KARACHI: The stock exchange took care of to recuperate in the outgoing week with the KSE-100 index locking in gains of 241 points, or 0.5 per cent, to close at 47,198 points.
The early days of the week witnessed expansion of the bearish spell of last week as investors continued to be startled by a volley of bad news consisting of the massive trade deficit of $4.1 billion in August; devaluation of the rupee against the dollar; higher asset rates; unpredictabilities on the geo-political front and also the ever-changing circumstance of the Covid-19 pandemic in the nation.
During the week, the much-anticipated decision of the MSCI to downgrade Pakistan to Frontier Market (FM) from the Emerging Market (EM) set the market direction, with international financiers embarking on a major sell-off. However, in the last 2 days of the week the market presented a strong rally where regional customers rushed to pick up oversold stocks trading at attractive valuations.
Foreign financiers increased selling during the week which totaled up to $18.6 million against net sale of stocks worth $5.9 m the earlier week. Discharge was seen in Commercial Financial institutions of $10.9 m, Cement $6.1 m and also Expedition & Production $0.9 m. On the residential front, People were major purchasers of shares valued at $12.9 m as well as Insurance provider $6.2 m. Standard daily traded quantities clocked-in at 429m show TPL leading the quantity leaders with adjustment of hands in 175m shares.
According to AHL estimations, sector-wise positive contributions came from Modern technology & Communication (214 points), Miscellaneous (168 points), Industrial Financial institutions (148 factors), Drugs (59 factors), as well as Food & Personal Care Products (14 points). Concrete market drew the index down, eliminating 155 factors and also 2.6 pc of the market value week-on-week as coal costs remained to trade at almost 10-year high.
Scrip-wise, favorable contributors were made by PSEL (164 factors), MEBL (147 factors), Solution (115 points), TRG (99 points) and Nestle (39 factors). Major laggards consisted of LUCK (103 factors), HBL (57 factors) as well as Engro (51 points).
Going forward, the market is likely to remain variety bound as a major rally in the last two days of the outgoing week catapulted the KSE-100 index to over 47,200 factors. It has continued to offer challenging resistance in the past. Solid positive triggers would certainly be required for the index to proceed the north-ward trip.
International discharge was observed in both days adhering to the news of MSCI downgrade while the sell-off was soaked up generally by the individuals and also brokers. It needs to be seen if the institutional capitalists sign up with to continue the rally.
Financiers would currently watch out for the next major occasion of the IMF board’s authorization of the next testimonial for a positive outcome. Supplies in certain fields are still attractively valued. The acquiring momentum was developed around the innovation industry where significant supplies got hold of the spotlight.