Weekly Market Roundup

March 06, 2022 (MLN): After witnessing a turbulent week owing to the Russia-Ukraine crisis, the market exhibited a recovery trend throughout this week due to PM’s relief package announcement where petrol prices were slashed by Rs10/litre while electricity rates were revised down by Rs5/unit until next year budget alongside the announcement of yet another amnesty scheme to bolster industrial investment.

However, tensions between Russia and Ukraine limited overall gains as oil prices surged past $115/bbl amid supply chain disruptions concerns, a report by BMA Capital said.

Furthermore, news regarding worsening trade deficit, trade disruption with Ukraine, hike in gas prices by around 16% and a 5% YoY decline in Feb’22 cement dispatches further dampened investors’ interest, leading to increased pressure on the local bourse increasing from 43,984 points to 44,803 points before closing at 44,551 points, up by 567 points or 1.3% WoW.

In terms of USD, the index inclined by 1.07% from last week.

From the sector-specific lens, oil & gas exploration, technology, fertilizer, chemical, and power generation and distribution sector kept the index in green territory as they added 402, 129, 111, 24, and 16 points to the index respectively.

Contrary to that, cement, oil & gas marketing companies, automobile, insurance, and leather & tanneries during the week collectively snatched 109 points from the bourse.

Scrip-wise, PPL, OGDC, TRG, POL, and EFERT were the best-performing stocks during the week as they added 533 points to the index, whereas LUCK, MCB, PSO, DGKC, and DAWH eroded 124 points from the index.

Meanwhile, the KSE All Share market cap increased by Rs122.2 billion or 1.62% over the week, being recorded at Rs7.66 trillion as compared to a market cap of Rs7.5tr recorded last week.

Flow-wise, foreigners were the net sellers during the week, offloading stocks worth $0.96mn compared to a net sale of $3.2mn last week, largely backed by foreign corporations amounting to $2.2mn. Major selling was witnessed in OMCs ($1.5mn), Banks ($1.4mn) and Cement ($0.7mn) sectors.

On the local side, the majority of the buying was reported by banks, and brokers amounting to $2.4mn and $2.1mn, respectively. However, mutual funds stood on the other side with net selling of $1.72mn.

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