Weekly Economic Roundup – Mettis Global News
Feb. 13, 2022 (MLN): The bulls took control of the stock market again this week, as the benchmark KSE 100 jumped 170 points or 0.37% WoW to settle at the 46,079 level.
In USD terms, the index was up 0.24% from last week.
Investor optimism was driven by easing pressure on the current account deficit with the release of a $1 billion tranche from the IMF and the expected takeover of the Saudi oil facility.
While another thing that kept the index up was improving earnings from listed companies as well as good dividend payouts.
Furthermore, the stability of PKR against the US dollar, the approval of the long-awaited textile policy by ECC after incorporation of certain amendments, and the contraction of Pakistan’s budget deficit by 2.1% during 1HCY21, reinforced the favorable trend.
From a sector perspective, Fertilizers, Investment Banks, Auto Assemblers, Oil & Gas Exploration Companies, Fertilizers and Commercial Banks kept the index in green territory adding 98, 63, 55 respectively. , 40 and 38 index points. .
In contrast to this, the technology, cement, oil and gas marketing companies, insurance, and electrical and cable products sectors collectively ripped 218 points off the stock market during the week. Cement remained under pressure during the week as coal prices continued to rise on the back of increased demand for coal-fired power generation around the world.
Regarding certificates, ENGRO, DAWH, MEBL, EPCL and FFC were the best performing stocks during the week, as they added 273 points to the index, while PSO, AICL, SYS, MCB and PAEL eroded 148 index points.
Meanwhile, the market capitalization of KSE All Share increased by Rs23.48 billion or 0.3% over the week, being recorded at Rs7.87 trillion from a market cap of Rs7.85tr recorded last week. .
In terms of flows, foreigners were the net sellers during the week, unloading stocks worth $5.9 million compared to a net sale of $4.4 million last week. . Strong sales were seen in technology ($3.2 million) and all other sectors ($1.6 million).
On the local side, the majority of purchases were reported by organizations and individuals for $11.1 million and $3.1 million, respectively. However, mutual funds and insurance companies stood on the other side with net sales of $4.5 million and $3.7 million respectively.
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