June 05, 2022 (MLN): This week, the KSE100 index declined for a seventh straight week, falling 3.6% or 1,547points WoW, and closed at the 41,315 level.
In terms of USD, the index declined by a notable 2.72% from last week.
The market commenced the week on a positive note on hopes of resumption of IMF program as the government removed subsidy partially by increasing fuel prices by Rs30 which was the prerequisite for concluding the IMF tranche.
As a result, Rupee exhibited a recovery against the greenback, closing the week at Rs197.92/USD.
However, a massive rise in inflation pace, rapid depletion of forex reserves, and a continued surge in T-bill yields, all indicated a further hikes in interest rate which dampened investors’ sentiments. Likewise, Moody’s decision to downgrade Pakistan's outlook from stable to negative, citing “heightened external vulnerability” and uncertainty around securing external financing to meet the country's needs was another major reason behind the selling pressure in the PSX.
Moreover, the jump in NSS rate by up to 150bps and the announcement of another Rs30/litre increase in fuel prices instigated panic among the investors.
Overall, the bourse witnessed 2 sessions in favour of bull while the 3 sessions were in favour of bear. The KSE-100 index oscillated between high and low of 43,339 & 41,145 levels, respectively, before settling the week at 41,315 levels.
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From the sector-specific lens, Banks, Cement, Fertilizer, Technology, and Chemical companies kept the index in red territory as they snatched 363, 309, 127, 124, and 93 points from the index respectively.
Scrip-wise, LUCK, HBL, FFC, TRG, and EPCL were the worst-performing stocks during the week as they took away 141, 129, 87, 68, and 55 points from the index respectively. Whereas POL, ABOT, MARI, SCBPL, and COLG collectively added 44 points to the index.
Meanwhile, the KSE All Share market cap decreased by Rs191.6 billion or 2.69% over the week, being recorded at Rs6.9 trillion as compared to a market cap of Rs7.12tr recorded last week.
Flow-wise, foreigners were the net sellers during the week, offloading stocks worth $0.42mn compared to a net sell of $1.5mn last week. Sector-wise, major selling was witnessed in Bank ($4.2mn) and Cement ($0.4mn).
On the local side, the majority of the buying was reported by Individuals and Companies amounting to $5.6mn and $5.5mn, respectively. However, Insurance Companies and Mutual Funds stood on the other side with net selling of $7.7mn and $4.1mn respectively.
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