Weekly Market Roundup

February 20, 2022 (MLN): This week, the benchmark KSE-100 index nosedived by 0.88% or 403 points on a cumulative basis, owing to after massive spike in oil prices followed by U.S. and Russia tension at Ukraine.

In terms of USD, the index declined by 1.5% from last week.

The brent oil prices touched a 7-years high level of $96/bbl which increased fear over monetary tightening. Furthermore, petrol and diesel prices during the week increased by 8.1% and 6.6% respectively which would translate in higher inflation going forward, a report by Spectrum Securities mentioned.

Moreover, looming political uncertainty has also resulted in panic selling in the market. On the flip side, robust corporate results outperformed the market expectations which has limited the downside movement of the index.

From the sector-specific lens, commercial banks, power generation & distribution companies, investment banks, technology and cement kept the index in red territory as they snatched 88, 66, 45, 39, and 37 points from the index respectively.

Contrary to that, automobile, chemical, oil & gas exploration companies, sugar & allied industries, synthetic & rayon sector during the week collectively added 31 points to the bourse

Scrip-wise, HUBC, ENGRO, MEBL, SYS and DAWH were the worst-performing stocks during the week as they eroded 234 points from the index, whereas EFERT, SNGP, MTL, UBL, and EPCL added 132 points to the index.

Meanwhile, the KSE All Share market cap decreased by Rs79 billion or 1% over the week, being recorded at Rs7.79trillion as compared to a market cap of Rs7.87tr recorded last week.

Flow wise, foreigners were the net sellers during the week, offloading stocks worth $1.97mn compared to a net sale of $5.9mn last week, largely backed by foreign corporations amounting to $3.43mn. Major selling was witnessed in technology ($1.5mn) and commercial banks ($0.5mn).

On the local side, the majority of the buying was reported by banks, individuals and companies amounting to $4.8mn, $2.4mn, and $1.5mn respectively. However, mutual funds and brokers stood on the other side with a net selling of $5.36mn and $1mn respectively.

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