KARACHI: Investors of Pakistan stocks may remain vigilant during the next week owing to prevailing political situation.
Analysts at Arif Habib Limited said that the market to remain range bound in the upcoming week as the participants will remain vigilant owing to the political situation in the country.
Key events to look out for include the monetary policy meeting which is scheduled to convene on November 25, 2022 and is likely to dictate the direction of the market.
The analysts are expecting no change in the interest rates by the State Bank of Pakistan (SBP).
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 4.1x (2023) compared to Asia Pac regional average of 12.7x while offering a dividend yield of 10.2 per cent versus 2.9 per cent offered by the region.
The market commenced on a negative note this week owed to the delay in Pakistan and IMF talks for 9th review. Furthermore, the postponement of Saudi Crown Prince visit added fuel to the negative sentiment.
Additionally, Pakistani Rupee (PKR) remained under pressure this week against greenback, plummeting by PKR 1.53 | 0.69 per cent WoW settling at PKR 223.17.
Meanwhile, the Large Scale Manufacturing Index (LSMI) data reported 0.4 per cent YoY dip in the first quarter of the fiscal year 2022-2023. Amidst this sentiment, removal of Pakistan from UK’s High Risk Third Countries cushioned the overall dip.
The market closed at 42,730, shedding 363 points (down by 0.84 per cent) WoW.
Sector-wise negative contributions came from i) Oil & Gas Exploration (124 points), ii) Commercial Banks (119 points), iii) Miscellaneous (58 points), iv) Cement (57 points) and v) Food & Personal Care Products (57 points).
Whereas, sectors which contributed positive were i) Fertilizer (140 points), ii) Technology & Communication (65 points), and iii) Chemical (17 points).
Scrip-wise negative contributors were OGDC (61 points), PSEL (53 points), UNITY (45 points), PSO (42 points) and PPL (35 points).
Meanwhile, scrip-wise positive contribution came from ENGRO (104 points), TRG (56 points), SYS (26 points), LOTCHEM (19 points) and DAWH (18 points).
Foreigners buying was witnessed during this week, clocking in at $2.06 million compared to a net sell of $4.65 million last week. Major buying was witnessed in OMC’s ($0.75 million), All other sectors ($0.47 million) and Technology & Communications ($0.45 million).
On the local front, selling was reported by Brokers Proprietary ($2.90 million) followed by Mutual Funds ($1.96 million). Average volumes clocked in at 186 million shares (down by 26 per cent WoW) while the average value traded settled at $28 million (down by 14 per cent WoW).