Weekly Market Roundup

July 12, 2020 (MLN): The KSE-100 index gained around 1,139 points during the departed week and closed 36,190-mark i.e. nearly 3.25% percent higher than the closing of the previous week.

According to Arif Habib Limited, the market commenced on a positive note due to the flattening of the COVID-19 curve along with the higher recovery rate of patients. Moreover, an increase in SBP’s foreign exchange reserves, reduction in mark-up on Long Term Financing Facility and Temporary Economic Refinance Facility helped in boosting market sentiments.

Commercial Banks emerged as the best performing sector during the week, as it contributed about 494 points to the benchmark index, followed by sectors such as Cement, E&P, and Automobile, which combinedly contributed 427 points to the index.

Company-wise, the scrips of HBL, PPL, UBL, NBP, and INDU were the most desirable ones as they contributed 141, 70, 65, 46, and 43 points, respectively.

Figures released by NCCPL showed that foreign investors dumped USD 9.45 million worth of stocks during the week with foreign corporates doing the bulk of the selling.

On the local front, Insurance Companies picked up USD 4.5 million worth of stocks, followed by USD 2.7 million worth of stocks purchased by Local Companies.

Forex:

PKR, which had ended its 7-week run of depreciation against the dollar last week, resumed losing in value as the inflows received by the SBP failed to provide any reprieve to the struggling currency.

While the Rupee closed just 14 paisa or 0.09 percent lower it had depreciated by 75 pasia or 0.45% in the first two days of trading before recovering some of the losses in the remaining sessions of the week.

The dollar traded in a range of 85 paisa, hitting weekly high (bid) of 167 and a low (offer) of 166.15 before closing at 166.3525.

10 Day volatility declined slightly from 5.61 percent to 4.77 percent.

However, some solace can be taken from the fact that PKR has appreciated by Rs.1.70 or 1 percent since the start of FY21.

Money Market:

In the absence of any auctions, the yields in the secondary market displayed a mixed trend with 6-month yields decreasing by 6 basis points while 3 and 12-month yields came down by 17 bps.

However, longer-term yields for 3, 5, and 10 years increased by 20, 6, and 7 basis points.

There is an MTB and PIB (Floating Rate) auction scheduled for Wednesday, July 15, 2020.

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