July 31, 2022 (MLN): The past week witnessed a subdued performance in stock markets as economic problems and political turmoil, along with concerns about the rupee, created an uncertain environment.
However, the KSE-100 index posted marginal gains in WoW, mainly due to continued positive statements from the Ministry of Finance and SBP over Pakistan’s external situation and rumors of default were largely pinned down, according to a note from BMA Capital.
The week started with all eyes on court proceedings contesting the issue of CM Punjab. Then, when the decision fell in favor of PTI, the market feared with increasing political uncertainty, as the PML-N-led government did not have a majority in any of the provincial assemblies, which would make the implementation of the policy an arduous task, although news streams about PTI agreeing to a charter for the economy brought much-needed calm to the market.
However, sentiment turned positive after the Treasury Secretary announced at multiple addresses that the country has met all IMF requirements, and the $1.17 billion special tranche will be released after the Governing Council meeting to be held at the end of next year. month is planned.
Consequently, the market closed at 40,150 points, a gain of 73 points or a 0.18% increase in WoW. In USD terms, the index plunged a significant 4.4% this week as the PKR declined in value by 4.6% over the course of the week, ending at PKR 239.4/USD.
Out of a total of 5 sessions, the stock market witnessed 3 sessions in favor of bulls, while 2 sessions favored bears. The KSE-100 index hovered between the highs and lows of 40,629 and 39,606 levels respectively, before setting the week at 40,150 levels.
From the sector-specific lens, technology, banking, oil and gas exploration, chemical and oil and gas marketing companies kept the index in green territory as they added 176, 138, 58, 37 and 16 points to the index, respectively.
In contrast, Fertilizer, Automotive, Cement, Power Generation & Distribution and Auto Parts & Accessories collectively took 391 points during the week.
Script-wise, TRG, LOTCHEM, POL BAFL and HBL were the best performing stocks during the week, adding 132, 51, 47, 46 and 30 points to the index, respectively. While EFERT, ENGRO, INDU, FFC and THALL together took 289 points off the index.
Meanwhile, the KSE All Share market cap increased by Rs18 billion or 0.27% over the course of the week, registering at Rs 6.77 trillion compared to a market cap of Rs 6.75tr registered last week.
In terms of flow, foreigners emerged as net buyers during the week, buying shares worth $0.57 million, compared to a net purchase of $1.64 million last week. As for the sector, the main purchases were seen in technology ($3 million) and textiles ($0.64 million).
On the local side, the bulk of sales were reported by individuals, insurance companies, brokerages and mutual funds for $490.5 million, $424.5 million, $275.3 million and $273.8 million, respectively. However, banks and businesses were on the other side with net purchases of $772.7 million and $564 million, respectively.
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