Spike, Swoon and repeat was the cycle witnessed at Pakistan Stock Exchange (PSX) during the week, since market sentiments were primarily dominated by the budget excitement, economic survey and partial uncertainty over Government-IMF talks on taxes.
The week began with the 92 points gain at the kse-100 index as investors cheered completion Rs89.2 billion transactions-in the form of the first installment of payments to 20 independent power producers (IPPSs) from the Rs403bn committed by the government under a settlement agreement with 46 IPPs signed in February.
However, profit taking began right on Monday, which was extended into the following two sessions, over the mounting uncertainty on the deadlock which persisted between the government and the IMFon the budgetary targets, especially taking additional taxation measures to fetch Rs300 billion, hiking petroleum levy and exact timeframe for increasing electricity tariff. Selling pressure on Tuesday and Wednesday resulted in the index to breach 48,000 level to touch intra week low of 47,778 level.
But, on Thursday the market rallied to recover its lost ground over a strong economic survey unveiled by Finance Minister Shaukat Tarin, which predicted that the PSX will maintain its current growth trajectory in the next fiscal year starting July 1, 2021.
The survey highlighted that Refinery, technology and communication, engineering, glass and ceramics, and cement sectors led the rally during outgoing fiscal year 2021.The all-time high volumes of 2.21 billion shares recorded in May and increase in the number of new companies making their shares available for trade at the PSX suggest the appetite for investment in share market is on the rise, according to the Economic Survey 2020-21.
The market sentiments were boosted over Shaukat Tareen’s statement which noted that Pakistan Stock Exchange has emerged as the best performing market in Asia and fourth best performing market in the world,which also added that the benchmark index recovered by 40% (or 13,830 points) over the last 11-month period.
Moreover, investors also cheered State Bank of Pakistan’s data,which revealed that Remittances from Pakistani workers employed abroad exceeded $2 billion for the 12th month in a row in May 2021.
However, on Friday the index marked consolidation during a flip-flop session to close the week at 48,304 level.
During the week, average trading volume decreased by 3.8 percent to settle at 1,079 million shares, while the traded value declined by 15.2 percent to average at $162 million.
Among the scrips, Pakistan Telecommunication Company ltd was the top performer, which gained 16.7 pc followed by Unity Foods limited which gained 7.8pc, PSX gained 6.7pc, Century Papers and Board Mills Limited gained 6.3pc and Indus Motor Company limited gained 6.3pc.
Among the top losers, International Industries limited posted most losses, and retreated 6.6pc followed by Pakistan State Oil and AGO Limited each lost 4.2pc, while Healthcare Services Acquisition Corp lost 3.8pc.
According to the National Clearing Company of Pakistan Limited (NCCPL),among foreign investors’ net trade; foreign individuals bought $0.1 million worth of equities, foreign corporates offloaded $6.7 million worth of stocks and overseas Pakistanis sold $0.84 million of stocks, taking the total net sale to about $7.47 million worth of stocks.
Among the local investors, Banks led the selling chart, followed by Insurance Companies and Individuals, posting a net sale of $10.36 million, $4.8 million and $2.7 million worth of stock respectively.
However, Mutual Funds,Companies and other organizations led the buying chart, mopping at net $14.86million, $9.1 million and $2.24 million worth of equities.
Now, with all the excitement for the the upcoming week, the PTI’ government’s third budget which was presented on Friday, near the index’s closing bell, being termed as a pro-growth budget; may provide enough catalyst to push the Kse-100 index above the 50K mark, in most of the Market analysts’ view.