Weekly Market Roundup

November 28, 2021 (MLN): This week domestic equities closed down by 5.11% or 2,375 points WoW to 44,144 level.

However, all share average traded volume during the week stood at a high of 264mn (8% WoW) as against 244mn shares traded last week.

The bearish sentiments during the week were attributed to a higher than expected increase in the policy rate by 150 bps by SBP.

In addition, selling by foreign corporate ahead of MSCI reclassification of Pakistan from emerging index to frontier index exerted further pressure on the index.

From a sector-specific lens, major sectors that kept the index largely in the red zone were cement (-462pts), commercial banks (-326pts), technology (-290pts), oil & gas exploration companies (-252pts), and fertilizer (-227pts). Whereas sectors which contributed positive were insurance (3pts), and close-ended mutual funds (2pts).

Scrip-wise major laggards were LUCK (-205pts), TRG (-177pts), HBL (-114pts), PPL (-98pts) and PPL (-95pts). Meanwhile, positive contribution came from ATLH (6pts), EFUG (-6pts) and UBL (6pts).

Meanwhile, the KSE All Share market cap decreased by Rs 356.8billion or 4.49% over the week, being recorded at Rs7.58trillion as compared to a market cap of Rs7.9tr recorded last week.

Flow-wise, foreign investors remained net sellers during the week with an outflow of $39.14mn against an outflow of $25mn last week. The major selling was done by foreign corporates amounting to a net $42.6mn.

On the local side, major buying was reported by individuals with a net buy of $16mn followed by companies and banks with $13.3mn and $8.2mn respectively. While insurance companies and brokers stood on the other side with the net sell of $2.8mn and $1.6mn respectively.

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