KARACHI: Traders of Pakistan Stock Exchange (PSX) to keep eye on developing political and economic situations during next week.
Keeping in view the developments on the political and financial front, the market is expected to remain range bound, said analysts at Arif Habib Limited.
However , they believed market would also be keenly following developments upon external front with any inflows by any bilateral/multi-lateral financial institutions or from any kind of friendly countries likely to trigger positive momentum.
The benchmark KSE-100 index of PSX is currently trading at a PER of 4. 0x (2023) compared to Asia Pac regional average of 12. 8x while offering a dividend yield of 10. 2 per cent versus 2. 8 per cent offered by the particular region.
The market commenced on a negative note this week, carrying forward the energy from last week owing to concerns over weak economic indicators.
The marketplace briefly turned positive given Asian Development Bank (ADB) approved $ 554 million financial package for rehabilitation work post floods.
Moreover, the International Monetary Fund (IMF) shared that the discussion with Pakistan related to the ninth review was productive, keeping the impetus positive.
Nevertheless , the market turned negative again in the latter part of the week due to increase in political noise.
Furthermore, remittances declined simply by 14 for each cent YoY in November 2022. In addition to this, Large Scale Manufacturing Index (LSMI) output plummeted by 3. 6 per penny MoM | 7. 75 per cent YoY during October 2022.
Moreover, official foreign exchange reserves associated with State Bank of Pakistan (SBP) depicted a dip of dollar 15 mil, clocking in $ six. 64 billion.
With this, Pakistani Rupee (PKR) depreciated by PKR 0. 54 | 0. 24 per cent WoW against the particular dollar, settling at PKR 224. 94.
The catalog closed from 41, 301 points, losing 397 points (down simply by 0. 95 per cent) WoW.
Sector-wise negative contributions came from i) Banks (232 points), ii) Chemical (92 points), iii) Automobile Assembler (83 points), iv) Power (68 points) and v) Food and Personal Care Products (61 points).
Whereas, the sectors which contributed positively were i) Miscellaneous (164 points) plus ii) Fertilizer (110 points). Scrip-wise bad contributors were MTL (77 points), UBL (70 points), HUBC (68 points), BAHL (58 points) and LOTCHEM (44 points).
Meanwhile, scrip-wise positive contribution came from PSEL (167 points), SYS (132 points), ENGRO (115 points), PAKT (20 points) and OGDC (10 points).
Foreigners selling continued during this 7 days, clocking inside at $ 9. 6 million in comparison to a net sell of $ six. 3 million last week. Major selling was witnessed in Commercial Bank ($ 12. 0 million) and Cement ($ 0. four million).
On the local front, buying was reported by Banks/DFIs ($ 12. 8 million) followed simply by Companies ($ 6. 2 million). Average volumes clocked in with 162 mil shares (down by ten % WoW) while average value traded settled on $ 20 million (up by 10 percent WoW).