Weekly Market Roundup

December 5, 2021 (MLN): This week domestic equities closed down by 2% or 881 points WoW to 44,114 level.

The bearish sentiments during the week were attributed to the increase in Money Market & Fixed Income yields by 246bps in the latest auctions.

Further, this drastic performance has caused notable rise in ADTV by 21% during the week to 319mn shares mainly on the SBP's new auction target of PKR6.9trn that has induced investors to book capital gains in the midst of expected hike in interest rates on 14th Dec'21 MPC, a report by Shajar Capital highlighted.

This drastic performance during the week has caused Cement sector to underperform 3%, despite increase in banks' exposure to housing sectors along with the hike of c.3%YoY in 5MFY22 local cement dispatches, it added.

Moreover, the major sectors that kept the index largely in the red zone were technology (-198pts), cement (-165pts), oil & gas exploration companies (-101pts), textile (-79pts) and food & personal care products (-67pts). Whereas sectors which contributed positive were banks (59pts), and oil & gas marketing company (20pts)

Scrip-wise major laggards were LUCK (-124pts), TRG (-107pts), SYS (-65pts), MARI (-62pts) and POL (-44pts). Meanwhile, positive contribution came from ATLH (6pts), EFUG (-6pts) and UBL (6pts).

Meanwhile, the KSE All Share market cap decreased by Rs173.6billion or 2.29% over the week, being recorded at Rs7.4trillion as compared to a market cap of Rs7.58tr recorded last week.

Flow-wise, foreign investors remained net sellers during the week with an outflow of $62.8mn against an outflow of $39.14mn last week. The major selling was done by foreign corporates amounting to a net $68mn.

On the local side, major buying was reported by companies with a net buy of $25.7mn followed by individuals, insurance companies and banks with $16mn, $9.7mn and $8.4mn respectively. While mutual funds stood on the other side with the net sell of $2.8mn.

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