Political Uncertainty brings volatility with Index down 1.4% WoW
Summary
Since the Opposition submits no-confidence motion against PM on March 8 ,,it took an ugly quandary on Thursday March 17 when around 24 disgruntled PTI Members of National Assembly came out in the open as they were found staying at the Sindh House in Islamabad. The stock market dipped 168.46 points on Thursday and 777.26 points on of Friday .
Pakistan Stock exchange remained lackluster as investors worried about political instability . The average volume during week declined by 19% to 174m. Lack of positive triggers amidst the opposition’s quest for a vote of no confidence against the PM led the market closed in negative. In addition ,global markets remained jittery after Russian war planes bombarded areas around which the NATO have been deployed.
The benchmark KSE-100 Index shed 623.36 points to close at 43,029.97 Trading activities declined to average 19% with volume of 174m. The market capitalization declined by Rs.176 bn and closed at Rs.7,274 T
Monday:KSE-100 index 43,366.8 Change (-286.44) Vol 105 m Mkt.Cap Rs.7,394T
Tuesday: KSE-100 index 43,719.82 Change (+352.93) Vol 189 m Mkt.Capt Rs.7,427 T
Wednesday: KSE-100 index 43,975.69 Change (+255.97) Vol 237 m Mkt.Capt.Rs.7,438T
Thursday: KSE-100 index 43,807.23 Change (-168.46) Vol 149 m Mkt. Capt. Rs7.405 T
Friday: KSE-100 index 43,029.97 Change (-777.26) Vol 180 m Mkt. Capt. Rs7,274 T
Participants /Activity
Foreigners were net seller $4.90 m during the week ; companies were seller $2.87 m, Banks were buyer $4.38m ; Mutual fund net seller $0.47m individuals net seller $3,14 m and Insurance were byer $2.0m
Volume leaders during the week were:TRG Pak 329m; TPL Properties 104m; Engro Ferttilisers 85 m; Maple Leaf Cement 69m; Treet Corp 61m; Unity Foods 48m; Ghani Global Holding 60m; Bank Alfalah 36m; Telecard and Sui Northern Gas 32m each; and Fauji Cement 18m
Participants: Co 341;Gain 136; Loss 184 and Unchanged 21
Triggers
-Dollar scales new peak against rupee: The rupee on Friday plunged to a fresh low at 180.57 on Friday against the US dollar after a day-on-day depreciation of 50 paisa in the open market. It was Rs.181.70 in the open-market.
-The data shows that the total inflows in equity, T-bills and PIBs during FY22 were around $637.7 while the outflows were $1.364 billions showing a net outflow of $726
-The foreign exchange reserves of SBP fell by $381 million to $15.831 billion during the week ended on March 11. The foreign exchange reserves were $22’283 while commercial bank holding were $6.451 bn.
-PSX MD slams govt for disincentivising capital market . Stock brokers seek tax relief in next budget.
-The U.S Central Bank on Wednesday projected the equivalent of quarter-per-centage –point rate increases at each of its six remaining policy meetings this year which would push its bench mark to a range between 1.75% to 2,00% by the end of 2022.
-Govt lifts all Covid-related restrictions across the country as “Pakistan has come close to eliminating the pandemic”
Conclusion
Pakistan and the United States (US) have re-launched the Trade and Investment Framework Agreement (TIFA) process to promote trade and investment for the benefit of both the countries, Assistant US Trade Representative ( AUSTR ) for South and Central Asia ,Christopher Wilson said. ” We succeeded in relaunching the TIFA…we feel quite satisfied” AUSTR said in a virtual press talk with select group of journalist after holding negotiations with ministry of commerce.
Raees Uddin Khan
Research & Development
Institute of Securities Management Research & Training (Pvt) Ltd
Karachi
Dated March19,2022