April 11, 2021 (MLN): The benchmark KSE-100 index recuperated 885 points during the departed week or up by 2% WoW as the index closed at 45,186 points.
Stronger growth forecasts by IMF (FY22: 4.0%), acted as a catalyst to change investor sentiments followed by US$2.5bn inflows from Eurobond. The rising value of PKR and expectations of strong corporate profitability in the upcoming result season also supported the index. Moreover, news regarding the extension of the Debt Servicing Suspension Initiative (DSSI) till Dec’21 further fueled investors’ sentiments.
Cement emerged as the top gainer during the week as it added 280 points to the index on the expectation of stronger results amid higher retention prices during 3QFY21. This was followed by Technology & Communication (+256pts), Textile Composite (+77pts), engineering (+58pts) and Power Generation & Distribution Companies (+52pts). Scrip-wise positive contributors were TRG (+251pts), LUCK (+124pts), DGKC (+45pts), HUBC (+34pts) and NRL (+33pts).
Meanwhile, the KSE All Share Market Cap increased by Rs.92.17 billion or 1.18% over the week, being recorded at Rs. 7.92 trillion as compared to a Market Cap of Rs.7.83 trillion recorded last week.
Figures released by NCCPL showed that foreigners remained net sellers during the week as they sold net US$9.5 million worth of stocks during the week with foreign corporates doing the bulk of selling amounting to US$13.56 million.
On the domestic front, major buying was reported by Banks/ DFIs (US$3.15 million and Companies (US$2.5 million). Other significant transactions included US$2.4 million and US$1.1 million worth of stocks bought by Mutual Funds and Brokers respectively.
