Stocks lose 745 points amid covid-19 spike
Summary
Pakistan Stock Exchange witnessed a negative trend during the outgoing week ending on January 21, 2022 on the back of rising coronavirus cases in the country and rising oil prices in the international market. The benchmark KSE-100 Index decreased by 1.6% week-on week and closed at 45,018.28. Trading activities also declined as average daily volume on ready counter decreased by 43% WoW to average 201m shares.
The market gained 192 points on Friday as Pakistan has revised up its rate for 2020-21 to 5.37 from 3.9% as announced by the minister for planning and development said on Thursday.
Monday: KSE-100 index 45,612.20 Change (-151.25) Vol 174 m Mkt.CapRs.7,822 T
Tuesday: KSE-100 index 45,507.41 Change (-104,79) Vol 165m Mkt.Capt Rs.7,804 T
Wednesday: KSE-100 index 44,833.43 Change (-673.98) Vol 237m Mkt.Capt.Rs.7,704T
Thursday: KSE-100 index 44,825.97 Change (-7.46) Vol 254 m Mkt. Capt. Rs7.700 T
Friday: KSE-100 index 45,018.28 Change (+192.31) Vol 176 m Mkt. Capt. Rs7,732 T
Participants/activity
Foreigners were net seller of $2.09m during the week, companies were seller $10.32m, Banks were buyers $5.92m, Mutual fund net seller $7.80m, individuals net buyer $12.37m and Insurance were buyer $0.45m.
Volume leaders during the week were: World Tele Com 11m; TRG Pak 80m; Cnergico Ok 62m; Telecard Ltd 49m; Ghani Global Holding 25m; Jahangir Siddiqui Co. Ltd 14m; K-Electric 11m; Hascol Petroleum 9m; Hub Power 8m and Alfalah Consumer 6m.
Participants: Co 347; Gain 132; Loss 196 and Unchanged 19.
Triggers
– Foreign exchange reserves of SBP decreased by $562 million to $17.03 billion during the week ending on Jan 14. The dip was due to servicing of international debt repayment. The holding of Commercial Bank were $6.31 billion. The overall reserves were $23.34 billion.
– The country is preparing to launch a $1-1.5 billion Islamic bond in the international market.
– Fitch Ratings has assigned Pakistan’s proposed US-dollars sovereign global Sukuk certificates to be issued through the Pakistan Global Sukuk Program Company Limited, a “B-” rating. Meanwhile Moody’s Investors Service has assigned a “B3” backed senior unsecured rating to the proposed US dollar denominated trust certificates (Sukuk) issuance by the Government of Pakistan.
– The International Monetary Fund (IMF) Executive Board will take the sixth review of the $6 billion Extended Fund Facility on the agenda in its meeting scheduled for January 28.
– State Bank of Pakistan Governor will announce the monetary policy on January 24. Some researchers see an increase in the policy rate while others believe that a minimum change could be possible. A group of bankers forecast no change in the rate despite rising inflation.
– Foreign Direct Investment increases to 20pc in July-December. Reflecting improvement in the investment environment. China was the biggest investors with the inflow amounting to $306 million. If the IMF releases funds it will be a signal of reduced risk for foreign investors.
– Auto financing jumps by Rs.98bn in 2021.
– Six investors pre-qualified for PSM revival.
Conclusion
Government revises up 2020-21 GDP to 5.37pc, which is the second time the GDP rate for 2020-21 has been revised from an initial 2.3% set in the 2020 annual budget than later to 3.9%.
The country’s statistics bureau has also shifted its economy’s base line, which pushed the figure up further to 5.57%, a statement from the planning ministry said. With the new 2015-16 base line, it said, Pakistan GDP has reached at $346.76 billion with a per capita income of $1,666.
Raees Uddin Khan,
Research & Development, Institute of Securities Management Research & Training (Pvt) Ltd, Karachi
Dated: Jan 22, 2022