June 12, 2022 (MLN): After witnessing seven straight weeks of loss, local equities closed the departed week on a positive note by gaining 700 points or 1.7% WoW to settle at the 42,015 points level.
However, in terms of USD, the index declined by 0.53% from last week as the Pakistani rupee (PKR) has shed over 4 rupees in five consecutive sessions to settle the week at PKR 202.35, compared to PKR 197.92 per USD the previous week.
The market remained range-bound as budget FY23 was due this week and it was anticipated that meeting the IMFs obligations; i.e., increasing fuel prices, removing subsidies and progressive taxation, in the budget FY23 to help Pakistan obtain the bailout package soon. It is expected the country to receive the IMF funds next week, meanwhile, South Korea will provide a USD1.0bn soft loan to Pakistan which will ease the external account pressure and reduce uncertainty in the market, a note by Spectrum Securities said.
The week started positively because of the IMF meetings which exhibited advancement in the negotiation. However, the decline in forex reserves to USD9.2 bn, rising inflation because of an increase in energy prices and gas/electricity supply problems for the industry; mainly textile, cease the bourse’s recovery. Nonetheless, the upcoming sessions may pose a significant recovery in arriving foreign funds and a clear path for investors since the release of budget FY23, it added.
The bourse witnessed 3 sessions in favour of bull while the 2 sessions were in favour of bear. The KSE-100 index oscillated between high and low of 42,076 & 41,032 levels, respectively, before settling the week at 42,015 levels.
From the sector-specific lens, Oil & Gas Exploration companies, Cement, Power Generation & Distribution companies, Technology, and Chemical kept the index in green territory as they added 197, 113, 97, 79, and 78 points to the index respectively.
Contrary to that, Banks, Tobacco, Automobile, Insurance, and Leather & Tanneries during the week collectively took away 133 points from the bourse.
Scrip-wise, LUCK, HUBC, PPL, OGDC, and POL were the best-performing stocks during the week as they added 88, 75, 70, 63, and 52 points to the index respectively. Whereas MEBL, HBL, INDU, PAKT, and CHCC collectively snatched 107 points from the index.
Meanwhile, the KSE All Share market cap increased by Rs90vbillion or 1.3% over the week, being recorded at Rs7 trillion as compared to a market cap of Rs6.9tr recorded last week.
Flow-wise, foreigners were the net sellers during the week, offloading stocks worth $7mn compared to a net sell of $1.5mn last week. Sector-wise, the major selling was observed in Other Sectors ($3.14mn), Banks ($2.26mn), and Cement ($1.61mn), while a net buying was seen in Food ($0.13mn).
On the local side, the majority of the buying was reported by Companies, and Other Organization amounting to $8.7mn and $2.6mn, respectively. However, Broker and Mutual Funds stood on the other side with net selling of $2.3mn and $1.9mn respectively.
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