Weekly Market Roundup

December 26, 2021 (MLN): This week domestic equities managed to close up by 0.5% or 217 points WoW to 44,118 level.

The week started on a positive note as the market gained confidence over the drop in yields in the secondary market due to SBP’s announcement of liquidity injection through OMOs for 63 days. Nonetheless, concerns over macroeconomic indicators, issue of gas shortages, and delays in the Mini-budget tempted investors to book gains during the week, a report by JS Global cited.

Moreover, elevated current account deficit numbers and depreciation of PKR against the dollar upset investors' sentiments. As a result, investor participation remained dull as average daily traded volumes shrunk by 19% WoW to 215mn shares while traded value averaged at US$45mn, shrinking by 5% WoW. 

From a sector-specific lens, major sectors that kept the index largely in the green zone were technology (100pts), power generation and distribution (42pts), food (39pts),  pharmaceuticals (33pts), and auto assembler (25pts). Whereas, sectors that contributed negatively were chemicals (-33pts), commercial banks (-22pts), oil and gas marketing companies (-17pts), oil and gas exploration companies (-11pts), and Refinery (-4pts).

Scrip-wise major gainers were TRG (134pts), HUBC (34pts), ABOT (24pts), OGDC (23pts) and HCAR (22pts). Meanwhile, negative contributions came from MEBL (-43pts), SYS (-29pts), COLG (-26pts), HBL (-22pts), and PPL (-22pts).

Meanwhile, the KSE All Share market cap increased by Rs40.12 billion or 0.53% over the week, being recorded at Rs7.56 trillion as compared to a market cap of Rs7.52 trillion recorded last week.

Flow-wise, foreigners continued to turn net buyers with an inflow of US$3.7mn, cushioning the sell-off by Mutual funds ($3.6mn), and Individuals ($2.6mn).

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