April 23, 2022 (MLN): This week, domestic stocks came under heavy selling pressure, after peaking at the 46,602 level. on positive feelings about new government formed by the coalition parties.
However, as macroeconomic concerns to reemerged, the market experienced a downward correction with KSE-100 losing 1,049 points or down 2.25% during the the week and falling to the level of 45,553 points. In USD, the index was down 4.9% WoW.
The market started the week oa positive note, as investors welcomed the news of the formal Pakistan-IMF dialogue on the revival of the EFF, to relax increasing pressure on foreign exchange reserves and addressing concerns about the funding gap.
However, the positive dynamic could not hold out for long in the face of economic concerns such as the depreciation of PKR (closing of the week at Rs 186.70) and resumption of the IMF program.
Meanwhile, the growing trade deficit expanded to $3.6 billion on March 22, exerting more pressure on the scripts. Besides, a downward revision of the 4% growth target forecast by the World Bank and a rise in Treasury bills yields up to 70 basis points further dampened sentiment, according to a note from Arif Habib Limited.
During the week, the stock market witnessed all five sessions in favor of the bear. The KSE-100 index oscillated between the high and low of the 46,970 and 45,505 levels, respectively, before settling the week to 45,553 levels.
From a sector perspective, commercial banks, cement, technology, power generation and distribution and miscellaneous kept the index in red territory by snatching 396, 219, 100, 74 and 72 points respectively from the hint.
Contrary to this, oil and gas exploration companies, fertilizers, textile chemical spinning and real estate investment trust collectively contributed 152 points to the stock market during the week.
Regarding certificates, HBL, BAHL, LUCK, SYS and PSEL were the worst performing stocks during the week, taking 90, 85, 70, 66 and 66 points respectively from the index. while COLG, FABL, FATIMA ABL and DCR added 199 points to the index.
Meanwhile, the market capitalization of KSE All Share decreased by 149.3 billion rupees or 1.93% during the week, being recorded at 7.6 trillion rupees against a market cap of 7.75. tr recorded last week.
In terms of flows, foreigners were the net sellers over the week, selling shares worth $0.97 million versus net buying $1.3 million last week. Sector-wise, strong sales were seen in commercial banking ($1.74 million) and food and personal care products ($0.14 million).
On the local side, the majority of sales were reported by mutual funds and banks for $6 million and $1.2 million, respectively. However, individuals stood on the other side with net purchases of $7 million.
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