January 27, 2024 (MLN): The benchmark KSE-100 index closed this week at 63,813 showing an increase of 531 points or 0.84%.
Meanwhile, the Pakistani Rupee recorded a marginal gain of 0.11% WoW.
In USD terms, the KSE-100 index gained 0.95% this week.
After a volatile week of trading in a range of 2,074 points, between high and low of 65,214 and 63,140 levels, respectively, KSE-100 settled at 63,813.
The market turnover saw a rise during the week, with an average traded volume of 248 million shares worth Rs16.97 billion, marking an increase of 12.68% WoW in the number of shares and 67.35% WoW in traded value.
Moreover, the overall PSX average traded volume (All-Share) was recorded at 415m shares worth Rs20.27bn, marking an increase of 6.81% WoW in the number of shares while an increase of 47.30% WoW in traded value.
Top Index Movers
Throughout the week, newsflow regarding energy sector circular debt remained in the limelight.
Moreover, the government executed Petroleum Concession Agreements and Exploration Licences for 8 blocks with 4 companies, stipulating a minimum investment of over $33.3 million to be carried out by the Exploration and Production (E&P) companies in these blocks for prospecting within three years.
Accordingly, the Oil & Gas Exploration Companies emerged as the top-performing sector, as it added 319 points to the index.
This was followed by Commercial Banks, Fertilizer, Cement, and Leather & Tanneries as they kept the index in positive territory by adding 273, 115, 30, and 25 points, respectively.
Contrary to that, Technology & Communication, Power Generation & Distribution, Miscellaneous, Automobile Assembler, and Paper & Board remained red, as they took away 124, 63, 33, 28, and 13 points from the index.
Scrip-wise, OGDC, EFERT, BAHL, MEBL, and HMB were the best-performing stocks during the week as they added 336, 131, 114, 75, and 63 points to the index respectively.
Whereas, PPL, SYS, FFC, HUBC, and PSO collectively took away 275 points from the index.
During the week, the government raised about Rs566bn from three auctions at lower yields, reflecting the market’s anticipation of a downward trend in interest rates.
The 6-month KIBOR dropped to its lowest level since March 02, 2023.
FIPI/LIPI
Foreign investors offloaded a significant amount of $22.71m during the week. They were particularly active in the commercial banks sector, recording net sales of $6.72m , followed by the fertilizer sector with a sell-off of $4.54m.
On the local front, Insurance Companies were the dominant buyers, with a net investment of $9.58m.
They allocated the majority of their capital, $6.28m, to Fertilizer, while divesting from the Oil and Gas Marketing Companies sector, amounting to $2.08m in sales.
On the other hand, the leading sellers domestically were other organizations, with a net sale of $3.35m.
To note, the local stock market has been on a bullish streak amid hopes of improved economic conditions following the inflows from IMF and friendly countries, relatively stable currency amid government-backed administrative efforts, and a possible slash in the interest rates.
The KSE-100 gained 22,031 points, equivalent to 54.5% in the calendar year 2023. While in the current fiscal year, it has rallied 22,360 points or 53.94%.
The index is the best-performing gauge in dollar terms since the end of June among more than 90 equity indexes tracked by Bloomberg.
For the next week, investors will be closely monitoring the Monetary Policy Committee meeting scheduled for Monday, where the central bank is widely anticipated to keep the policy rate unchanged. Additionally, the inflation and trade figures for January will also provide insights into the economic situation of the country.
Simultaneously, attention will be directed towards the February 08 elections. Historical data suggests that the runup to the elections may be a good time to bet on a continued move higher in the country’s stocks.
Copyright Mettis Link News
Posted on: 2024-01-27T08:00:00+05:00
