PSX sees a positive trend – Markets

KARACHI: The Pakistan Stock Exchange saw a positive trend in the outgoing three-day week after the long Eid holiday.

Investors celebrated the resumption of the long-awaited IMF program as Pakistan reached the services-level agreement for the release of $1.17 billion.

The benchmark KSE-100 jumped 730.90 points on a weekly basis and broke through the psychological level of 42,000 to close at 42,074.91 points.

Trading activity also improved, with average daily volumes on the ready counter up 96.9% to 177.60 million shares this week, compared to the previous week’s average of 90. .21 million shares, while the average daily traded value increased by 111.2% to reach 6.43 billion rupees during this week compared to the previous one. Rs 3.04 billion for the week.

BRIndex100 gained 95.54 points during this week to close at 4,188.46 points with an average daily turnover of 164.374 million shares.

BRIndex30 rose 320.72 points on a weekly basis to close at 15,378.84 points with average daily trading volumes of 103.742 million shares.

Foreign investors remained net buyers of shares worth $1.395 million this week. The total market capitalization increased by 103 billion rupees or 1.5% to reach 7,044 billion rupees.

An analyst from JS Global Capital said Pakistani stocks ended the 3-day week on a positive note at 42,075, reporting an increase of 1.8% on a weekly basis.

Among the major sectors that outperformed during the week were WTO (up 5.0%), Engineering (up 4.1%) and Cement (up 3.0%) . Investors celebrated the resumption of the long-awaited IMF program as Pakistan reached the services-level agreement for the release of $1.17 billion. Additionally, the size of the program has also increased by $1.0 billion to $7.0 billion, extending the program through June 2023, subject to Board approval. Along with this, international oil prices remained volatile, where Brent Crude touched a recent low of $94.78 per barrel (September contract) before closing the week above $100 per barrel.

In order to pass on the impact of lower international oil prices and provide relief, gasoline and diesel prices have also been reduced in the country. All these positive developments overshadowed the 125 basis point increase in the country’s key rate last week.

An analyst from Arif Habib Limited said the three-day week had started on a positive note as the government reached a staff-level agreement with the IMF that would see the disbursement of $1.2 billion to the under the expanded financial mechanism subject to executive approval. Council (IMF).

Meanwhile, Prime Minister Shehbaz’s endorsement of oil price reduction (reduction of MS and HSD by Rs 18.50/litre and Rs 40.54/litre) was also well received by the market.

On the other hand, the Pakistani Rupee depreciated further after holding a recovery briefing following the announcement of the IMF deal (closing the week at Rs 210.95), resulting in bearish momentum on the last day of purse of the week.

Positive sector contributions came from commercial banks (up 194 points), cement (up 99 points), technology and communication (up 93 points), fertilizers (up 85 points ) and oil and gas exploration companies (up 82 points). While the sectors that contributed negatively were automotive assembly (down 22 points) and pharmaceuticals (down 9 points).

Positive contributors at the certificate level were MEBL (up 84 points), SYS (up 70 points), PSO (up 53 points), LUCK (up 45 points) and PPL (up 70 points). 39 dots). Meanwhile, the negative contribution from certificates came from COLG (down 17 points), ABOT (down 15 points), MTL (down 10 points), POL (down 10 points) and EFUG (down 10 points). down 9 points).

Foreign purchases were seen this week, reaching $1.40 million, compared to a net purchase of $1.63 million last week. Significant purchases were observed in all other sectors ($0.43 million) and in banks ($0.36 million). On the local front, sales were reported by banks/DFIs ($1.43m), followed by insurance companies ($1.13m).

Copyright Business Recorder, 2022

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