KARACHI: The share market likely to move in green over million doses expected to be purchased from China within the ongoing quarter and subsequent distribution, dampening in COVID-19 concerns may fuel the market pack.
Analysts at Arif Habib Limited said that bull run energy stocks to roll over next week and keep interest in the bourse alive.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 7.6x (2021) compared to Asia Pac regional average of 15.9x and while offering DY of around 6.1 percent versus around 2.4 percent offered by the region.
While nervousness ruled market sentiment in the earlier part of the week with 3 cases of the new found coronavirus strain in Pakistan as well as profit taking by institutional investors, the equity bourse quickly posted a rebound amid extension in the Prime Ministers construction package to December 31, 2021.
We also highlight that potential partial resolution of the circular debt with installment due to IPP’s within Jan’21 aided market momentum. That said, the benchmark KSE-100 index breached the 44k level and closed at 44,435 points, up by 2.34 percent / 1018 points.
Sector-wise positive contributions came from i) Banks (342 points), ii) Fertilizers (231 points), and iii) Oil & Gas Exploration (202 points) while Power Generation & Distribution declined 37 points. Scrip-wise positive contributions were led by OGDC (112 points), FFC (95 points), MEBL (68 points), ENGRO (64 points), and PSO (63 points). HUBC and KOHC led the negative contributions, declining 43 and 15 points respectively.
Foreign selling continued this week clocking-in at USD 46.22 million compared to a net sell of USD 20.44 million last week.
Selling was witnessed in All other sectors (USD 46.14 million) and Technology (USD 0.95 million). On the domestic front, major buying was reported by Companies (USD 41.09 million and Individual (USD 20.04 million).
That said, average daily volumes and traded value for the outgoing week were up by 4 percent and 3 percent to 528 million shares and USD 142 million, respectively.