According to a report by AKD Securities, the week began on a
turbulent note, primarily due to concerns about global markets following
Japan's interest rate hike. However, a rebound in the E&P sector, spurred
by a surprising payout from MARI, revitalizing market sentiment in the last two
sessions.
Investors’ confidence was further strengthened by debt
rollover commitments during the week, aligning with IMF prerequisites ahead of
the Executive Board meeting expected later this month.
Additionally, T-Bill yields dropped in the latest auction on
Wednesday, signaling investor anticipation of rapid rate cuts in upcoming Monetary
Policy Committee (MPC) meetings. This decline in T-Bill yields consequently led
to KIBOR rates hitting 18-month low.
On the macroeconomic front, remittances for July 2024 were
reported at US$3.0 billion, up 45%YoY, cementing a positive outlook for the
current account balance for the ongoing year.
The energy sector remained a focal point of public discourse
amid rising power prices, prompting the government to establish a task force on
energy and announce plans to retire/ gradually phase out 15 IPPs.
The ECC directed the relevant ministry to formulate a
fertilizer policy to address concerns over production, pricing, and the
provision of gas, which might result in unify gas prices across the industry.
Despite initial volatility in market, participation surged
by 38%WoW, with the average daily traded volume rising to 493 million shares,
from 358 million shares a week ago.
On the currency front, PKR largely remained stable against the
greenback, closing the week at PKR278.55 to a US$.
Other major news flows during the week included: 1) Cement
sales declined by 7% due to slow down of economic activity, 2) SBP forex
reserves rose by US$51 million to US$9.15 billion, 3) SIFC was hopeful of
foreign investments once IMF deal was done, and 4) GoP hiked GST on tractors to
14%.
Woollen, Textile weaving, and Textile spinning were amongst
the top performing sectors, while, Vanaspati & allied industries, Property,
and Fertilizer were amongst the worst performers.
Major net selling was recorded by Mutual Funds with a net
sell of US$6.0 million. Individuals absorbed most of the selling with a net buy
of US$5.5 million.
Top performing scrips of the week were: YOUW, BNWM, MARI, SNGP
and APL, while top laggards included: PIBTL, AKBL, BAHL, FFC and ATRL
Looking ahead, market is expected to continue positive
momentum as global market concerns settle and macroeconomic indicators remain
favorable. The anticipated IMF Executive Board approval during the month is likely
to support the momentum.
Sectors benefiting from monetary easing and structural reforms would remain in the limelight. However, modest economic recovery would keep the upside in check for the cyclicals.
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