July 17, 2022 (MLN): This week, the local bourse gained 731 points or up by 1.8% WoW and closed at 42,075 index levels. Volumes also witnessed a strong rebound with 178 million shares traded during the week, showing an increase of 97% on a WoW basis.
The week began on a negative note, after a long break of Eid holidays, largely due to a hike in the policy rate by 125 bps. However, the strong recovery in the bourse was led by positive development on the IMF front as the government reached a staff-level agreement with the Fund, which would enable the disbursement of the $1.2bn under the EFF subject to the approval of the IMF board.
Moreover, IMF also highlighted that in order to support program implementation and meet higher financing needs in FY23, the Board will consider an extension of the EFF until Jun’23 and an augmentation of the loan facility by $1bn which will bring total access to $7bn.
The positive sentiment was further supported by the announcement of a reduction in petrol prices by the government as Brent Crude touched a recent low of $94.78 per barrel, before closing the week at above $100 per barrel.
In USD terms, the index recovered by just 0.3% as the Pakistani rupee (PKR) lost three rupees against the US dollar in three consecutive sessions to settle the week’s trade at PKR 210.95 per USD.
Overall, out of the total 3 sessions, the bourse witnessed 2 sessions in favour of bull while 1 session was in favour of bear. The KSE-100 index oscillated between high and low of 42,499 and 41,224 levels, respectively, before settling the week at 42,075 levels.
From the sector-specific lens, Banks, Cement, Technology, Oil & Gas Exploration Companies, and Oil & Gas Marketing Companies kept the index in green territory as they added 194, 101, 93, 82, and 79 points to the index respectively.
Contrary to that, Automobile, Pharmaceuticals, Sugar & Allied Industries, Leather & Tanneries, and Textile Spinning during the week collectively took away 41 points from the bourse.
Scrip-wise, MEBL, SYS, PSO, LUCK, and PPL were the best-performing stocks during the week as they added 84, 70, 53, 45, and 39 points to the index respectively. Whereas COLG, ABOT, MTL, POL, and EFUG collectively snatched 62 points from the index.
Meanwhile, the KSE All Share market cap increased by Rs102.9 billion or 1.48% over the week, being recorded at Rs7trillion as compared to a market cap of Rs6.94tr recorded last week.
Flow-wise, foreigners emerged as net buyers during the week, purchasing stocks worth $1.4mn compared to a net buy of $1.52mn last week. Sector-wise, the major selling was observed in all other sectors ($0.43mn) and Banks ($.36bn).
On the local side, the majority of the selling was reported by Banks and Insurance Companies amounting to $1.42mn and $1.13mn, respectively. However, Individuals stood on the other side with a net buying of $1.7mn.
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