April 10, 2022 (MLN): In the outbound week, the benchmark KSE-100 index remained volatile as it ended the week dropping 708 points or 1.57% to settle at the 44,444 point level.
Initially, the stock market witnessed a sell-off due to the political events that took place in the National Assembly, where the vote of no confidence against the incumbent prime minister was rejected by the speaker and the dissolution of the meetings by the prime minister eroded investor confidence. . Similarly, a massive depreciation of PKR against the dollar due to a decline in the country’s forex reserve also hit investor sentiment.
However, the stock market rebounded following the Supreme Court decision to quash the previous deputy ruling and release the National Assembly authorities along with the Prime Minister and further instruct the National Assembly speaker to hold a meeting on April 9. . be adjourned without the conclusion of the motion of no confidence.
In economic terms, the SBP raises interest rates by 250 points to 12.25%. The main motive for raising the policy rate is to safeguard external accounts and control inflation. Although higher interest rates are weighing on the market, investors do not expect further rate hikes in the near future, a Spectrum Securities note said.
During the week, the stock witnessed 3 sessions in favor of bull while 2 sessions ended in favor of bear. The average daily traded value in the benchmark remained at Rs3.81 billion with an average daily volume of 67.78 million shares.
Negative contributions by sector came from cement (318 points), oil and gas exploration (89 points), power generation and distribution (80 points), engineering (65 points) and food (60 points). While the sectors that made a positive contribution, Chemicals (70 points), Fertilizers (43 points), Inv. Banks (20 points), cable and electrical goods (5 points) and Real Estate Investment Trust (2 points).
In writing, the negative contributions were LUCK (145 points), HUBC (60 points), TRG (48 points), DGKC (46 points) and OGDC (45 points). Meanwhile, in terms of script, EPCL (55 points), SYS (26 points), EFERT (24 points), MEBL (22 points) and MCB (19 points) contributed negatively.
Meanwhile, the KSE All Share market cap fell by Rs125.5 billion or 1.65% over the course of the week, registering at Rs7.47 trillion compared to a market cap of Rs7.6tr registered last week.
In terms of flow, foreigners were the net sellers during the week, selling shares worth $3.78 million, compared to net sales of $15.5 million last week, largely supported by foreign companies to the tune of $5, 58 million. Industry-wise, big sales were seen in Banks ($3.8 million) and Cement ($1.4 million).
On the local side, the bulk of purchases were reported by individuals and banks, at $14.8 million and $4.7 million, respectively. However, mutual funds and insurance companies were on the other side with net sales of $12.4 million and $4.6 million, respectively.
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