KARACHI: Pakistan Stock Exchange continued its record breaking trend and hit new historic highest ever levels with impressive gains and high trading activities during the outgoing week ended on December 06, 2024 on the back of strong interest of local investors coupled with institutional support on expectation of further cut in interest rate after declining inflation in the country.
The benchmark KSE-100 index surged by 7,696.63 points or 7.6 percent on week-on-week basis and closed at new highest ever historic level of 109,053.95 points.
Trading activities also improved significantly as average daily volumes on ready counter increased by 72.0 percent to 1,683.40 million shares during this week as compared to previous week’s average of 978.80 million shares while average daily traded value on the ready counter increased by 49.2 percent to Rs 54.97 billion during this week against previous week’s Rs 36.85 billion.
BRIndex100 increased by 814.62 points during this week to close at 11,715.87 points with average daily turnover of 1,463.181 million shares.
BRIndex30 soared by 2,827.69 points on week-on-week basis to close at 35,481.86 points with average daily trading volumes of 969.637 million shares.
The foreign investors however remained on the selling side and withdrew $14.175 million from the local equity market during this week. Total market capitalization increased by Rs 970 billion to Rs 13.855 trillion.
An analyst at AKD Securities said that the market continued its bullish momentum throughout the week, leading to a major increase in KSE-100 index, registering its highest ever weekly point gains of 7,697 during the week to close at a record high of 109,054points, up 7.6 percent WoW. These were the highest weekly returns in 4.7-years.
The bullish momentum was fuelled by Nov’24 inflation clocking in at 4.9 percent YoY, lowest in 6.5 years, fuelling expectations for continued monetary easing in the upcoming MPC meeting on December 16, 2024.
Major contributing sectors to this rally were commercial banks, contributing 1,434points, followed by Fertilizer with 1,424points, and Oil & Gas Exploration, which added 1,148points during the week. Interest in the banking sector continued to rise, with gross advances increasing by 21 percent YoY as of Nov 15, 2024, taking the ADR to 46.9 percent, with expectations of crossing the 50 percent threshold before the year-end to avoid ADR-based taxation.
Sector-wise, vanaspati & allied products, transport, refinery, cable & electrical goods and engineering were amongst the top performers, up 23.7 percent/19.3 percent/18.5 percent/15.6 percent/14.5 percent.
Flow wise, major net selling was recorded by individuals, insurance companies, and foreigners with a net sell of $26.6 million, $21.0 million, and $14.2 million, respectively. On the other hand, mutual funds and companies absorbed most of the selling with a net buy of $44.0 million and $10.7 million, respectively.
Company-wise, top performers during the week were CNERGY (up 45.6 percent), Airlink (up 42.5 percent), PABC (up 30.1 percent), NML (up 29.0 percent) and PAEL (up 28.9 percent), while top laggards were EFUG (down 8.8 percent), JVDC (down 8.1 percent), HBL (down 3.8 percent), AKBL (down 0.5 percent) and PSEL (down 0.3 percent).
An analyst at JS Global Capital said bullish momentum continued taking the KSE-100 index to close at all-time high levels of 109,054, increase of 7.6 percent WoW.
The week started with inflation data for Nov-24 which clocked in at 4.9 percent YoY, marking the lowest CPI reading in 6.5 years. This decline is mainly due to the base effect from last year’s elevated inflation. Although headline inflation increased 50bps MoM, the overall YoY trend remains on a downward path. The average inflation rate for the first five months of FY25 was 7.9 percent, a notable reduction compared to the 28.6 percent average recorded in the same period in FY24.
Moreover, trade data released by PBS revealed a 7.4 percent YoY reduction in the trade deficit during the first five months of the current fiscal year, which stood at $8.65 billion, compared to $9.3billion during the same period last year.
Banking sector stocks gained momentum as banks continue to work toward meeting ADR targets, latest data showed sharp rise in banking sector’s Gross ADR as it reaches to 17-month high at 47 percent.
Copyright Business Recorder, 2024
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