Weekly Market Roundup

February 6, 2022 (MLN): This week, the benchmark KSE-100 index rose by a significant 1.85% or 832 points on a cumulative basis, mainly driven by the anticipation (and finally announcement) of $1bn tranche disbursed by IMF.

In terms of USD, the index rose by 3.18% from last week.

The market also welcomed $1bn proceeds from the issuance of international Sukuk bonds in the midweek. Bullish momentum expedited further owing to investors’ optimism with respect to forthcoming healthy corporate results, a report by Arif Habib Limited mentioned.

The market sentiment further improved on the news of an increase in revenue collection by FBR and a reduction in trade deficit on a MoM basis that led to buying activity across the board.

From the sector-specific lens, commercial banks, oil & gas exploration companies, Fertilizer, oil & gas marketing companies and Textiles kept the index in green territory as they added 189, 127, 126, 92, and 75 points to the index respectively.

Contrary to that, the technology, paper & board, power generation & distribution, and Automobile sector during the week collectively snatched 55 points from the bourse

Scrip-wise, HBL, FFC, BAHL, OGDC and PSO were the best-performing stocks during the week as they added 264 points to the index, whereas TRG, SYS, HUBC, PSEL, and POL eroded 71 points from the index.

Meanwhile, the KSE All Share market cap increased by Rs136.8 billion or 1.77% over the week, being recorded at Rs7.85trillion as compared to a market cap of Rs7.7tr recorded last week.

Flow wise, foreigners were the net sellers during the week, offloading stocks worth $4.4mn compared to a net sale of $4mn last week. Major selling was witnessed in technology ($2mn) and commercial banks ($1.7mn).

On the local side, the majority of the buying was reported by organizations, mutual funds and banks amounting to $3.9mn, $2.9mn, and $2mn respectively. However, insurance companies stood on the other side with net selling of $4mn.

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