On WoW basis, the market also witnessed slight decline this week following flat performance of last week. However, this time around, market volumes also remained on the lower side.
KSE100 index was down only 24pts (-0.18%) WoW to close at 13,273pts.
“The week started with a huge decline of 219pts in its first trading session owing to profit-taking witnessed from the local participants taking the market to recent lows of 13,077pts,” said Mazhar A. Sabir, an analyst at InvestcCap.
However, on the following day, the market recovered pulling back 225pts on the back of foreign and local interest mainly in E&P, cement, fertilizer and the Banking sectors stocks. However, in the last two trading sessions, the market remained dull and hovered in the range of 13,200pts and 13,300pts level. On the economic facade, country’s current account deficit ballooned to USD2.95bn in 8MFY12.
However, on the other hand, WB approved funds of USD1.09bn for energy and irrigation systems, which would create fresh liquidity in the system. On the political front, the verdict on the PM-related issue continued to be held during the week, which kept investors on the sideline.
As a result, average traded value during the week stood at USD75.1mn (down 4.4%WoW), while average traded volumes were at 249mn shares (down 38% WoW). On the other hand, foreign inflows to equities continued to be in green and stood at USD2.9mn against ~USD1.6mn recorded last week, showing foreign interest in Pak equities.
Market’s open interest position during the week declined by PKR226mn (down 9.8% WoW) to stand at PKR2.1bn. Futures volumes followed the same path as they also massively declined by 11.2% WoW to 11.7mn shares. However, futures spreads went up by 1,074bps WoW to 23.27%. The top-5 scrips at the futures counter holding 67% of the total open interest were ENGRO, FFC, DGKC , POL and OGDC.
“We expect coming week to be the crucial one for the market as developments on the much-awaited Presidential Order will be eagerly eyed, which is deemed vital for sustained market activity,” said Sabir.
Any positive development in this regard would act as a trigger for the market, he added. However, any delay on the same would render serious impacts on equities’ values as well as volumes and liquidity, he warned.
