Weekly Market Roundup

September 12, 2021 (MLN): This week the benchmark KSE-100 index gained nearly 240 points (0.5% WoW) and closed at 47,198 level.

The major event during the outgoing week was the MSCI decision to downgrade Pakistan from Emerging Market (EM) to Frontier Market (FM), reclassification will take place in one step, coinciding with the Nov’2021 Semi Annual Index Review.

The other important events that impacted investors’ sentiments during the week include, Forex reserves declined by $125.1mn on account of external debt repayment to reach $27.1bn, Remittances remained flat MoM to stand at $2.7bn during Aug-21. The government is intervening to reduce steel prices by either reducing taxes or fix the price regime, where the latter option could be detrimental for local steel manufacturers.

From a sector-specific lens, positive contributions came from Technology & Communication (214pts), Miscellaneous (168pts), Commercial Banks (148pts), Pharmaceuticals (59pts), and Food & Personal Care Products (14pts). Whereas the sectors that contributed negatively included Cement (-155pts), Oil & Gas Exploration Companies (-56pts), Fertilizer (-35pts), Power Generation & Distribution (-35pts), and Engineering (-19pts).

Scrip-wise major gainers were PSEL (164pts), MEBL (147pts), SYS (115pts), TRG (99pts), and Nestle (39pts).  Whereas major laggards were LUCK (-103pts), HBL (-57pts), ENGRO (-51pts), OGDC (-33pts) and PPL (-33pts).

Meanwhile, the KSE All Share Market Cap increased by a Rs14.34billion or 0.17% over the week, being recorded at Rs8.255trillion as compared to a Market Cap of Rs8.24tn recorded last week.

Flow-wise, foreign investors continued to be net sellers with an outflow of $18.6mn against a net sale of $5.87mn last week. The major selling was done by foreign corporates amounting to a net $18.66mn.

On the local side, major buying was reported by Individuals ($12.86mn), Insurance Companies ($6.2mn), and Other organizations ($3.28mn). Other significant transactions included $3.76mn worth of stocks sold by Banks / Dfi.

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