August 8, 2021 (MLN): The benchmark KSE-100 index of the Pakistan Stock Exchange settled the first week of the month on a positive note at a level of around 47,490, posting a gain of 435 points over last week’s closing.
The index showed a mixed trend but remained largely in the green territory primarily induced by the ease in Consumer Price Index (CPI) that settled at 8.40% YoY in July coupled with an improvement in trade deficit by 15% MoM in July as per the Pakistan Bureau of Statistics (PBS). Moreover, Pakistan’s reserves are expected to increase significantly by USD2.8bn due to the new SDP allocation from the International Monetary Fund (IMF) that also impacted investors’ trading activity during the week.
With the revenue collection of PkR413bn by FBR in July’21 that exceeded the target by 21% and progress on implementing new power subsidy mechanism, igniting hopes of a successful IMF review in Sep’21 also kept investors sentiment buoyant.
According to the market note by AKD securities, the investors’ sentiments improved as a result of, positive news flows on the Foreign Policy front such as high-ranking officials in the US Govt acknowledged the important role of Pakistan in ensuring stability in Afghanistan, and Saudi Arabia inviting PM Imran Khan to Middle East Climate Summit to be held in Oct’21.
Commercial Banks emerged as the top gainer during the week as it added 193 points to the index. This was followed by Oil & Gas Marketing Companies (+52pts), Chemicals (+52pts), Textile Composite (+44pts) and Technology & Communication (+30).
Scrip-wise positive contributors were MEBL (+84pts), MCB (+43pts), HBL (+41pts), EPCL (+37pts) and HASCOL (+30pts).
Meanwhile, the KSE All Share Market Cap increased by Rs98 billion or 1.19% over the week, being recorded at Rs8.34 trillion as compared to a Market Cap of Rs8.24tn recorded last week.
Flow-wise, foreigners became net buyers during the week as they purchased a net USD3.1mn worth of stocks whereby Overseas Pakistanis doing the bulk of buying amounting to a net USD1.74mn.
On the local side, major buying was reported by Individuals and Companies with USD7.56mn and USD2.71mn respectively. Other significant transactions included USD10.55mn and USD6.08mn worth of stocks sold by Mutual Funds and Insurance Companies respectively.
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