Karachi, November 23, 2024 – The investors of Pakistan Stock Exchange (PSX) anticipate that the benchmark KSE-100 index likely to cross 100K points next week due to improved economic indicators.
However, on the flip side they feared any unpleasant event due to political protest announced by Pakistan Tehreek I Insaaf (PTI) would adversely affect the PSX sentiments.
Analysts at Arif Habib Limited said that the market likely to maintain positive momentum in the coming week, driven by certain scrips trading at attractive valuations, which are likely to continue enticing investor interest.
The KSE-100 index of PSX is currently trading at a PER of 5.5x (2025) compared to its 10-year average of 8.3x offering a dividend yield of ~8.9% compared to its 10-year average of ~6.4%.
The PSX exhibited stellar performance this week, reaching a historic milestone by surpassing an all-time high of 97,798 points. Following last week’s strong rally, the positive momentum continued at the PSX, supported by favorable macroeconomic indicators, strong fundamentals, and robust liquidity.
Key developments during the week included the country posting a current account surplus of USD 218 million in 4MFY25. Furthermore, in the PIB auction held during the week, the SBP raised PKR 350 billion, exceeding the target of PKR 300 billion, with yields declining by up to 19bps. Power generation also rose by 7.2% YoY, reaching 10,262 GWh (13,793 MW) in Oct’24, with actual generation exceeding reference generation by 0.7% for the first time in 13 months. Additionally, SBP reserves increased by USD 29 million WoW, closing at USD 11.3 billion. The PKR depreciated marginally by 0.10% WoW, ending the week at 277.96 against the USD. The market concluded the week at 97,798 points, marking a gain of 4,506 points (+5% WoW).
Sector-wise positive contributions came from i) Commercial Banks (1,475 points), ii) Fertilizer (1,386 points), iii) Miscellaneous (112 points), iv) Pharmaceuticals (103 points) and v) Chemical (83 points). Meanwhile, the sectors that mainly contributed negatively were i) Cement (151 points), ii) Refinery (54 points), and iii) Technology & Communication (35 points). Scrip-wise positive contributors were FFC (980 points), MEBL (393 points), BAHL (254 points), HBL (207 points), and MCB (180 points). Meanwhile, scrip-wise negative contributions came from HUBC (91 points), SEARL (59 points), TRG (56 points), LUCK (52 points), and ATRL (48 points).
Foreigner selling was witnessed during this week, clocking in at USD 32.9 million compared to a net sell of USD 10.6 million last week. Major selling was witnessed in Banks (USD 21.8 million) followed by Fertilizer (USD 7.4 million). On the local front, buying was reported by Companies (USD 13.0 million) followed by Mutual Funds (USD 12.3 million). Average volumes arrived at 870 million shares (up 1.8% WoW), while the average value traded settled at USD 109 million (down 4.8% WoW).
