KARACHI (National Times)- Bulls charged at the Pakistan Stock Exchange (PSX) as the KSE-100 surpassed the 42,000 level in the outgoing week to finish with a gain of 956 points or 2.3%.<\/p>\n
Interest in cyclical and sideboard sectors kept the market buoyant as investor participation remained strong. The index maintained a healthy momentum on the back of declining yearly and monthly inflation and the strengthening rupee against the US dollar.<\/p>\n
Additionally, sector-specific developments also spurred buying interest in select stocks, which further fuelled the rally. The market finished four out of the five sessions in green to settle at 42,085 points.<\/p>\n
Bulls dominate PSX as KSE-100 shoots past 42,000 at week close
\nMonday witnessed volatile trading as investors cherished the lower consumer price index inflation number for September 2022 \u2014 which came in at 23.2% over the weekend. Additionally, the rupee\u2019s winning streak against the US dollar in the interbank market revived investor optimism.<\/p>\n
The bullish rally continued to grip the stock market on Tuesday as investors took fresh positions after the trade deficit contracted 21.4% year-on-year to $9.2 billion in the July-September quarter of the current fiscal year, which gave a boost to the positive momentum.<\/p>\n
The rally became stronger on Wednesday as the PSX registered significantly high volumes of 636 million shares as market players engaged extensively in stock trading.<\/p>\n
Sentiments that remained bullish on Thursday helped the KSE-100 index extend the rally from the previous day and renewed investor interest pushed the benchmark KSE-100 index above the 42,000-point mark.<\/p>\n
The market continued its bullish momentum as investors cherished a drop in cut-off yields in the auction of T-bills.<\/p>\n
The market also expected positive developments after the Asian Development Bank assured Pakistan that it would give $2.3-2.5 billion for flood relief, providing vital support for flood relief.<\/p>\n
Unfortunately, the four-day buying spree ended as Moody\u2019s report sparked concerns among investors, who remained cautious while trading stocks. The rating agency downgraded Pakistan\u2019s credit rating to Caa1 from B3.<\/p>\n
The stock market expected further deterioration in the economic outlook of the country. <\/p>\n
Other major developments during the week were: SBP\u2019s reserves fall by $106 million, Roshan Digital Account inflows clock in $5.14 billion in 25 months, Atlas Group exports auto parts worth $2 million, 12,000 bikes in six months, and K-Electric seeks exemption from expected credit losses (ECL) for two years.<\/p>\n
Meanwhile, foreign buying continued this week, clocking in at $4.7 million against a net buy of $0.15 million recorded last week. Buying was witnessed in technology ($6 million), power (0.4 million), and cement ($0.3 million).<\/p>\n
On the domestic front, major selling was reported by insurance ($5.7 million), followed by banks and development finance institutions ($4.4 million).<\/p>\n
During the week under review, average volumes clocked in at 434 million shares (up by 118% week-on-week), while the average value traded settled at $48 million (up by 32% week-on-week).<\/p>\n
Major gainers and losers of the week
\nSector-wise positive contributions came from technology and communication (+360 points), power generation and distribution (+251 points), cement (+129 points), fertiliser (+115 points), and chemical (+44 points)<\/p>\n
On the flip side, negative contributions came from miscellaneous (-44 points) and paper and board (-6 points)<\/p>\n
Scrip-wise major gainers were Hubco (+227 points), TRG Pakistan (+171 points), Systems Limited (+170 points), Engro Corporation (+66 points), and Engro Fertiliser (+61 points).<\/p>\n
Meanwhile, losers were Pakistan Petroleum (-48 points), Pakistan Services (-41 points), MCB (-26 points), UBL (-24 points), and Fatima Fetiliser (-11 points).<\/p>\n
Outlook for next week
\nA report from Arif Habib Limited stated that the market is expected to remain positive in the upcoming week.<\/p>\n
\u201cWith the Monetary Policy Committee meeting on Monday, the market is expecting a status quo,\u201d it said, adding an indication of a stable parity will also aid sentiment at the index.<\/p>\n
\u201cThe KSE-100 is currently trading at a PER of 4.2x (2023) compared to the Asia-Pacific regional average of 12.1x while offering a dividend yield of 9.8% versus 2.9% offered by the region,\u201d the brokerage house stated.<\/p>\n","protected":false},"excerpt":{"rendered":"
KARACHI (National Times)- Bulls charged at the Pakistan Stock Exchange (PSX) as the KSE-100 surpassed the 42,000 level in the outgoing week to finish with a gain of 956 points or 2.3%. Interest in cyclical and sideboard sectors kept the market buoyant as investor participation remained strong. The index maintained a healthy momentum on the […]<\/p>\n","protected":false},"author":1,"featured_media":45056,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-45053","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","entry"],"yoast_head":"\n