June 6, 2021 (MLN): Stocks reached new highs over the week as the index marched past the 48,000 level after a 4-year period to close at 48,212 level, i.e., up by 1,085 points or 2.3% WoW.
The index started the week on a bullish note as the central bank kept the interest rate unchanged at 7% for the next two months.
The market was further fueled by the expectation of favorable budgetary measures for the capital market, and for economic growth under the FY22 budget. Likewise, tax revenue collection hit a historic high of around PKR 4.143trn during 11MFY21 further fueling the market.
Additionally, inflation clocked in at 10.87% lower than expected. Oil prices (Arab Light) during the week increased by 2% WoW, settling at USD 70.87/bbl, which helped fuel the performance of E&P scrips, a report by Arif Habib Limited cited.
Sector-wise positive contributions came from, Oil & Gas Marketing Companies (126 pts), Cement (120 pts), Oil & Gas Exploration Companies (115 pts), Pharmaceuticals (73 pts), and Power Generation & Distribution Companies (71 pts). Meanwhile, the sectors that contributed negatively include Synthetic & Rayon (-3 pts) and Real Estate Investment Trust (-1 pts).
Scrip-wise major gainers were PSO (56 pts), PPL (49 pts), KAPCO (45 pts), SEARL (44 pts), and DGKC (43 pts). While negative contributors included BAHL (-23 pts), MTL (-15 pts), KEL (-11 pts), HBL (-7 pts) and FFC (-6 pts).
Meanwhile, the KSE All Share Market Cap increased by Rs226.19billion or 2.78% over the week, being recorded at Rs8.357trillion as compared to a Market Cap of Rs8.13trillion recorded last week.
Figures released by NCCPL showed that foreigners emerged as net sellers this week, as they sold a net $0.18mn worth of stocks against a net purchase of $2.1mn last week. The bulk of selling amounting to $3.86mn was done by Foreign Corporates.
On the domestic front, investors remained net buyers with major selling was reported by Individual Investors ($11.05mn), Mutual Funds ($4.6mn), and Other organizations ($3.99 mn).
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