Gain streak continues as KSE-100 index ends above 46,000 level
Summary
During the week the investors finally came into terms with the physiological level of 46,000 of KSE-100 Index and profit-taking was observed on a range bound market. The mounting international prices and sliding at times on the indirect talks between United States and Iran kept market moving up and down. Global coal prices also hovered on the higher side leaving stocks in the cement sector under pressure.
The benchmark KSE-100 Index surged by 170 points and also crossed 46,000 level to close at 46.0079.37 Trading activities decreased by 28% and average volume was 207m. The market capitalization gained Rs.23 bn and closed at Rs.7,875T.
Monday: KSE-100 index 45,841.25 Change (-68.40) Vol 150 m Mkt.Cap Rs.7,834 T.
Tuesday: KSE-100 index 45,947.95 Change (+106.7) Vol 187 m Mkt.Capt Rs.7,843 T.
Wednesday: KSE-100 index 46,339.76 Change (+391.81) Vol 243 m Mkt.Capt.Rs.7,906 T.
Thursday: KSE-100 index 45,940.04 Change (-399.72) Vol 286 m Mkt. Capt. Rs7.846 T.
Friday: KSE-100 index 46,079.37 Change (+139.33) Vol 171 m Mkt. Capt. Rs7,875 T.
Participants/Activity
Foreigners were net seller of $5.90m during the week; companies were buyers $0.78 m, Banks were sellers $1.31m; Mutual fund net seller $4.53m individuals net buyer $3.09 m and Insurance were seller$3.70m.
Volume leaders during the week were: World Call Tele.56m; Telecard Ltd.52m; Hum Network 43m; K-Electric 36 m; Engro polymer 25m; TPL Properties 24m; Pak Electro18 m; Treet Corp 17m; TPL Corp, BOP and TRG 11m each; Cnergico PK 8m and OGDC 6m.
Participants: Co 364; Gain 155 Loss 186 and Unchanged 23.
Triggers
- SBP reserves increased by $1.6bnto $17.33 bn during the week ended Feb4.During the week ended, the central bank paid $400 mn in debt servicing. The SBP received $1.053 bn from IMF under EFF programme and $1 bn in proceeds against Pakistan International Sukuk issuance. The country’s total reserves also increased to $23.720 bn while the holdings of commercial banks were $6.364 bn.
- Weekly inflation eases 0.08pc. The SPI which gauges inflation on a short term basis fell 0.08 per cent for the week ended on Feb 10
- Auto sector posts robust sales in seven months. Barring buses, two and three wheelers. The auto sectors turned in robust performance as car sales jumped 61.5 per cent in the first seven months of this fiscal year, followed by 80 pc increase in demand for trucks, 56 pc in jeeps/pick up and 16 pc in farm tractors.
- Remittances fall by 5pc in January year-on-year to $2.144 bn but inflows stay above $2 bn mark for the 20 month running.
- Book building for Adamjee Life concludes at the strike price of Rs.28 a share on Friday.
- The cut-off yields on treasury bills were slightly reduced by up to five basis points in the auction held on Wednesday and govt. raised Rs.592 bn through the auction of three, six and 12 months T-bills.
- Inflow under Roshan Digital Account amounted to $222 mn in January, down nine pc from the preceding month but a year on year basis however the increase was almost 38 pc.
Conclusion
Pakistan is now eligible for MSCI’s Frontier Market (FM) 100 and FM 15 per cent country-capped indices, the global investment index provider. As a result, companies are now qualified to become part of the two indices in MSCI’s May2022 indices in MSCI’s May 2022 Semi-Annual Index Review. This can attract limited foreign inflows.
Indices by MSCI help passive investors allocate their funds in a variety of equity markets around the world.
Raees Uddin Khan
Research & Development, Institute of Securities Management Research & Training (Pvt) Ltd, Karachi.
Dated: Feb 12, 2022