Tag: PSX

KARACHI: The stock market is likely to stay positive during next week owing to the expected transfer of $3 billion from Saudi Arabia.

Analysts at Arif Habib Limited said that the market to show positivity in the upcoming week is attributable to support from Saudi Arabia in terms of safe deposits of $3 billion in the upcoming week which will release pressure off of foreign exchange reserves, the slowdown in international oil prices which will alleviate inflationary pressure, and end of roll-over week.

However, the last date of MSCI rebalancing on November 30, 2021 might trigger foreign selling, current macro-economic concerns like rising imports, higher inflationary reading due to increasing prices of commodities, and pressure on currency could keep the market range-bound.

The benchmark KSE-100 Index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 4.5x (2021) compared to Asia Pac regional average of 15.0x while offering a dividend yield of 8.5 per cent versus 2.2 per cent offered by the region.

This week trading activity remained chaotic and gloomy with 2,375 points (5.11 per cent WoW; Highest weekly decline after 27th Mar’20) being eroded from the KSE-100 index which closed at 44,114 points this week.

The decline is attributable to i) State Bank of Pakistan increasing policy rate by 150 basis points to 8.75 per cent, ii) alarming current account deficit which increased to USD 5.1 billion in 4MFY21, iii) beginning of the roll-over week, iv) net selling from foreigners amid a transition from Emerging Market to the Frontier Market and v) decline in foreign exchange reserves putting pressure on PKR parity. Moreover, the announcement of a staff-level agreement with IMF failed to rejuvenate investors’ sentiments. Albeit, the index rebounded amid i) end of petroleum dealers strike post agreement with the government to increase margins, ii) news of Saudi inflow of USD 3bn expected next week, and iii) nosedive in international oil prices which might be a breather for the economy. 

Contribution to the downside was led by i) Cements (462 points), ii) Commercial Banks (326 points), iii) Technology and Communication (290 points), iv) Fertilizer (270 points), and v) Oil & Gas Exploration (252 points). Scrip-wise major losers were LUCK (205 points), TRG (177 points), HBL (114 points), PPL (98 points), and ENGRO (95 points).

Foreigners offloaded stocks worth of USD 39.1 million compared to a net sell of USD 25.0 million last week. Major selling was witnessed in Commercial Banks (USD 15.7 million) and Fertilizer (USD 6.3 million). On the local front, buying was reported by Individuals (USD 16.0 million) followed by Companies (USD 13.3 million). That said, average daily volumes and traded value for the outgoing week were up by 8 per cent and 13 per cent to 264 million shares and USD 60 million, respectively.

KARACHI: Bears ruled the stock market for the fourth consecutive session on Thursday as the benchmark index declined by 428 points.

The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 43,936 points as against the previous day’s closing of 44,364 points.

Analysts at Arif Habib Limited said that bears ruled over the bulls for the fourth consecutive session in a week due to concerns over the devaluation of the Pak rupee and the last leg of foreign selling spree.

Roll-over week continued to remain under pressure despite attractive valuations in terms of low P/E multiples and high dividend yields.

Technology stocks remained in the limelight throughout the day as traders placed the bet on high-beta stocks to mark quick trading gains. On the flip-side, Institutional investors fetched for value hunting in the last trading hour.

Sectors contributing to the performance include Commercial Banks (-140 points), Power (-59 points), Fertilizer (-50 points), Cement (-48 points) and Pharmaceuticals (-432 points).

Volumes decreased from 310.4 million shares to 195.2 million shares (-37.1 per cent DoD). Traded value also decreased by 35.2 per cent to reach US$ 48.0 million as against US$ 74.0 million.

Stocks that contributed significantly to the volumes include TPLP, BYCO, HUBC, WTL and TRG.

KARACHI: The stocks gained 379 points on Friday owing to major trading activity in banking sector on massive rise in interest rate by the central bank.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended at 46,489 points as compared with previous day’s closing of 46,110 points.

Analysts at Arif Habib Limited said that the market mostly stayed in the green zone today mainly led by the banking sector.

In the first session, positive momentum was observed as investors became optimistic due to the Large Scale Manufacturing Industries (LSMI) output number that increased by 5.15 percent in the first quarter (July-September) of the current fiscal year 2021-22 compared to the same period of last fiscal year 2021, as almost all major manufacturing sectors posted growth.

In the second session, profit booking was observed across the board after the Current Account Deficit (CAD) number clocked in at USD 1.7 billion during October 2021. On YoY basis, the primary reason behind the deficit was 66 per cent YoY increase in total imports to USD 6.8 billion.

On the institutional front, accumulation was witnessed in the banking stocks. Moving forward, Monetary Policy decision to raise the policy rate by 150 basis points to 8.75 per cent will create volatility in the upcoming roll-over week.

The Index closed at 46,489.4 points, up 378.9 points, (0.82 per cent DoD). Sectors contributing to the performance include Banks (178.98 points), Fertilizers (102.24 points), E&Ps (68.03 points) and Cements (62.03ptc).

Volumes increased from 263.55 million shares to 304.21 million shares (15.4 per cent DoD) and Traded value also increased by 41.6 per cent to reach US$ 68.46 million as against US$ 48.35 million.

Stocks that contributed significantly to the volumes include GGL, SERF, FNEL, FFLR1 and WTL.