Karachi, September 2, 2023” KSE 100 Index declined by -5.2 percent on WoW basis, this decline can largely be attributed to growing concern over upcoming monetary policy where investors fear SBP will opt for significant increase in policy rate to stop continuous depreciation of Rupee and to tame inflation in the back drop recent increase in local energy prices.
The market commenced on a negative note amid ambiguity regarding general elections in country, macroeconomic uncertainty, currency devaluation, and inflation outlook. Furthermore, uncertainty over any possible announcement of emergency policy by SBP also fuelled the dampened sentiment.
Moreover, last week SBP’s reserves decreased by USD 81mn, reaching USD 7.8bn. The PKR depreciated during the week against greenback, closing at PKR 305.47, losing PKR 4.46 | -1.5% WoW. Overall, the market closed at 45,313 points, plunges by 2,359 points | -4.9% WoW (largest decline since 26th Nov’21).
Sector-wise negative contributions came from i) Commercial Banks (524pts), ii) Cement (333pts), iii) Oil & Gas Exploration Companies (285pts), iv) Technology & Communication (247pts), and v) Fertilizer (216pts). Meanwhile, the sector which mainly contributed positively was Automobile Assembler (5pts). Scrip-wise negative contributors were SYS (186pts), HUBC (159pts), PPL (144pts), MEBL (143pts), and LUCK (141pts). Meanwhile, scrip-wise positive contributions came from HMB (21pts), INDU (15pts), SCBPL (8pts), AICL (6pts), and MTL (4pts).
Foreigner buying continued during this week, clocking in at USD 3.3mn compared to a net buy of USD 1.7mn last week. Major buying was witnessed in Exploration and Production (USD 1.2mn) and Technology and Communication (USD 1.0mn). On the local front, selling was reported by Banks/DFIs (USD 6.3mn) followed by Broker Proprietary Trading (USD 3.4mn). Average volumes arrived at 235mn shares (up by 14% WoW) while the average value traded settled at USD 32mn (up by 15% WoW).
Other major news: i) Govt hikes petrol price by nearly Rs15, HSD by Rs18, ii) IMC to launch Corolla Cross hybrid to revive market, iii) PTCL informs PSX it’s making sizable investment in telecom sector, iv) The Organic Meat Company Secured Export Contract of Boneless Beef to UAE and v) Pakistan to receive $77mn for flood resilience.
During the week average traded volume and value stood at 210mn shares and Rs.8bn respectively.
On flows end insurance, foreign corporate and overseas Pakistanis net purchased equities worth $8mn, $2.63mn and $1.17mn respectively as of yesterday`s close, whereas banks, broker prop books and mutual fund net sold equities worth $5.44mn, $3.64mn and $2.43mn respectively as of yesterday`s close.