Bearish sentiments were witnessed in the Pakistan Stock Exchange during the week concluded on 7-September-2021 as panic selling was observed over Pakistan’s reclassification from MSCI Emerging Market Index to Frontier index.
The average daily turnover declined by 6.7%WoW to 400mn shares while the KSE-100 index declined by 562points to close at 46,636 points.
Investors were also concerned over the upcoming IMF review and persistent decline in Rupee Value vis-a-vis Dollar which touched a record low of Rs.170/US$ in Open Market.
High dollar cost is expected to induce higher inflation in the economy which is expected to eat up corporate profitability.
The Market sentiments also remained suppressed over upcoming monetary policy on Monday and higher current account deficit of US$1.48bn in August-2021. Furthermore, Decline in LSM production of 4.5%MoM, ii) Petroleum price increase, delay in refinery policy also contributed to stale performance of the market.
Top performers of the market included i) FABL (+10.4% as Certainty of Islamic Conversion garnered Interest), ii) AKBL (+10.1%), iii) SCBPL (+9.6%), iv) UBL (+6.9%). Meanwhile following stocks lost ground during the week. ISL (-12.0%), ii) COLG (-10.8%), iii) INIL (-9.1%), iv) POL (-8.7%), and v) PIOC (-8.0%).
NCCPL data shows that Individuals bought US$16.8mn worth of securities on net basis followed by Banks/DFIs (US$7.3mn), Insurance companies (US$0.9mn) while foreigners remained net sellers with a net outflow of US$10.9mn followed by Companies (US$6.4mn), Brokers (US$5.6mn) and Mutual Funds (US$2.2mn).
Market Outlook
Market is expected to remain range bound as Investors recalibrate their positions keeping in view the changing Macro Economic Scenario.
Sector Rotation is going on an we are witnessing outflow from Cement Sectors being diverted to Banking Sector as Interest Rate Hike is imminent.
Investors remain away from Oil and Gas stocks which trade at their lowest level in a year. While activity in refineries has also remained limited due to delay in Refinery Policy.
In upcoming week, Activity is expected to remain concentrated in Banks, Insurance, Pharmaceutical and Steel whil Autos and Cement sector is expected to remain week.
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