Weekly Market Roundup

October 24, 2021 (MLN): Following its previous week's momentum, the benchmark KSE-100 index gained 756.83 points during the departed week or up by 1.69% WoW as the index settled at 45,578 level.

Growing optimism on talks between Pakistan and the International Monetary Fund (IMF) for the release of the sixth tranche under Extended Fund Facility (EFF), acted as a catalyst to improve investors’ sentiments. Reduction in current account deficit by 24% MoM in Sept’21 and ease off in commodity prices also supported the index.

On the flip, continuous drop in PKR/USD parity to PKR 174 (all-time high exchange rate), reduction in SBP reserves by 8% WoW to USD 17.5bn and FATF retaining Pakistan on grey-list in its plenary meeting, kept the index in check, a closing note by Arif Habib highlighted.

From a sector-specific lens, positive contributions came from Commercial Banks (463pts), Cement (184pts), Oil & Gas Exploration Companies (137pts), Fertilizers (113pts), and Insurance (43pts). Whereas the sectors that contributed negatively included Technology & Communication (-155pts), Food & Personal Care Products (-31pts) and Engineering (-27pts).

Scrip-wise major gainers were HBL (187pts), UBL (150pts), ENGRO (99pts), LUCK (72pts), and MCB (64pts).  Whereas major laggards were TRG (-113pts), PSO (-27pts), SYS (-26pts), KAPCO (-24pts) and FFC (-21pts).

Meanwhile, the KSE All Share Market Cap increased by Rs68.60 billion or 0.88% over the week, being recorded at Rs7.86trillion as compared to a Market Cap of Rs7.79tn recorded last week.

Flow-wise, foreign investors continued to be net sellers with an outflow of $7.34mn compared to a net sell of $13.3mn last week. The major selling was done by foreign corporates amounting to a net $8.66mn.

On the local side, major buying was reported by Insurance Companies ($4.60mn) and Other organizations ($2.46mn). Other significant transactions included $1.88 million worth of stocks sold by Mutual Funds.

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