Weekly Market Roundup

January 9, 2022 (MLN): This week, KSE-100 index closed up by 1.68% or 749 points WoW to settle at 45,345 level.

The market kicked-off new year with renewed optimism, led by easing in the trade deficit on MoM basis MoM, positive development regarding Finance (supplementary bill), appreciation of PKR against USD, and hefty foreign buying in technology scrip.

Investor participation during the week increased by 46% WoW to 318mn in terms of volume while an increase of 32% WoW was witnessed in the average daily traded value.

In terms of index contribution, the top 5 sectors throughout the week were fertilizer (282pts), power generation and distribution (159pts), commercial banks (146pts), oil and gas exploration companies (111pts), and investment companies (55pts). The power sector during the week remained in limelight on the back of news of disbursement of the first installment of PKR60bn to 2002 power policy IPPs.

On the flipside, cement, technology, tobacco, paper & board and sugar & allied industries took away 38 points from the KSE100 Index. The cement sector witnessed selling pressure during the week as coal prices recorded a 32% jump WoW while dispatches fell by 4.2% MoM and 4% YoY during Dec’21.

Scrip-wise, HUBC, SYS, POL, EFERT, FFC were the best-performing stocks during the week as they added 477 points to the index, whereas TRG, MLCF, MUREB, DGKC, and KOHC took away 183 points from the index.

Flow wise, foreigners were the net buyers during the week, purchasing stocks worth $24.2mn compared to $8.1mn last week. Major buying was witnessed in technology ($22.5mn) and banks ($0.7mn).

On the local side, the majority of the selling was reported by individuals and mutual funds amounting to $15.1mn and $8.4mn, respectively. However, banks stood on the other side with net buying of $7mn.

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