The Pakistan Stock Exchange (PSX) snapped the two-day winning streak on Monday amid uncertainty regarding resumption of the International Monetary Fund’s (IMF) $6 billion Extended Fund Facility (EFF), with the benchmark KSE-100 Index shedding 192.08 points (-0.43 percent) to close at 44,629.45 points.
Other reasons for the bearish trend included massive depreciation of Pakistan rupee against the US dollar during the day, as the rupee broke all the record for all-time low to close the day’s trade at 172.78, and increase in petroleum prices by up to Rs10.95 per litre and power tariff by Rs1.29 per unit. However, expectation of positive news from the IMF still supported the market and saved it from a free fall.
The market opened on a negative note and fell by almost 380 points within the first half an hour; however, the traded volumes were less than 10 million at this stage, and later the market remained volatile throughout the session.
The KSE-100 Index moved in a range of 547.9 points, showing an intraday high of 44,990.1 points and a low of 44,442.2 points. Among other indices, the KSE All Share Index shed 96.03 points (-0.38 percent) to close at 30,674.11 points, while All Share Islamic Index shed 68.6 points (-0.31 percent) to close at 21,847.04 points.
A total of 339 companies traded shares in the stock exchange, out of them shares of 113 closed up, shares of 215 closed down while shares of 11 companies remained unchanged. Out of 95 traded companies in the KSE-100 Index, 30 closed up, 64 closed down and one remained unchanged.
The overall market volumes decreased by 86.04 million to 248.29 million shares. Total volume traded for the KSE-100 Index was 102.25 million shares. The number of total trades decreased by 13,087 to 108,216, while the value traded decreased by Rs2.97 billion to Rs8.82 billion. The market capitalisation decreased by Rs29.48 billion.
Among scrips, HUMNL led the table with 25.1 million shares, followed by WTL (20.84 million) and HASCOL (13.84 million). Stocks that contributed significantly to the volumes include HUMNL, WTL, HASCOL, UNITY and DSL, which formed 33.5 percent of total volumes.
Sector wise, the index was let down by technology & communication with 146 points, cement with 47 points, engineering with 27 points, food & personal care products with 25 points and textile composite with 24 points. The most points taken off the index were by TRG which stripped the index of 88 points followed by SYS with 47 points, BAHL with 42 points, FFC with 22 points and UNITY with 17 points.
The sectors propping up the index were oil & gas exploration companies with 77 points, commercial banks with 42 points, fertilizer with 19 points, investment banks/ investment companies/ securities companies with 8 points and insurance with 6 points.
The most points added to the index were by HBL which contributed 48 points followed by MCB with 31 points, OGDC with 30 points, PPL with 29 points and ENGRO with 27 points. The oil and gas exploration sector saw renewed investors’ interest after international oil prices hit their highest level in years.
Category: Pakistan Stock Exchange
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PSX sheds 192 points amid IMF talks uncertainty, falling rupee
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PSX may bear brunt of inconclusive talks with IMF
The Pakistan Stock Exchange (PSX) is likely to bear brunt of inconclusive talks between Pakistan and the International Monetary Fund (IMF) for the resumption of the Extended Fund facility (EFF), and massive increase in oil, gas and electricity prices in the week starting today (Monday).
Moreover, consistent depreciation of the rupee against the US dollar that may continue following inconclusive talks with IMF, continuous surge in global commodity prices and uncertainty on the geopolitical front may keep the bourse under pressure.
The inflationary figures also remained on a relatively higher side as weekly inflation surged by 0.20 percent for the second straight week ended on October 14, 2021, after witnessing an increase of 1.21 percent in the preceding week, while it went 12.66 percent up on a year-on-year basis. This may dent the investors’ confidence, which is already at a very low level.
Although the feel good factor returned last week, as the stocks closed the week in the green zone after four weeks in a row, yet the market bounced back during the last two sessions on the expectation of resumption of the Extended Fund facility (EFF) by the IMF. Now the IMF factor along with other negative pieces of news may cause heavy selling in the bourse.
However, the corporate profitability is likely to dictate the market performance amid the results season, as there are strong expectations that earnings will grow from 8 percent to 10 percent for the first quarter of the current fiscal year. Furthermore, the expected formal announcement of the new Inter-Services Intelligence (ISI) chief will also help settle jitters on the bourse.
There is no major unprecedented problem on the economic side while companies’ fundamentals are also strong. The financial results of the companies are being announced and most of the companies have shown unprecedented results in their history. Moreover, decline in infection ratio of the novel coronavirus in Pakistan and return to normalcy may give some support to the equity market.
On the other hand, shares’ prices have suffered more as compared to the drop in the index level, and shares of some major companies are available at very attractive prices. Analysts believe the market participants should look to invest in the companies with strong fundamentals instead of going for very small stocks as shares are available in the market at very lucrative prices.
The benchmark KSE-100 Index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 5.2x (2021) compared to Asia Pacific regional average of 14.7x while offering a dividend yield of 8.1 percent versus 2.2 percent offered by the region.
Sector-wise positive contributions last week came from commercial banks (393 points), oil & gas exploration companies (136 points), fertilizer (123 points), cement (98 points), and pharmaceuticals (28 points). Whereas, sectors which contributed negatively were technology & communication (342 points), and food & personal care products (50 points).
Scrip-wise positive contributors were HBL (153 points), PPL (87 points), UBL (67 points), LUCK (59 points) and OGDC (42 points). Meanwhile, scrip-wise negative contributions came from TRG (260 points), SYS (70 points) and PAKT (27 points).
Foreign selling continued last week, clocking-in at $13.3 million compared to a net sell of $3.7 million in the preceding week. Major selling was witnessed in fertilizer ($12.1 million), commercial banks ($7.8 million) and cement ($3.11 million). On the local front, buying was reported by insurance companies ($12.2 million) followed by mutual funds ($3.4 million). Average volumes clocked-in at 342 million shares (up by 29 percent on a week-on-week basis) while average value traded settled at $71 million (up by 20 percent on a week-on-week basis).
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PSX consolidates gains with 487-point rally
The Pakistan Stock Exchange (PSX) remained bullish for the second day in a row on Friday, with the benchmark KSE-100 Index gaining 487.85 points (+1.1 percent) to close at 44,821.53 points.
The market opened on a positive note. But soon went on a selling spree. Which brought the index down by almost 136 points. However, the traded volumes remained very low at this stage and later the market remained on a bullish trend. Which continued for both sessions of the day. The KSE-100 Index gained around 1,600 points, albeit overall volumes remained around 300 millions, during the last two days.
The KSE-100 Index moved in a range of 637.7 points. Showing an intraday high of 44,834.8 points and a low of 44,197.1 points. Among other indices, the KSE All Share Index gained 265.51 points (+0.87 percent) to close at 30,770.14 points. All Share Islamic Index gained 274.22 points (+1.27 percent) to close at 21,915.64 points.
A total of 375 companies traded shares in the stock exchange. Out of them shares of 237 closed up, shares of 123 closed down. Shares of 15 companies remained unchanged. Out of 92 traded companies in the KSE-100 Index, 65 closed up. As many as 26 closed down and one remained unchanged.
The overall market volumes decreased by 54.27 million to 334.33 million shares. Total volume traded for the KSE-100 Index was 152.02 million shares. The number of total trades decreased by 13,289 to 121,303, while the value traded decreased by Rs1.29 billion to Rs11.80 billion. The market capitalisation increased by Rs47.28 billion.
Among scrips, SERF led the table with 34.26 million shares, followed by UNITY (26.47 million) and WTL (25.49 million). Stocks that contributed significantly to the volumes include SERF, UNITY, WTL, TREET, and BYCO, which formed 36.5 percent of total volumes.
The spropping up the index were oil & gas exploration companies with 138 points, fertilizer with 79 points. The others includes; cement with 57 points, commercial banks with 46 points and food & personal care products with 25 points. The most points added to the index were by PPL which contributed 49 points followed by POL with 43 points. MCB with 39 points, OGDC with 38 points and SYS with 31 points.
Sector wise, the index was let down by tobacco with 14 points. , glass & ceramics with 4 points and miscellaneous with 2 points. The most points taken off the index were by TRG which stripped the index of 25 points followed by PAKT with 14 points, HMB with 12 points, FABL with 7 points and AGP with 6 points.
According to experts, the ongoing talks between the government and the International Monetary Fund (IMF) remained the centre of attention for the investors. Agenda of the meeting is to club two reviews under the Extended Fund Facility and approving one million dollar loan tranche.
They said the finance minister hinted at over 5 percent growth projections for FY22, strong financial results and investors’ expectations regarding the release of the next IMF tranche, amid resumption of $6 billion EFF, played a catalytic role in the bullish close. Adding that they added that the bullish activity continued on surging global equities and crude oil prices.
Expersts termed it as healthy activity after a long time witnessed in blue-chip stocks. Looking ahead, the market needs to sustain its bullish momentum. They advised investors to buy mainly blue-chip stocks on major dips across-the-board, they said.
