Stocks manage modest gains in a dull week
KARACHI: The benchmark index of the Pakistan Stock Exchange (PSX) remained flat throughout the outgoing week.
According to data compiled by AKD Securities, the KSE-100 index gained only 218 points or 0.5 per cent on a week-on-week basis to close at 44,118 points.
“This took the cumulative performance throughout 2021 to 0.8pc whereas the dollar-adjusted return currently stands at minus 9pc,” the brokerage house said.
Volumes dried up on a week-on-week basis as the daily average clocked in at 215 million shares versus 265m shares last week, showing an 18.7pc weekly drop.
The stock market performance during the outgoing week was dictated by the news flow relating to the possible resumption of the dormant International Monetary Fund programme, pre-conditions of the programme and the legislation that the country needs to pass in order to unlock the cash flows from the Washington-based lender.
One of the major news stories in the week under review was the current account deficit number for November where the gap stood at $1.9 billion as opposed to the expectation of $2.5bn. Other stories included the approval of textile and auto policies, missing the petroleum levy target by 41pc, $1.5bn loan approval by the Asian Development Bank for power-sector reforms and the increase in the base power tariff by 95 paisa.
Other events affecting the stock market were Unity Wilmar Agro increasing its stake in Unity Foods to 15.1pc, the number of cellular subscribers growing to 106.68m, Ghani Value Glass looking to enter the auto assembling business, auto financing hitting the Rs350bn mark and fertiliser shortages in Sindh and Punjab.
Top performers in the stock market during the outgoing week included Bannu Woollen Mills Ltd, which went up 20.4pc week-on-week, followed by Honda Atlas Cars Ltd (14.8pc), TRG Pakistan Ltd (11pc), Pakistan Stock Exchange Ltd (9.3pc) and Abbott Laboratories Pakistan Ltd (7.2pc).
Laggards on the stock market included Archroma Pakistan Ltd, which went down 15.1pc week-on-week, followed by Sapphire Fibres Ltd (13.1pc), Gatron Industries Ltd (12.9pc), Colgate-Palmolive Pakistan Ltd (11pc) and JDW Sugar Mills Ltd (7.4pc).
The top-performing sector was power generation that posted a rise of 4pc week-on-week on the news of the payment of outstanding dues. It was followed by pharmaceutical (3.7pc) and textile spinning (3pc) sectors.
Foreigners remained net buyers with an inflow of $3.7m, cushioning the sell-off by mutual funds ($3.6m) and individuals ($2.6m).
Published in Dawn, December 26th, 2021