KARACHI: The outgoing week remained bullish for the inventory market which noticed the KSE-100 index accumulating beneficial properties of 1,102 factors (2.7 per cent) and settle at 41,266 after flattening the 41,000-point barrier.
In the course of the week the market witnessed 4 bullish and single bearish buying and selling session.
The optimistic developments that elated investor sentiments and attracting them to the market included better-than-expected outcomes from the banks, cement and fertiliser firms. Additional, the rupee appreciated towards the greenback to a five-month excessive. However there was no dearth of ongoing occasions that saved the buyers on their toes.
The worldwide equities markets and worldwide oil costs remained unstable all through the week, making it troublesome for buyers to take positions within the index heavyweight vitality sector.
On the native entrance, stockholders continued to be spooked by the deepening disaster on the political entrance the place the Pakistan Democratic Motion (PDM) prepares to carry a public gathering in Quetta on Sunday after two earlier in Gujranwala and Karachi the place fiery speeches fuelled fears of extra complexities on the political entrance.
The lengthy await the FATF plenary resolution on Pakistan’s place saved the buyers on the tenterhook.
On the financial entrance, the present account posted surplus for the third consecutive month in September. The overseas direct funding and large-scale manufacturing numbers got here in decrease year-on-year.
Overseas buyers bought shares price $6.9m in the course of the outgoing week, the sell-off primarily by overseas corporates. Amongst native members, mutual funds and firms have been internet patrons of $8.59m and $4.39m whereas people and banks bought shares valued at $7.76m and $4.24m respectively. Brokers have been internet patrons of shares amounting to $2.45m.
Common each day quantity stood at 466m shares (up by 57laptop week-on-week) whereas common worth traded amounted to $98m (up by 59laptop). Arif Habib Ltd reported that the sector-wise optimistic contributions got here from business banks (240 factors), fertiliser (230 factors), cement (226 factors), car assemblers (73 factors) and expertise and communication (64 factors).
Scrip-wise optimistic contributions have been led by Engro (136 factors), BAHL (133 factors), EFERT (61 factors), Fortunate Cement (60 factors) and MEBL (57 factors). Different main gainers have been Unity Meals; Cherat Cement and Attock Refinery.
The week forward could possibly be thrilling with buyers more likely to be pushed by varied elements. The FATF resolution introduced within the night on Friday can be mentioned. Although a non-event as Pakistan was anticipated to be retained within the gray listing, it was encouraging to notice that the FATF plenary assembly acknowledged the nation’s efforts to curb cash laundering.
Pakistan has been requested to finish six motion objects by Feb 21, which raises hopes of return to the white listing in about 4 months. Different positives for the market forward are the foremost appreciation of the rupee towards the greenback and the continuation of corporates posting stronger quarterly outcomes.
Some large ticket firms PSO, PAEL, NBP, FFBL and MCB would unveil figures within the upcoming week. On the flip facet elements that may drag down the market embrace the louder noises on the political entrance and the growing new instances of Covid-19 that’s feared to result in extra lockdowns. Lastly, buyers are unlikely to take contemporary positions within the rollover week.
Printed in Daybreak, October 25th, 2020