PSX Index Posts 0.67%WoW Decline

The benchmark index of Pakistan Stock Exchange showed varying trends throughout the week, ultimately closing with a modest 0.67%WoW loss at 78,045 points. However, market participation showed signs of recovery, with the average daily traded volume rising to 367.68 million share as against 345.10 million shares a week ago, up 6.5%WoW.

Meanwhile, the government reports progress in negotiations with China regarding the restructuring of power base loans, which is expected to support a reduction in tariffs.

The MSCI, in its August 2024 review transferred SAZEW to its Frontier Market Index, while adding six new stocks to MSCI’s Small Cap index.

July 2024 remittances remained robust, totaling US$3.0 billion, with Saudi Arabia being the highest contributor.

Foreign exchange reserves held by the central bank rose by US$119 million on a weekly basis to US$9.27 billion as of August 09, 2024.

In July 2024 Auto industry sales were up 30%YoY to 10,356 units, additionally Passenger cars & LCV’s sales were reported at 8,589 units, up 69%YoY.

The MS and HSD fuel prices have decreased during the week. Concurrently, Petroleum products imports witnessed a decrease of 27%MoM, reported at US$499 million for July 2024.

On the currency front, PKR largely remained stable against the greenback throughout the week to close at 278.54/US$ on Friday.

Other major news flow during the week included: 1) Refining sector sets massive furnace oil export target, 2) External debt to GDP ratio hits 6-year low, 3) Internet firewall could cost economy US$300 million, 4) No Cabinet approval to urea import proposal and 5) Five mineral projects picked for investment.

According to AKD Securities Property, Textile Weaving, Jute, Textile spinning & Exchange Traded Funds were amongst the best performers, while Vanaspati & Allied Industries, Automobile Assemblers, Woollen, Leasing Companies & Refinery were amongst the laggards.

Major selling was recorded by Companies with a net sell of US$4.37 million. Individuals absorbed most of the selling with a net buy of US$7.18 million.

Top performing scrips of the week were: YOUW, JVDC, NPL, GHGL and MARI, while laggards included: KAPCO, NBP, PGLC, NRL and THALL.

Going forward, the 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.