Daily Times

This was Pakistan’s worst quarterly fall in eight quarters as the benchmark KSE-100 Index fell by 8.0pc. A 17pc decline in US dollars occurred in the second quarter of 2022 on the index’s USD value.

In FY22, the benchmark KSE-100 Index had a decrease of 12pc, compared to a growth of 38pc in FY21. The market was pulled down during the third quarter by factors such as delays in the programme being run by the IMF, increased political uncertainty, inflationary pressures, and an expanding current account deficit (CAD).

In this period, Pakistan did not rank among the best or worst in the world. The worst-performing markets in the third quarter were Sri Lanka (down 33pc), Namibia (down 27pc), and Peru (down 27pc), while Lebanon (up 45pc), Russia (up 33pc), and Jordan (up 11pc) performed best. In USD terms, these are the total returns.

As of the second quarter of 2022, the average daily trading volume in the Cash and Ready market decreased by 63% on a yearly basis, but climbed by 9.0% on a quarterly basis and reached 250m shares. At Rs7.2b daily, the average transacted value fell by 64% YoY while remaining unchanged on a quarter-to-quarter basis in the second quarter of 2022.

There was a 28pc drop in average daily volumes in the Futures market on a year-over-year basis, but this was offset by a 7.0pc increase in daily volumes throughout the quarter. The daily average traded value of Rs3.4b was down 65% year-on-year and 10% quarter-on-quarter.

A GEMSPNL IPO raised Rs475m at a strike price of Rs22.5/share in the second quarter of 2022, although there was no IPO on the main board in the second quarter of 2022.

During the quarter, mutual funds accounted for the majority of net sales at $59m, followed by insurance at $58m, foreign corporations at $38m, and brokers at $3m. Individuals, Banks, and Companies purchased $76m, $34m, and $29m, respectively, from the market.

Cycle-sensitive industries such as cement, auto parts, and engineering all underperformed the market in Q1. Refining and oil and gas marketing were two of the best-performing industries, thanks to rising refinery margins and reports of rising gas prices.