Weekly Market Roundup

September 19, 2021 (MLN): This week the benchmark KSE-100 index gained nearly 562 points (1.19% WoW) and closed at 46,636 level.

During the week, investors remained cautious ahead of MPS stance earlier on next week, where most analysts have a view of hike in the interest rates by 25bps-50bps.

According to Pearl Securities, the market direction was also led by the mix news inflows including, Talks with the IMF for the sixth tranche to start by month-end, CCoE approves the Pakistan Oil Refinery 2021 in principle, however, it fails to excite investors due to continuous objection, uncertainty over rupee depreciation (reaching a historic 168.94), July LSMI output was down by 4.91%/M, and Current account deficit in August 2021 balloons to $1.476bn.

From a sector-specific lens, negative contributions came from Cement (-287pts), Refinery (-55pts), Oil & Gas Marketing Companies (-54pts), Food & Personal Care Products (-51pts), and Technology & Communication (-44pts). Whereas the sectors that contributed positively included Commercial Banks (130pts), Fertilizer (10pts), Tobacco (6pts), Synthetic & Rayon (5pts), and Leather & Tanneries (3pts).

Scrip-wise major laggards were LUCK (-131pts), MEBL (-102pts), SYS (-70pts), MLCF (-43pts), and DGKC (-41pts).  Whereas major gainers were UBL (73pts), HBL (56pts), FFC (50pts), TRG (35pts) and FABL (28pts).

Meanwhile, the KSE All Share Market Cap decreased by a Rs119.79billion or 1.45% over the week, being recorded at Rs8.13trillion as compared to a Market Cap of Rs8.25tn recorded last week.

Flow-wise, foreign investors continued to be net sellers with an outflow of $10.9mn against a net sale of $18.6mn last week. The major selling was done by foreign corporates amounting to a net $8.68mn.

On the local side, major buying was reported by Individuals ($16.79mn), and Banks/ Dfi ($7.27mn). Other significant transactions included $6.39mn and $5.6mn worth of stocks sold by Local Companies and Brokers respectively.

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