Weekly Market Roundup

December 1, 2019 (MLN): The KSE-100 Index gained nearly 5,083 points during the month of November, and settled at 39,287, i.e. up by 14.86%, as compared to previous month’s closing of 34,203 points.

Over the week, the benchmark index gained around 1,361 points, which is 3.59% higher than the previous week’s closing of 37,925 points.

It may be worthwhile to mention that this is highest gain for the benchmark index in the last six years, and the third consecutive month wherein it has landed in the green zone.

A lot of factors played a hefty role in helping the benchmark index mark another victor for itself, including the successful review by International Monetary Fund, major improvement in economic indicators, and stability in the political environment of the country.

Commercial Banks emerged as the best performing sector during the month, as it contributed 1,298 points to the index, followed by Fertilizer Sector (579 pts), Power Generation & Distribution Sector (485 pts), Cement Sector (428 pts) and E&P Companies (305 pts).

Company wise, the scrips of HUBC (396 pts), HBL (320 pts), ENGRO (293 pts), LUCK (281 pts) and MCB (254 pts) earned the maximum gains.

Meanwhile, the KSE All Share Market Cap increased by Rs. 821.9 billion or 12.29% over the month, being recorded at Rs. 7.51 trillion as compared to a Market Cap of Rs. 6.69 trillion recorded last month.

This month, the local investors bought securities worth Rs. 296.3 billion, amongst which, Individual investors emerged as the largest net buyers as they bought securities worth Rs. 184.8 billion. On the other hand, local investors sold securities worth Rs. 297.7 billion. This resulted in an overall net selling of Rs. 1.38 billion over the month.

Forex:

The Pak Rupee continued to appreciate steadily against the Dollar in the interbank market gaining another 5 paisa during the week, closing at 155.24.

The local currency extended it run to the eighth successive week and has appreciated by Rs.1.30 during the process.

In the month of November Rupee gained 43 paisa or 0.28 percent.

This is the strongest value PKR has been at since June 13, 2019. The rupee has regained Rs.4.8 or 3 percent of its value during the first 5 months of FY20.

Fixed Income:

During the week secondary market yields displayed a mixed trend with short term yields increasing while longer term yields marginally decreased.

Yields for 3, 6 and 12 months increased by 6, 4 and 9 basis points while 3, 5 and 10 year witnessed a decrease of 5, 4 and 4 basis points.

During the month of November yields witnessed an overall mixed trend after the cut off yields in the PIB auction remained unchanged while the latest MTB auction witnessed an increase in 3 and 12 year cut offs.

3, 6 and 12 month yields during the month increased by 37, 33 and 36 basis points. The 3 and 10 year yields increased by 15 and 5 basis points while the 5 year yield decreased by 13 basis points.

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