Weekly Market Roundup

April 10, 2022 (MLN): In the outgoing week, the benchmark KSE-100 index remained volatile as it ended the week with a decline of 708 points or 1.57% to settle at the 44,444 points level.

Initially, the bourse witnessed a selling spree due to the political events that took in the national assembly where the no-confidence motion against the sitting Prime Minister was dismissed by the speaker and the dissolution of assemblies by the PM dented the investors’ confidence. Similarly, a massive depreciation in PKR against the greenback due to a decline in the country’s forex reserve also hit the investors’ sentiments.

However, the bourse recovered given the supreme court decision to set aside the previous deputy ruling and release the authorities of the national assembly along with the prime minister and further gave orders to the national assembly speaker to conduct an assembly session on 9 April the session cannot be adjourned without the conclusion of the no-trust motion.

On the economic front, the SBP raise the interest rate by 250pts to 12.25%The main motive for the increase in the Policy Rate is to safeguard external accounts and to control inflation. Although, the higher interest rate depresses the market investors expect no further rate hikes in near future, a note by Spectrum Securities said.

During the week, the bourse witnessed 3 sessions in favour of bull while 2 sessions ended in the favour of bear. The average daily traded value in benchmark remained at Rs3.81bn with an average daily volume of 67.78mn shares.

Sector-wise negative contributions came from Cement (318pts), Oil & Gas Exploration Companies (89pts), Power Generation & Distribution (80pts), Engineering (65pts), and Food (60pts). Whereas, sectors which contributed positively were Chemicals (70pts), Fertilizer (43pts), Inv. Banks (20pts), Cable & Electrical Goods (5pts), and Real Estate Investment Trust (2pts).

Scrip-wise negative contributors were LUCK (145pts), HUBC (60pts), TRG (48pts), DGKC (46pts) and OGDC (45pts). Meanwhile, scrip-wise negative contribution came from EPCL (55pts), SYS (26pts), EFERT (24pts), MEBL (22pts), and MCB (19pts).

Meanwhile, the KSE All Share market cap decreased by Rs125.5 billion or 1.65% over the week, being recorded at Rs7.47 trillion as compared to a market cap of Rs7.6tr recorded last week.

Flow-wise, foreigners were the net sellers during the week, offloading stocks worth $3.78mn compared to a net sale of $15.5mn last week, largely backed by foreign corporations amounting to $5.58mn. Sector-wise, major selling was witnessed in Banks ($3.8mn) and Cement ($1.4mn).

On the local side, the majority of the buying was reported by Individuals, Banks amounting to $14.8mn, and $4.7mn, respectively. However, Mutual Funds and Insurance Companies stood on the other side with net selling of $12.4mn and $4.6mn respectively.

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