Weekly Market Roundup

January 26, 2020 (MLN): The KSE-100 index lost nearly 534 points during the week, and closed at 42,633 level, i.e. lower by 1.24 percent in comparison to the previous week's closing of 43,167 points.

According to a research report by Arif Habib Limited, the trading remained dismal over the week on the back of hike in gas prices proposed by OGRA, as well as the decision taken by Government to eliminate GIDC on Fertilizer sector in a quest to reduce prices.  

During the week, Fertilizer sector snatched around 180 points from the benchmark index, followed by Commercial Banks and E&P companies as the took away 87 points and 70 points respectively.  

Company wise, the scrips of ENGRO (-153), OGDC (-93), EFERT (-80), PAKT (-53) AND HMB (-36) emerged as the losers, while those of FFC (+56), MARI (+48) and COLG (+27) captured the highest gains.

Likewise, the All-Share Market Index declined by $812.4 million, before settling at $51.4 billion.

Foreign investors were the net buyers during the week, with the total purchase of securities being recorded at $4.8 million. Amongst these investors, Foreign Corporates emerged as the largest group of buyers as they purchased securities worth $5.1 million.

On the contrary, local investors were the net sellers, with Individual Investors and Broker Propriety Trading making the largest sale at $19.3 million and $3.05 million respectively.

Forex Roundup

PKR remained relatively unchanged from the previous week, gaining 0.13 paisa to close at 154.5486.

The dollar moved in a range of 21 paisas during the week touching a high (bid) of 154.75 and a low (ask) of 154.54 while the 10 day volatility witnessed a decline from 0.84 percent last week to 0.62 percent.

In the open market, the dollar was quoted at 154.50/155.20.

Fixed Income

Price trend in the secondary market were mixed with 3 and 12 month MTB yields coming down by a fraction while 6 month remained unchanged.

PIB yields increased across the board by up to 10 bps for some tenors as the market consensus built around the SBP holding the policy rate unchanged in its upcoming meeting.

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