KARACHI: Bullish trend likely to prevail in the stock market during next week owing to clarity on the political front.
Analysts at Arif Habib Limited said that the market to remain positive in the upcoming week.
READ MORE: KSE-100 index gains 117 points amid positive sentiments
With commencement of the result season and clarity on the political front, certain sectors and scrips are expected to stay under limelight.
Furthermore, the rollover of Chinese loans worth USD 2.3 billion and IMF negotiations, which will help bolster foreign exchange reserves.
While any dip in oil prices should also have a positive impact on the equity bourse.
READ MORE: Pakistan stocks rally on PKR stability
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 5.0x (2022) compared to Asia Pacific regional average of 11.5x while offering a dividend yield of 8.3 per cent versus 2.6 per cent offered by the region.
In the outgoing week the market roared back after political clarity emerged. Following Prime Minister Shehbaz Sharif’s oath taking ceremony, the new coalition government has begun work to tackle the economy.
Moreover, the rupee recovered against the dollar at a rapid pace closing at 181.4, marking a 3.6 per cent appreciation.
READ MORE: Pakistan stocks slide 242 points in profit taking
Additionally, the country received record high remittances this month clocking in at $2.8 billion, showing a 28 per cent increase MoM, on account of Ramadan / Eid.
Although, there was a slight correction mid-week, the market sustained momentum and posted its highest WoW increase since 3rd April 2020. The bourse closed at 46,602 points, (up by 4.9 per cent) WoW.
Sector-wise positive contributions came from i) Commercial Banks (395 points), ii) Fertilizer (292 points), iii) Technology & Communication (268 points), iv) Cement (241 points), and v) Refinery (129 points).
Whereas, sectors which contributed negatively i) Real Estate Investment Trust (2.19 points), ii) Vanaspati & Allied Industries (1.55 points). Scrip-wise positive contribution came from ENGRO (152 points), TRG (136 points), MEBL (122 points), HBL (85 points), and SYS (80 points).
READ MORE: Stocks gain 262 points on political stability
Meanwhile, scrip-wise negative contributors were COLG (14 points), FABL (10.88 points), Fatima (4.74 points), ABL (3.18 points) and DCR (2.19 points).
Foreign buying witnessed this week, clocking-in at USD 1.29 million compared to a net sell of USD 3.78 million last week. Major buying was witnessed in Technology (USD 2.21 million) and Fertilizer (USD 1.16 million).
On the local front, Selling was reported by Mutual Funds (USD 9.89 million) followed by Insurance Companies (USD 7.76 million). Average volumes clocked-in at 477 million shares (up by 213 per cent WoW) while average value traded settled at USD 66.3 million (up by 135.6 per cent WoW).
READ MORE: Stocks up 1700 points, highest ever single day gain
