KSE-100 index continues positive drive; gain 3.67% WoW
Summary
An interesting situation in Pakistan Stock Exchange (PSX) has developed this week where the index climbed up 1601 points despite the fact that Prime Minister seemed to have lost the majority vote in the parliament. The trade volume increased by 116% from average of 144 million to 162 million . There was a rally on buying of third tier shares and stocks shoot up 505 points Tuesday on aggressive buying. The cement sector was once again in the lime light owing to a reduction in the international coal prices . The healthy participation of investors participation in the market stayed healthy due to notable decline in the oil prices. The negativity in the market is further devaluation of rupee against the dollar.
The benchmark KSE-100 Index added 1600.96 points to close at 45,152.11 Trading activities increased by 116% to average volume of 310m. The market capitalization added Rs.242bn and closed at Rs.7,600 T
Monday: KSE-100 index 43,933.56 Change (+382.41) Vol 133 m Mkt.Cap Rs.7,417T
Tuesday: KSE-100 index 44,438.70 Change (+505.14) Vol 269 m Mkt.Capt Rs.7,483T
Wednesday: KSE-100 index 44,337.56 Change -101.14 Vol.344 m Mkt.Capt. Rs.7,481 T
Thursday: KSE-100 index 44,928.83 Change (+591.27) Vol 416m Mkt. Capt. Rs7.583T
Friday: KSE-100 index 45,152.11 Change (+1600.96) Vol 389 m Mkt. Capt. Rs7,600 T
Participants /Activity
Foreigners were net seller $15.35 m during the week ;companies were seller $0.57 m, Banks were byer $15.69m ; Mutual fund net seller $4.58m individuals net buyer $7.49 m
Volume leaders during the week were:
participants: Co 354;Gain 216; Loss 113 and Unchanged 25
Triggers.
-Rupee falls below 184 against dollar. The strong demand for US dollars kept the rupee under pressure which plunjed to an all time low to Rs.184.09 by losing another 61 paisa in the interbank market on Friday .
-The prices of consumer goods slightly went up to 12.27 per cent in March from 12.2 per cent from the previous month on the back of an increase of perishable products.
– Exports cross $23bn mark. In absolute terms ,the export proceeds reached $23.332 billionin July-March from $18.688 bn in the correspondence period last year.
– Profits and dividends outflow rises to $1,14 bn on foreign investment increased by 9 per cent or $96 million to $1.146 billion during the first eight months of this fiscal year ,reported SBP on Tuesday,
-The SBP announced that its foreign exchange reserves dropped to $12.047 bn during the week ended on March 25 due to major repayment of Chinese loans while the rest was regular debt servicing . Foreign Minister Shah Mehmood Qureshi ;who is in China said his Chinese counter part has assured him that Beijing has agreed in principle for granting rollover of $2.4 bn in commercial loan to Pakistan
Conclusion
PM in his nearly hour-long address to the nation on Thursday and later interview with ARY channel is not going to go down with out a fight. He has rejected the idea of resignation. It seems that there is long drawn legal battle ahead and the political uncertainty for investors to continue. in stock exchange.
Raees Uddin Khan
Research & Development
Institute of Securities Management Research & Training (Pvt) Ltd
Karachi
Dated April2,2022