Weekly Market Roundup

August 30, 2020 (MLN): Despite rollover week, the KSE-100 index had an upward move by posting a gain of 3.62% WoW to close at 41,056 levels.

According to the report by JS Global, the market received an adrenaline rush after confidence expressed by local and global fund managers over the outlook of the local bourse in electronic media. Average investor participation for the week however slipped over thin volumes at the last trading day of the week. Traded volumes declined by 0.3% WoW, while traded value witnessed a5% WoW drop.

Another report by Spectrum Securities highlighted that low interest rates, ample liquidity, encouraging economic numbers, speedy development on infrastructure projects and easing lockdown are encouraging factors fueling the rally in the stock market.

Sector-wise, Commercial Banks emerged as the best performing sector during the week, as it contributed about 300 points to the benchmark index, followed by Technology and Communication which added 193 points to the index. The other sectors that led the rally were Chemical, Power Generation and Distribution Companies and Cement as they collectively contributed 353 points to the KSE-100 index.

Company-wise, the scrips of HBL, TRG, COLG, UBL and HUBC were the most desirable ones as they contributed 181, 129, 103, 90 and 88 points, respectively.

Figures released by NCCPL showed that foreign investors dumped net USD 802, 032 worth of stocks during the week with foreign corporates doing the bulk of the selling.

On the local front, Mutual Funds picked up USD 18.4 million worth of stocks, followed by USD 1.47 million and USD 1 million worth of stocks purchased by local Companies and Other organizations respectively.

Forex:

PKR rebounded in the final two days of the week gaining Rs.1.78 against the USD after hovering around its all-time low for much of the week.

The Dollar hit its all-time high of 168.4353 on Wednesday and traded within a range of Rs.1.81 touching a high of 168.50(Bid) and low (ask) of 166.70 during the week before closing at 166.50.

10 Day volatility increased from 2.04% to 3.98%.

Data released by SBP showed the Current Account Balance in surplus by USD 424 million for the month of July, while Pakistan’s Forex Reserves increased by USD 66 million to USD 19.722 billion.

Money Market:

Cut off Yields in the MTB auction increased by 16 and 15 basis points for 3 and 12 months while the cut off for 6 months remained unchanged.

In the secondary market, yields were up by 18, 12 and 11 basis points for 3, 6 and 12 months while the longer-term yields were up by 4, 5, and 10 basis points for 3, 5 and 10 years.

The SBP extended the maturity of the Open Market Operation conducted last week by 4 days till Aug 31, 2020.   

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