Weekly Market Roundup

January 10, 2021 (MLN): The KSE-100 index delivered yet another exceptional performance as it gained another 1,219 points during the departed week and closed 45,654-mark i.e. nearly 2.74% percent higher than the closing of the previous week.

According to a report by Spectrum Securities, ‘major events that impacted the bourse during the week include developments in resolution of circular debt, surge in global oil prices amid production cut by Saudi Arabia for Feb and Mar, global rally in equity markets, rise in OMCs sales, exemption of customs duty on imports of textile raw material, sit-ins protest by the Hazara Community throughout the country, and easing in inflation to 8% in December’.

The benchmark index was lifted by the performance of Commercial Banks, which contributed around 561 points to it. The performance of this sector was driven by the expectation of increase in profits for the period ended December 2020. This was followed by E&P Sector, which contributed 153 points owing to the decision by Saudi Arabia to continue production cuts in 1QFY21 which resulted in an increase in the prices of WTI crude oil. Fertilizer sector added nearly 136 points to the benchmark index due to increase in sale price as well as improved offtake during the month of December as compared to the previous month.

Company-wise, the scrips of UBL, HBL, MEBL, DAWH and MCB closed the week in the green zone, as they gained 154, 117, 90, 88, and 80 points, respectively.

Meanwhile, the KSE All Share Market Cap increased by $1 billion or 1.98% over the week, being recorded at $51.89 billion as compared to a Market Cap of $50.88 billion recorded last week.

Figures released by NCCPL showed that foreign investors purchased USD 3.4 million worth of stocks during the week with overseas Pakistanis doing the bulk of the purchasing @ USD 1.78 million. On the local front, Insurance companies and Banks/DFIs sold USD 8.1 million and USD 8.06 million worth of stocks, respectively. Excessive selling was witnessed locally as well as Mutual Funds sold stocks worth USD 19.5 million.

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Posted on: 2021-01-10T12:42:00+05:00

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