Karachi, March 30, 2024 – The Pakistan stock market is anticipated to embark on a positive trajectory in the coming week, buoyed by promising developments on the economic front and expectations of robust corporate results.
Analysts at Arif Habib Limited have expressed optimism regarding the market’s performance in the upcoming week, foreseeing a continuation of positive sentiment. The commencement of the result season is expected to be a focal point, with certain scrips poised to attract attention amidst expectations of strong financial performance.
Furthermore, the prospect of further advancements related to the privatization of state-owned enterprises (SOEs) or progress in the Extended Fund Facility (EFF) program with the International Monetary Fund (IMF) is likely to bolster market sentiment.
Stocks in the market are currently trading at attractive levels, which is expected to serve as an additional incentive for investors seeking opportunities.
The Karachi Stock Exchange-100 (KSE-100) has demonstrated robust performance throughout the week, reaching an all-time high of 67,246 points. This surge in momentum is attributed to investors engaging in value hunting following stability on the economic front and ongoing progress in SOE privatization.
On the economic front, the State Bank of Pakistan (SBP) reported a notable increase in the repatriation of profits and dividends on foreign investment in Pakistan, climbing to USD 759 million in the first eight months of fiscal year 2024, compared to USD 225 million in the same period last year. Additionally, the National Accounts Committee (NAC) disclosed a GDP growth rate of 1 percent in the second quarter of fiscal year 2024, driven by higher production of crops such as cotton, rice, and maize. Moreover, SBP’s reserves witnessed an increase of USD 4 million, reaching USD 8.0 billion.
Throughout the week, the Pakistani Rupee closed at 277.95 against the US Dollar, strengthening by PKR 0.19 or 0.07 percent week-on-week. The market closed at 67,005 points, marking an increase of 1853 points or 2.84 percent week-on-week.
Positive contributions to sector-wise performance were led by Commercial Banks, Fertilizers, Cement, Power Generation & Distribution, and Oil & Gas Exploration Companies. Conversely, Leather & Tanneries and Transport sectors experienced negative contributions.
Scrip-wise, positive contributors included MEBL, HUBC, ENGRO, FFC, and MCB, while negative contributions came from SYS, BAFL, SHEL, TRG, and SRVI.
Foreign buying activity continued during the week, amounting to USD 3.6 million compared to a net buy of USD 2.0 million in the previous week. Major buying was observed in All Other Sectors and Commercial Banks. On the local front, selling was reported by Companies followed by Banks/DFIs.
Average volumes stood at 331 million shares, up by 12 percent week-on-week, while the average value traded settled at USD 42 million, up 7 percent week-on-week.
In conclusion, with encouraging economic indicators and ongoing progress in key sectors, the Pakistan stock market is poised to maintain its positive momentum in the upcoming week, providing opportunities for investors to capitalize on favorable market conditions.
