KARACHI: Sentiment at Pakistan Stock Exchange (PSX) remained bullish during the last week on rebound in Pak Rupee against greenback, strong corporate results and easing political uncertainty in the country.
The market commenced on a positive note last week since the government was able to convince TLP to call off its protest at the capital. The benchmark KSE-100 index gained 1,111 points or 2.4 percent to close at 47,296 points during the week ended on November 5, 2021 compared to 46,185 points a week earlier.
Market capitalization surged to Rs 8.097 trillion, up by 1.8 percent and average daily turnover increased by 113 percent to 429.74 million shares.
The BRIndex100 climbed by 192 points on a week-on-week basis to close at 4,969 points at the end of the last week as against 4,777.23 points a week earlier. Average daily trading volumes stood at 366.4 million shares.
BRIndex30 closed at 22,212.57 points, up by 1,700 points as against 20,512.35 points of the previous week. Average daily turnover at BRIndex30 was 261 million shares.
Weekly review: Investor sentiment remains optimistic at PSX
Analysts at JS said that carrying last week's bullish momentum, the KSE100 Index closed up 2.4 percent WoW. Investor participation also witnessed a return, recording 113 percent WoW growth to a low base last week.
Net foreign selling also expanded, accumulating to $11.1 million. Refinery sector (+15.9 percent WoW) and Technology sector (+12.6 percent WoW) were among key gainers as they rebounded after sluggish performance in the previous weeks while Steel sector (Engineering: +4.7% WoW) was also among the top performers. On the other hand, after a consistent rally, Banking sector (1.0 percent WoW) and Cement sector (0.9 percent WoW) were among the underperformers this week.
The week also saw appreciating PKR against US dollar, closing at (39 days) high of Rs 169.9, while the 3M T-bill cut-off yields rose 25bps to 8.50 percent (125bps above the Policy Rate) in the latest auction.
They said that on the economy's news front, FBR collection for Oct-2021 continued the robust growth trajectory with 33 percent YoY growth. Moreover trade deficit for Oct-2021 clocked in $3.77 billion while CPI for the month was registered at 9.2 percent YoY. On sector's news front, Cement sales for Oct-2021 declined by 9 percent YoY to 5.2 million tons.
According to Topline, major events during the week were 9.2 percent CPI inflation for Oct-21, $3.77 billion trade deficit for Oct-2021, dollar fell below Rs170 as rupee appreciated on the backdrop of $3 billion credit assistance from Saudi Arabia and successful book building of Pakistan Agro Packaging Limited first ever listing on Growth Enterprise Market (GEM) board.
Analysts at Arif Habib Limited said that appreciation of Pak Rupee, substantial reduction in international coal prices (down by 34 percent WoW) and narrowing of trade deficit on a month-on-month basis by 10 percent further strengthened the sentiment.
PM Khan's announcement of Rs120 billion subsidy package on essential food items further kept the momentum robust. Though profit-taking was witnessed briefly in few scrips but the sentiment remained unchanged.
Sector-wise positive contributions came from Technology (490pts), Fertilizer (136pts), Refinery (115pts), OMC's (36pts), and Textile Composite (33pts). Whereas, sectors which contributed negative were Textile Weaving (14pts), and Paper & Board (9pts).
Scrip-wise positive contributors were SYS (241pts), TRG (210pts), MEBL (72pts), NRL (48pts) and FFC (41pts). Meanwhile, scrip-wise negative contribution came from UBL (38pts), LUCK (35pts) and HBL (33pts).
Average volumes clocked-in at 430 million shares (up by 2.4% WoW) while average value traded settled at USD 89 million (up by 121% WoW).
Other major news were foreign exchange reserves reach $23.925 billion, Ufone signs Rs21 billion syndicated financing for 4G services, Urea sales surge 10 percent, OGRA cuts local gas producing firms' sale price and Textile exports hit life-high of $6.04 billion in July-Oct.
Copyright Business Recorder, 2021
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