November 14, 2021 (MLN): This week, the KSE-100 index continued its negative trajectory, closing at 45,749 level i.e., down by 1,546 points or 3.27% WoW. In USD terms, the return of the index nosedived by 6.42% WoW.
The bear run throughout the week was primarily induced by a gloomy economic outlook, including fear of rising inflationary pressure amid continuous rupee depreciation against the dollar, a report by Spectrum Securities noted.
Despite Saudi Arabia's declaration of a $3 billion deposit with the SBP, the current foreign exchange reserves reported recently do not reflect these inflows, causing the PKR to fall sharply against the US dollar, closing at 175.73/USD. Moreover, the delay in the outcome of the PAK-IMF talks fueled the negative sentiments among investors. Additionally, scars of higher inflation likely making a case for monetary tightening which also augmented the selling at the local bourse, it added.
Participation during the week remained dull with the average daily traded volume standing at 316mn shares against 430mn shares witnessed during last week.
From a sector-specific lens, major sectors that kept the index largely in the red zone were Commercial Banks, Cement, Technology & Communication, Oil & Gas Exploration Companies and Engineering as they took away 277, 255, 226, 140 and 90 points from the benchmark KSE-100 index respectively.
The sectors that contributed positively included Fertilizer (40 pts) and Glass & Ceramics (3 pts).
Scrip-wise major laggards were TRG (-140 pts), PPL (-73 pts), OGDC (-70 pts), LUCK (-65 pts) and UBL (-65 pts). Whereas major gainers were FFC
(48 pts), EFERT (17 pts), ABL (9 pts), MUREB (7 pts) and MARI (6 pts).
Meanwhile, the KSE All Share Market Cap decreased by a Rs278billion or 3.43% over the week, being recorded at Rs8.09trillion as compared to a Market Cap of Rs7.8tr recorded last week.
Flow-wise, foreign investors remained net sellers during the week with an outflow of $5.28mn against an outflow of $11.7mn last week. The major selling was done by Foreign Corporates amounting to a net $8.8mn.
Flow wise, Companies remained the major buyers with a net buy of US$6.5mn) followed by Insurance Companies (net buy of US$5.72mn) while Individuals stood on the other side with the net sell of US$10.24mn followed by Foreigners (net sell of US$5.28mn).
On the local side, major buying was reported by Companies with a net buy of $6.5mn followed by Insurance Companies (net buy of $5.72mn). while Individuals stood on the other side with a net sell of $10.24mn followed by Brokers with a net sell of $0.13mn.
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