stability show a 10 day annualized volatility of 0.22 percent.

The rupee touched a high (bid) of 155.60 and a low (ask) of 155.24 during the week before closing at 155.2935.

Fixed Income

In a reversal of recent trend, Yields across almost all tenors increased after higher than expected inflation numbers were reported and the forlorn hopes of an interest rate cut all but fizzled out after cut of yields in the T-Bill auction increased by 30 and 46 basis points for 3 and 12 months.

The only tenor which witnessed a decline in yields was for 2 year PIB which came down by 8 basis points.

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