May 7, 2021 (MLN): After receding for two successive weeks, the benchmark KSE-100 index of Pakistan Stock Exchange (PSX) reversed its trend, as it gained 912 points or 2.1%WoW to close at 45,175 level this week.
Over the week, market saw one bearish and three bullish sessions. The week started on a negative note amid higher inflation numbers coupled with severe lockdown measures including the closure of commercial activities which spiked investors’ anxieties. Nevertheless, the following three sessions staged a strong recovery that ushered the index to close the week in green. The upturn in the subsequent sessions is mainly attributable to the approval by ECC for the payment of the first installment to IPPs, a decline in daily Covid-19 cases, record-breaking 80% growth in quarterly earnings of the companies listed in the KSE-100 index, and reiteration of pro-growth policies by the new Finance Minister.
In addition to this, the other important events which set the direction of the bourse during the week including the increase in FBR’s tax collection by Rs34bn in April, a 24.3% YoY increase in Cement dispatches, and an uptick in OMCs sales by 57% YoY during April’21.
Sector-wise, Commercial Banks appeared as the top gainer as it added the most points in the index (+239pts) on the back of impressive quarterly results for March’21.
Cement remained the second sector that propped the index up as it contributed 138pts to the 100-index on account of excellent profitability during 3QFY21. The Power Generation & Distribution Companies ranked third in major buying as it added 113 points to the index, this was followed by Fertilizer and Food & Personal Care products as they contributed 112pts and 62pts, respectively.
On the other hand, sectors that contributed negatively include Textile Composite (-5pts), Chemical (-4pts), Leather & Tanneries (-3pts), Close-End Mutual Fund (-2pts) and Automobile Parts & Accessories (-1pts).
Scrip-wise major gainers were LUCK (+106pts), HUBC (+80pts), HBL (+68pts), UNITY (+63pts) and MCB (+56pts) while negative contributors included TRG (-31pts), MARI (-14pts), FML(-13pts), NESTLE (-7pts) and AGIL (-4pts).
Meanwhile, the KSE All Share Market Cap increased by Rs90billion or 1.17% over the week, being recorded at Rs7.8trillion as compared to a Market Cap of Rs.7.7trillion recorded last week.
Figures released by NCCPL showed that foreigners appeared as net buyers during the week as they purchased a net $1.04million worth of stocks during the week with foreign corporates doing the bulk of selling amounting to $0.946million.
On the domestic front, investors remained net sellers with major selling was reported by Insurance Companies ($3.3million), Banks/Dfi ($3.13 million), and Individual Investors ($2.6 million). While Other Organizations became net buyer with the amount of $7.58 million.
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