Commercial Banks emerged as the outperformers during the week amid increased likelihood of further rate hikes in the upcoming Monetary Policy Announcement, gaining 3.6%WoW, followed by Pharmaceutical and Cement sectors, up 2.0%WoW and 1.6%WoW respectively, owing to revision in prices. Participation during the week improved with average daily traded volume rising to 342 million shares, from 266 million shares traded a week ago. Cement prices increased by Rs45/bag to Rs710/bag whereas Automobile sales jumped 68%YoY to 82,000 units.
Other major news flow during the week included: 1) GoP agreeing to withdraw GST exemptions worth Rs334 billion in order to revive IMF program, 2) Country receiving US$8 billion in remittances during 1QFY22, up 12.5 percent, 3) Country retiring foreign Sukuk worth US$1.0 billion, 4) Cotton prices surging to Rs14,500 per mound in local market, 5) Expats invested US$2.4 billion in RDA and 6) ENGRO announcing plan to invest up to US$1.8 billion under petrochemical policy.
Top performers of the market were: GATI, ABL, FFBL, HBL, and LOTCHEM, while laggards included: HASCOL, KAPCO, ANL, TRG and JLICL.
Top volume leaders included WTL, UNITY, TELE, TREET and HASCOL.
Flow wise, Insurance remained the major buyers with (net buy of US$12.2 million) followed by Mutual Funds (net buy of USD3.4 million) while Companies stood on the other side with (net sell of US$3.3 million) followed by Individuals (net sell of US$3.2 million).
With the onset of the result season, the market performance will be dictated by the corporate profitability where analysts expect the earnings to grow. Furthermore, the formal announcement of the new ISI head will also help settle jitters on the bourse.
The GoP is also under negotiations with IMF to revive its plan and any developments on the hike in energy tariffs and withdrawal of tax exemptions will also be closely tracked.
Market participants should look to invest in the Banks where possibility of further interest rate hikes could bring the sector into limelight. Major result announcements during next week include PTC, SSGC, PABC and UBL.
Pakistan Stock Exchange witnesses return of feel good factor
The feel good factor returned to Pakistan Stock Exchange (PSX). The benchmark index gained 345 points during the week to close at 44,822 level on Friday, up 0.8% WoW. Rising hope of revival of IMF program and civil-military leadership reaching consensus over the appointment of new ISI chief fueled the market performance.
Commercial Banks emerged as the outperformers during the week amid increased likelihood of further rate hikes in the upcoming Monetary Policy Announcement, gaining 3.6%WoW, followed by Pharmaceutical and Cement sectors, up 2.0%WoW and 1.6%WoW respectively, owing to revision in prices. Participation during the week improved with average daily traded volume rising to 342 million shares, from 266 million shares traded a week ago. Cement prices increased by Rs45/bag to Rs710/bag whereas Automobile sales jumped 68%YoY to 82,000 units.
Other major news flow during the week included: 1) GoP agreeing to withdraw GST exemptions worth Rs334 billion in order to revive IMF program, 2) Country receiving US$8 billion in remittances during 1QFY22, up 12.5 percent, 3) Country retiring foreign Sukuk worth US$1.0 billion, 4) Cotton prices surging to Rs14,500 per mound in local market, 5) Expats invested US$2.4 billion in RDA and 6) ENGRO announcing plan to invest up to US$1.8 billion under petrochemical policy.
Top performers of the market were: GATI, ABL, FFBL, HBL, and LOTCHEM, while laggards included: HASCOL, KAPCO, ANL, TRG and JLICL.
Top volume leaders included WTL, UNITY, TELE, TREET and HASCOL.
Flow wise, Insurance remained the major buyers with (net buy of US$12.2 million) followed by Mutual Funds (net buy of USD3.4 million) while Companies stood on the other side with (net sell of US$3.3 million) followed by Individuals (net sell of US$3.2 million).
With the onset of the result season, the market performance will be dictated by the corporate profitability where analysts expect the earnings to grow. Furthermore, the formal announcement of the new ISI head will also help settle jitters on the bourse.
The GoP is also under negotiations with IMF to revive its plan and any developments on the hike in energy tariffs and withdrawal of tax exemptions will also be closely tracked.
Market participants should look to invest in the Banks where possibility of further interest rate hikes could bring the sector into limelight. Major result announcements during next week include PTC, SSGC, PABC and UBL.
