Weekly Market Roundup

January 2, 2022 (MLN): The stock market remained flat throughout the departed week, gaining just 180 points or 1.08% WoW to close in at 44,596 points level.

The flattish performance of the market was owing to lack of clarity on implications of supplementary Finance Bill & mini-budget and looming concerns of Omicron variant across major cities of Pakistan.

However, the market adopted a positive momentum for the remaining week once uncertainties related to supplementary Finance Bill & mini-budget gradually began to dispel after it was tabled in Cabinet, a report by Arif Habib Limited cited.

The week neared its end with investor sentiments further strengthening after the supplementary Finance Bill and mini budget received Cabinet’s approval, as it was the last hurdle remaining in the way of USD1 bn tranche disbursement from IMF (meeting due on 12th Jan 2022). Furthermore, the PKR/USD Parity strengthened to PKR 176.51 (4-weeks high).

From a sector-specific lens, major sectors that kept the index largely in the green zone were cement (112pts), commercial banks (72pts), fertilizer (70pts), refinery (45pts), and tobacco (32pts).

Whereas, sectors which contributed negative were power generation (-18pts), sugar & allied industries (-2pts), chemical (-2pts), technology (-1pts) and investment banks (-1pts).

Scrip-wise major gainers were MCB (45pts), POL (34pts), ENGRO (33pts), DGKC (33pts) and PAKT (32pts). Meanwhile, negative contribution came from HUBC (-39pts), HMB (-18pts), ABOT (-17pts), PPL (-13pts), and COLG (-7pts).

Meanwhile, the KSE All Share market cap increased by a Rs125billion or 1.66% over the week, being recorded at Rs7.68trillion as compared to a market cap of Rs7.5tr recorded last week.

Flow-wise, foreign buying witnessed this week clocking in at $8.1mn compared to a net sell of $3.7mn last week. The major buying was reported by foreign corporates amounting to a net $8.8mn. Sector-wise, major buying was witnessed in Technology ($4.8mn) and All Other Sectors ($2.5mn).

On the local side, major selling was reported by banks/DFIS ($3.27mn) followed by mutual funds ($3.1mn), organizations ($2.46mn), individuals ($1.98mn), insurance companies and brokers with $1.7mn and $1.6mn respectively. While companies stood on the other side with a net purchase of $6mn, respectively.

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