Weekly Market Roundup

October 31, 2021 (MLN): Pakistan equities managed to hold gaining momentum during the outgoing week as the benchmark KSE-100 index secured 606 points, up by 1.3% to settle at the trade at 46,185 points.

The positive sentiments of the investors were primarily owing to the financial support of $4.2 billion by Saudi Arabia to help ease pressure on trade and increase foreign currency reserves. The financial assistance includes a $3bn deposit in the State Bank of Pakistan while $1.2bn to finance the oil derivative trade throughout the year.

In addition, the PKR appreciation by Rs2.5 has also strengthened investors’ confidence in the local bourse.

However, the technical issues in the newly launched trading system at PSX have restricted the trading activities to a considerable extend. The technical issues identified in the JADE Trading Terminal (JTT) remained the major concern for the market participants.

From a sector-specific lens, positive contributions came from Cement (340pts), Engineering (82pts), Fertilizers (81pts), Paper and Board (41pts), and Automobile Assembler (37pts). Whereas the sectors that contributed negatively included Technology & Communication (-70pts), Oil & Gas Exploration companies (-50pts), and Refinery (-17).

Scrip-wise major gainers were LUCK (174 pts), FFC (60 pts), MCB (41 pts), MLCF (37 pts) and PKGS (37 pts) Whereas major laggards were TRG (-74 pts), MARI (-50 pts) and MEBL (-37 pts), HBL (31 pts), and AVN (-22 pts).

Meanwhile, the KSE All Share Market Cap increased by a Rs89.86billion or 1.14% over the week, being recorded at Rs7.95trillion as compared to a Market Cap of Rs7.86tr recorded last week.

Flow-wise, foreign investors remained net sellers during the week with an outflow of $2.7mn against an outflow of $7.34mn last week. The major selling was done by Foreign Corporates amounting to a net $2.4mn.

On the local side, major buying was reported by Other Organizations ($1.7mn) followed by Insurance Companies ($1.3mn), and individuals ($1.04mn). Meanwhile $0.10mn worth of stocks sold by local Companies.

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