Equity:
The KSE-100 Index has added over a thousand points each week for the last 3 weeks and has closed positive in 8 of the last 10 weeks. During the departed week, the benchmark index gained 1,140 points and closed 37,330-mark i.e. nearly 3.15% percent higher than the closing of the previous week.
The benchmark index was running on a successful 13-day long positive streak, which came to an abrupt end after the marked closed in consolidation post losing 66 points on Wednesday.
According to a research report by Arif Habib Limited, the stock markets were lifted by the Capital injection from local investors as equities were being viewed as the preferred asset class, Government’s plan to build low cost subsidized houses which rejuvenated investors’ interest in the cement sector, State Bank of Pakistan’s decision to ask all commercial banks to allocate five percent of their portfolio to the construction sector, and the inauguration of construction works at Diamer Bhasha Dam by the Prime Minister, which again, is expected to increase demand for Cement and Steel.
Cement emerged as the best performing sector during the week, as it contributed about 214 points to the benchmark index, followed by sectors such as E&P, and Automobile, which combinedly contributed 287 points to the index.
Company-wise, the scrips of LUCK, POL, DAWH, PPL, and INDU were the most desirable ones as they contributed 85, 78, 77, 75, and 63 points, respectively.
Figures released by NCCPL showed that foreign investors dumped USD 27.3 million worth of stocks during the week with foreign corporates doing the bulk of the selling.
On the local front, Individual Investors picked up USD 15.9 million worth of stocks, followed by USD 14 million worth of stocks purchased by Insurance Companies.
|
Date |
Points Gained |
Index Return |
|---|---|---|
|
June 26, 2020 |
500.54 |
1.50% |
|
July 03, 2020 |
1,111.89 |
3.28% |
|
July 10, 2020 |
1,139.03 |
3.25% |
|
July 17, 2020 |
1,140.44 |
3.15% |
Forex:
SCRA outflows and other payments kept PKR under pressure as the local currency lost 0.58% or 98 paisa against the USD during the week.
PKR started on a weak note, losing 27 paisa in the first session before showing some stability in the next two sessions before crumbling in the last two, losing a combined 65 paisa in them.
However, 10-day volatility decreased from 4.77% to 2.35% as the dollar traded in a range of 1 Rupee, hitting a weekly high (bid) of 167.50 and a low (ask) of 166.50 before closing at 167.3310.
Weekly Reserves data released by the Central Bank showed that it received no significant inflows during the previous week, while those held by the commercial banks increased by 149.20 million.
Money Market:
The central bank intervened 3 times in the money market, injection Rs.70 billion for 3 days on Tuesday, Rs.143 billion for 8 days on Thursday, and Rs.900 billion for 7 Days on Friday.
Yields in the market remained largely unchanged with the exception of the 1-month tenor which showed the highest decrease of 16 basis points.
Cut off yields in the Market Treasury Bill (MTB) for 3, 6 and 12 months decreased by 29, 9 and 25 basis points while the SBP picked up Rs.268.59 billion against the auction target of Rs.100 billion
Similarly, in the PIB (Floating Rate) auction conducted on the same day, the SBP picked up Rs.272.815 billion for 3, 5, and 10 years against an auction target of Rs.120 billion.
PIB Floating Rate and GOP Ijara Sukuk (Variable & Fixed Rate) are scheduled for this week.
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