Weekly Market Roundup

December 12, 2021 (MLN): This week domestic equities closed up by 0.38% or 163 points WoW to 43,395 level.

The optimism was in line with global equities as the Omicron variant considered to be less risky for economic recovery while a $3bn deposit from Saudi Arabia also improved investors’ sentiments. Despite a good start, the index could not hold the momentum and succumb to selling pressure as PKR continues to mark its new lows
during the week and settled at PKR 177.71/$, a report by Spectrum Securities cited.

Moreover, the market set its sight on the upcoming monetary policy meeting and remained under pressure on the expectations of an increase in interest rates.

From a sector-specific lens, major sectors that kept the index largely in the green zone were oil and gas exploration companies (320pts), technology (257pts), food (32pts), chemical (29pts), and power generation & distribution companies (9pts). The oil and gas exploration remained among the top performers on the back of increasing oil after it was declared that COVID-19’s new variant, ‘Omicron,’ isn’t as contagious as it was initially assessed to be. Additionally, the technology sector remained in the limelight with the sector almost immune to rupee depreciation and increase in interest rates.

Whereas, sectors which contributed negative were commercial banks (-187pts), cement (-112pts), textile (-41pts), pharmaceuticals (-40pts) and fertilizer (-27pts).

Scrip-wise major gainers were TRG (208pts), PPL (155pts), OGDC (101pts), SYS (49pts) and MARI (34pts). Meanwhile, negative contribution came from ENGRO (-66pts), HBL (-64pts) and UBL (-44pts), MEBL (-40pts), and LUCK (-38pts).

Meanwhile, the KSE All Share market cap increased by a Rs40.12billion or 0.54% over the week, being recorded at Rs7.45trillion as compared to a market cap of Rs7.4tr recorded last week.

Flow-wise, foreign investors remained net sellers during the week with an outflow of $0.988mn against an outflow of $25mn last week. The major selling was done by foreign corporates amounting to a net $1.1mn.

On the local side, major buying was reported by other organizations with a net buy of $3.9mn followed by companies and individuals with $2.13mn and $1.3mn respectively. While mutual funds stood on the other side with a net sell of $4.2mn.

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