Weekly Market Roundup

September 24, 2022 (MLN): This week, benchmark KSE-100 index lost 1,059 points and closed at 40,620 points level, amid renewed weakness in the PKR against the USD and economic and political concerns.

The market opened on positive note this week given Saudi Fund of $3bn was rolled over till next year while IMF assured support for flood relief and reconstruction. However, the momentum could not sustain owed to bleeding SBP foreign reserves (falling by $278mn WoW), which led the Pak Rupee to further depreciate against greenback, closing at 239.65 towards end of the week, a note by Arif Habib Limited said.

In addition to this, the FDI during 2MFY23 plummeted by 26% YoY. Furthermore, the LSM output reported a 1.4% YoY and 16.5% MoM fall in Jul’22. Meanwhile, the investors opted for value buying amid the expectation of receiving $1.5bn, $0.5bn and $0.2bn from ADB, Asian Infrastructure Investment Bank, and the Japanese Government, respectively.

Moreover, the World Bank is also expected to give flood-related support of $1.7bn. Alongside this, the current account reduced by 54% YoY in Aug’22, which further cushioned the overall decline in the index during the week.

In USD terms, the index plummeted by 3.69% this week.

Overall, all the 5 sessions were closed in favour of bears this week. The KSE-100 index oscillated between high and low of 41,897 and 40,419 levels, respectively, before settling the week at 40,620 levels.

From the sector-specific lens, Oil & Gas Exploration Companies, Banks, Cement, Power Generation & Distribution companies, and Oil & Gas Marketing Companies kept the index in red territory as they took away 250, 246, 123, 74, and 73 points from the index respectively.

Contrary to that, Tobacco and Automobile Assembler and during the week collectively added 17 points to the bourse.

Scrip-wise, PPL, OGDC, LUCK, MEBL, and POL were the worst-performing stocks during the week as they snatched117, 84, 83, 66, and 51 points from the index respectively. Whereas, TRG, PAKT, UNITY, FFC, and IBFL collectively added 54 points to the index.

Meanwhile, the KSE All Share market cap decreased by Rs164.8 billion or 2.4% over the week, being recorded at Rs6.69 trillion as compared to a market cap of Rs6.85tr recorded last week.

Flow-wise, foreigners emerged as net buyers during the week, purchasing stocks worth $5mn compared to a net buy of $13.8mn last week. Major selling was witnessed in Technology ($6.6mn) and E&P ($0.5mn).

On the local side, the majority of the buying was reported by Individuals ($1.5mn) followed by Banks ($1.4mn). However, Insurance Companies, Mutual Funds, and Companies stood on the other side with net selling of $3.3mn, $2.4mn, and $2.1mn respectively.

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