Weekly Market Roundup

October 3, 2021 (MLN): The benchmark KSE-100 index closed the departed week at a level of 44,872, registering a loss of 202 points (-0.4%) over last Friday. This marks the third Friday that the index close negative on a weekly basis.

The market commenced on a negative note this week due to high global commodity prices such as all-time high coal prices of USD 200.50/ton tagged with Arab Light Price reaching a
3-Yr high of PKR 80.20/bbl.

According to Arif Habib Limited, the sentiment was further fueled by continuous depreciation of PKR against USD, climbing up to the highest ever level of PKR 170.66, raising economic concerns. Moreover, the market experienced a meltdown after a month-old republican draft proposing to investigate Pakistan’s involvement in the Taliban’s takeover in Afghanistan resurfaced. Meanwhile, investor sentiment turned positive on the back of expectation of re-entry in IMF program along with govt. announcing measures to slow down imports, which cushioned the dip.

From a sector-specific lens, negative contributions came mainly from Commercial Banks (-117pts), Pharmaceuticals (-47pts), Paper & Board (-33pts), Cement (-25pts), and Fertilizer (-24pts). Whereas the sectors that contributed positively included Oil & Gas Exploration Companies (35pts), Oil & Gas Marketing Companies (20pts), Engineering (17pts), Refinery (12pts), and Tobacco (11pts).

Scrip-wise major laggards were MCB (-84pts), HBL (-84pts), FFC (-42pts), LUCK (-33pts), and UBL (-30pts).  Whereas major gainers were MBEL (55pts), POL (47pts), KEL (25pts), SNGP (21pts) and ENGRO (20pts).

Meanwhile, the KSE All Share Market Cap decreased by a Rs22.9billion or 0.29% over the week, being recorded at Rs7.8trillion as compared to a Market Cap of Rs7.83tn recorded last week.

Flow-wise, foreign investors emerged as net sellers during the week with an outflow of $21.9mn against an inflow of $6.7mn last week. The major selling was done by overseas Pakistani amounting to a net $24.15mn.

On the local side, major buying was reported by Banks ($10.14mn), Insurance companies ($8.1mn), Other Organizations ($4.8mn), and Individuals ($3.1mn). Other significant transactions included $4.3mn and $1.7mn worth of stocks sold by Other Organizations and Mutual Funds respectively.

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