Stock Watch

PSX under bearish spell: KSE-100 lose 463 points
Summary

Pakistan added 430 points previous week , and closed above 47,000 level The news on 23 August of SBP receiving the International Monetary Fund ‘s special drawing rights ( SDR ) allocating funds amounting to $2.75 bn , the market opened with a gain of 512 points om Monday. The market then went for profit taking till Friday mainly due to roll over week .Also The Covid cases were rising for confirmed cases of 1,123,813 to 1,144,341 on Friday. The death toll per day increased from 75 to 95 on Friday. A mixed bag of financial results also went to dampen investors enthusiasm. The terror attack on Thursday in Kabul airport killing 12 US troops and 60 others worried the investors of spillover effect on Pakistan

The KSE-100 Index declined 0.97 percent on week-on-weak basis and closed at 47,136.53 points. Trading actively slightly improved from previous week by 30% to average 384 m shares. The foreign investors were net seller $4.38m. The market capitalization decreased d by Rs.59 bn to Rs.8.8251 trillion.

Participants /Activity

Foreigners were net seller $4.38m during the week ;companies were buyer by $1.77m, Banks were seller $1.52m ; Mutual fund net buyer $1.99m individuals net seller $0.96m and Insurance were buyer $0.11m

Volume leaders during the week were: World Call Tele 126m; Ghani Glo Hoi 93 m; Bank of Punjab 63 m; Hum network35m; Azgard Nine 34 m; TPL Properties 33m ; Telecard Ltd 31m; Hascol Petrol 29m ; K Electric 26m;Kohinoor Spinning 25m ; Byco Petroleum and Yousuf Weaving 20m each and F.Net Equities 18m

Participants : Companies Av. 481 m; Gain 185 ;Loss 279 and Unchanged 17m

Triggers

– The Foreign exchange reserves of SBP decreased $47 m to $17.57 bn in the week ending on Aug20

– The total reserves decreased to $48.8 m to $24.62 bn . Dollar holdings of Commercial banks decreased to $1.8m to $7.04bn during the week .The SBP received on Aug 23 the International Monetary Fund’s special drawing rights ( SDR ) allocation funds amounting to $2.7 bn,which will increase foreign exchange reserves of the SBP on data to be published on Sept.2

– Pakistan’s textile and clothing exports posted double digit growth in the first month of this fiscal year increasing by 15.61 per cent to $1.471 bn compared to $1.272 bn in July 2020

– Inflation based on Sensitive Price Index (SPI ) for the consumption group for the week ended on Aug 26 witnessed a nominal increase of 0.22 per cent as compared to the previous week .

– Pakistan’s food import bill grew by 22.24 per cent to $647.036m in July compared to $529.321 m of the first month of last financial year.

– Dollar hits 10 month-high crosses Rs.166.30 against rupee on Thursday as the country’s foreign exchange reserves reached a historic level of $27.4 bn due to the inflow of$2.75 bn through SDR of IMF . The dollar crossed Rs.165 for the first time since Sepy.30 2020

– The country manufactured 12.27 million mobiles compared to the imports of 8.29 m sets during the first seven months of 2021 according to PTA

Conclusion

PTI Govt. has completed its 3 years in in power . PM seems to be confident while giving its record of performance during the three years tenure . The government has attained stabilization of the economy and is now moving towards for growth. Finance Minister on Friday has presented economic blue print and has confirmed no intention to quit IMF program which removes any uncertainty for the investors. The KSE 100 is hovering around 46,000 to 48,000 level since January 25 of 2021. There is great scope to move forward once index crosses 48,000 level as Government is eyeing for the up coming election .PM Imran Khan is pressing hard for Electoral reforms with the opposing parties.

Raees Uddin Khan
Research & Development
Institute of Securities Management Research & Training (Pvt) Ltd

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