September 4, 2022 (MLN): This week, the benchmark KSE100 index closed negative at the 42,309 level, losing 282 points WoW due to increased political noise and unprecedented flood which slowed down economic activities and built pressure on the fiscal, external, and monetary sectors, which affected the stock market recovery during the week.
The week commenced on a negative note amid concerns over the flood crisis and its overall impact on the economy. However, the market soon recovered following the approval and subsequent disbursement of a $1.17bn tranche from the IMF to Pakistan. As a result, Pak Rupee strengthened against the greenback, closing the week at PKR 218.98, up by PKR 1.68 or 0.8% WoW, a note by Arif Habib Ltd said.
The bullish trend was short-lived as the announcement of the inflation numbers for the month of Aug’22 (a 47-year high), changed the overall sentiment of the market. In addition, trade numbers released during the week too dampened the overall sentiment as it posted a 29% MoM jump in Aug’22.
In USD terms, the index recovered by 0.1% this week as PKR witnessed a recovery against the greenback.
Overall, out of the total 5 sessions, the bourse witnessed 3 sessions in favour of bears while 2 sessions were in favour of bulls. The KSE-100 index oscillated between high and low of 43,052 and 41,828 levels, respectively, before settling the week at 42,309 levels.
From the sector-specific lens, Banks, Oil & Gas Exploration, Automobile, Miscellaneous, and Textile Composite during the week took away 118, 90, 61, 40, and 31 points from the bourse respectively.
Contrary to that, Cement and Leather & Tanneries collectively added 135 points to the index.
Scrip-wise, HBL, TRG, PSEL, ENGRO, and POL were the worst-performing stocks during the week as they snatched 73, 47, 41, 39, and 36 points from the index respectively. Whereas SYS, EFERT, KOHC, FABL, and SRVI collectively added 212 points to the index.
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Meanwhile, the KSE All Share market cap decreased by Rs87.5 billion or 1.23% over the week, being recorded at Rs7 trillion as compared to a market cap of Rs7.1tr recorded last week.
Flow-wise, foreigners emerged as net sellers during the week, offloading stocks worth $0.74mn compared to a net sell of $1.9mn last week. Major selling was witnessed in Commercial Banks ($1.8mn) and Power ($0.8mn).
On the local side, the majority of the buying was reported by banks ($3mn) followed by Individuals ($2.4mn) and NBFC ($0.9mn). However, Insurance Companies and Mutual Funds stood on the other side with net selling of $7.4mn and $0.03mn respectively.
Copyright Mettis Link News
Posted on:2022-09-04T14:49:25+05:00
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