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Stocks end negative in lackluster trade

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CARACHI:

The Pakistan Stock Exchange (PSX) ended the week on a negative note as the benchmark KSE-100 index fell 286 points to 41,344.01 as many investors remained on the sidelines.

The KSE-100 index started the week under pressure due to rising inflation and closed in the red zone.

The week started on a bearish note as a further depreciation of the rupiah against the US dollar rattled already pessimistic sentiment due to the delay in resuming the International Monetary Fund (IMF) bailout programme.

However, value buying lifted the KSE-100 index after a lackluster trading session on concerns over an expected rate hike amid the monetary policy announcement.

However, the KSE-100 index failed to end the week in the green as the market stood at 41,344 points, down 286 points (or 0.7%) week on week. ‘other.

Volumes remained weak throughout the week in the absence of positive triggers as investors remained on
margins.

Pakistani stocks ended the week on the negative note at 41,344, falling 0.7% week-on-week, JS Global analyst Faisal Irfan said.

Volumes remained dry with an average of 90 million shares traded per day during the week, registering a decline of 55% on a weekly basis.

The main underperformers during the week were refining, engineering and
fertilizer sectors.

Investors remained on the sidelines due to the lack of positive triggers and further delays in the IMF staff-level deal, the analyst said.

Additionally, the June CPI hit a 13-year high of 21.32% YoY, versus a market expectation of around 18% YoY.

Along with that, the trade deficit for June 2022 reached a five-month high of $4.85 billion, up 34% year-on-year and 20% month-on-month, bringing the FY22 trade deficit to $48.35 billion, up 55% year-on-year. -on-year.

On the international front, oil prices suffered a major correction, with Brent falling 12% week-on-week to close at $100 a barrel amid fears of a slowdown in demand due to the risk of recession have made themselves felt.

On the news front, the oil division has reportedly proposed a gasoline price hike of 42% to 82% for various segments of the industry.

Arif Habib Limited, in its report, said the market started on a negative note this week amid concerns over the resumption of the IMF program.

Additionally, the Pakistani Rupee climbed Rs3.06 against the US Dollar, closing the week at Rs207.91.

Additionally, cement withdrawals were down 7.9% year-on-year in FY22. MS and HSD sales in June 2022 were down 12% and 16% month-over-month, respectively.

Meanwhile, the 4% reduction in the price of Arab Light gave investors some breathing room and cushioned the overall decline.

The market closed at 41,344 points, losing 286 points (down 0.7%) week-over-week.

In terms of sectors, the positive contribution came from technology and communication (27 points), oil and gas marketing companies (18 points), oil and gas exploration companies (13 points), closed-end mutual funds (4 points) and real estate investment. Confidence (3 points).

On the other hand, the sectors which contributed negatively are Cement (97 points), Fertilizers (57 points), Commercial Banks (30 points), Chemicals (27 points) and Energy Production and Distribution (24 points) .

Meanwhile, positive equity contributors were Oil and Gas Development Company (39 points), Pakistan Petroleum (27 points), TRG Pakistan (15 points), Sui Northern Gas Pipelines (14 points) and Habib Bank (13 points). ).

However, the negative contribution came from Lucky Cement (49 points), Pakistan Oilfields (39 points), Engro Polymer and Chemicals (34 points), Bank AL Habib (33 points) and Engro Corporation.
(33points).

Foreign purchases were seen this week, reaching $1.63 million versus a net purchase of $1.52 million last week.

Significant purchases were seen in all other sectors ($0.63M) and in technology ($0.56M).

On the local front, sales were reported by mutual funds ($2.91 million), followed by banks ($2.20 million).

Average volumes reached 90 million shares (down 55% on WoW) while the average traded value was $15 million (down 52% on WoW).

Among other important news, SBP extends the implementation deadline of IFRS-9 till 1st January 2023, Bank advances to the private sector increase by 142%, tariff hike by Rs 9.42/ unit approved for KE and increased urea sales 73% YoM. .

Published in The Express Tribune, July 9e2022.

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