August 15, 2021 (MLN): Lack of positive triggers led to another lackluster week for domestic equities as the benchmark KSE-100 index witnessed a loss of 320pts WoW at 47,170 levels.
The market commenced the week on a negative note given mounting concerns over the current account. Moreover, the recent depreciation of the Pak Rupee against USD (closing at PKR 164) kept the momentum weak. During the week, the market bounced back and cushioned the dip amid robust financial results of some scrips, massive incentives approved by the Federal Govt. for the technology and telecom sector, robust remittances (USD 2.7bn in Jul’21), and 114% YoY surge in automobile sales in Jul’21, a report by Arif Habib Limited cited.
The average daily volume of the KSE-100 index dropped by 29% WoW to 105mn shares as compared to 148mn shares in the previous week. Moreover, due to demand concern given rising delta cases and Chinese targeted lockdown along with strict travel restrictions, international oil prices took a dip whereas WTI crude oil prices bottomed at $66 during the week.
From a sector-specific lens, negative contributions came from Cement (-112pts), Oil & Gas Marketing Companies (-67pts), Oil & Gas Exploration (-52pts), Power Generation & Distribution (-45pts), and Chemical (-29pts). Whereas the sectors that contributed positively included Technology & Communication (47pts) and Food & Personal Care Products (37pts).
Scrip-wise laggards were LUCK (-43pts), PPL (-32pts), HUBC (-32pts), PSO (-32pts) and OGDC (-31pts). Meanwhile, contribution came from TRG (83pts), MEBL
(46pts), FCEPL (44pts), PSEL (29pts), and UBL (27pts).
Meanwhile, the KSE All Share Market Cap decreased by Rs82.9 billion or 0.99% over the week, being recorded at Rs8.26 trillion as compared to a Market Cap of Rs8.34tn recorded last week.
Flow-wise, foreign investors continued to be net buyers with an inflow of $3.95mn against a net buy of $3.1mn
last week, with foreign corporates doing the bulk of buying amounting to a net $3.34mn.
On the local side, major selling was reported by Insurance Companies ($6.6mn) and Individuals ($3.0mn). Other significant transactions included $2.5mn and $1.2mn worth of stocks purchased by local Companies and Other organizations respectively.
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