Weekly Market Roundup

December 09, 2023 (MLN): During the week, the benchmark KSE-100 index recorded highest ever weekly gain in point terms, surging by 4,532.38 points or 7.35% to close at an all-time high of 66,223.

The local stock market, which had been on a bullish rally since the country secured a $3 billion deal with the International Monetary Fund (IMF), was further propelled this week amid clarity on the next meeting date for the final approval of the disbursement of next $700 million tranche from the loan program.

The index has recorded a tenth consecutive weekly gain, the longest streak since 2021.

Moreover, the Pakistani Rupee (PKR) continued to show strength during the week, extending its winning streak to fourth consecutive week.

In USD terms, the index gained a significant 7.76% this week, maintaining its position among the top performing markets worldwide.

Throughout the week, KSE-100 oscillated between high and low of 66,273.23 and 62,061.57 levels, respectively, before settling the week at 66,223.63.

The average daily traded volume (All-Share) during the week rose 64% to 1.03bn, as against 625.59m in the previous week.

Top Index Movers

From the sector-specific lens, commercial banks took the lead by contributing 1,704 points to the index.

This was followed by Oil & Gas Exploration Companies, Fertilizer, Oil & Gas Marketing companies, and Power Generation & Distribution as they kept the index in positive territory by adding 997, 339, 333, and 166 points, respectively.

Contrary to that, Automobile assembler, Cement, Synthetic & Rayon, Textile Spinning, and Woollen during the week collectively took away 39 points from the bourse.

Scrip-wise, PPL, HBL, OGDC, MARI, and BAHL were the best-performing stocks during the week as they added 388, 320, 294, 282, and 271 points to the index respectively.

Whereas, LUCK, MTL, SYS, IBFL, and FATIMA collectively snatched 115 points from the index.

FIPI/LIPI

Flow-wise, the dominant buyers during the week were foreign corporates, with a significant net investment of $10.62m.

They allocated the majority of their capital, $3.68m, to Commercial banks, while divesting from the Technology and Communication sector, amounting to $1.06m in sales.

Foreign investors have remained net buyers for the fifth consecutive week.

On the other hand, the leading sellers were Banks/DFI, with a net sale of $6.87m.

Their most substantial sales activity was in the commercial banks, amounting to $1.92m.

To note, the local stock market has been on a bullish streak amid hopes of improved economic conditions following the expected inflows from IMF and friendly countries, relatively stable currency amid government-backed administrative efforts, and a possible slash in the interest rates.

Analysts expect this trend to continue in 2024 owing to robust earnings growth, attractive valuation, and steady economic growth.

The KSE-100 has gained 24,771 points or 59.76% during the fiscal year, whereas the ongoing calendar year has witnessed a cumulative increase of 25,803 points, equivalent to 63.84%.

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