Weekly report: Rupee at 5 month high, PSX loses 634 points
Last updated on: 17 October,2020 03:09 pm
KSE-100 index dropped more than 634.41 points during the week
KARACHI (Dunya News) - Bears regain control of bourse, KSE-100 index dropped more than 634.41 points during the week on political uncertainty.
Bourse started the week at negative note as index dropped more than 588 points on Monday after the Asia Pacific Group (APG), a sub-group of FATF, declared to retain Pakistan on enhanced follow-up list in its recently published follow-up report (FUR-Sept).
Rising political noise weighed down on investors’ sentiments during the week after opposition share roadmap of anti-government rally. Market participants’ confidence was also weakened due to uptrend in fresh Coronavirus cases in Sindh, raising fears of mini smart lockdowns in province.
During the week, KSE-100 index witnessed two bullish and three bearish trading sessions, where it cumulatively lost 1.6% compared to last week. During the week the average traded volume in bourse stood at 187 million shares, while the average value stood at Rs 7.3 billion.
The USDPKR parity has recovered from the 5- month low of PKR168.80 to the high of PKR162/USD in the interbank market. During the open market as well the rupee staged a recovery almost one rupee to close at 163 rupees.
Foreign selling continued this week clocking-in at 2.7 million dollars compared to a net sell of 7.5 million dollars last week. Selling was witnessed in E&P 2.8 million dollars and Cement 0.8 million dollars.
On the domestic front, major buying was reported by Banks / DFIs 7.6 million dollars and Insurance Companies 2.4 million dollars.
“With respect to next week sentiments, we expect the correction to continue in the Stock Market as the investors will be more concerned towards the decision of FATF”, said Muhammad Saeed Khalid, head of research at Shajar Capital.
Further, we also believe the upcoming economic numbers along with the Balance of Payment numbers will likely play an important role in recovering volumetric activity in the Stock Market, he said.
Saeed Khalid said as the recovery may likely be witnessed from the 1QFY21 result season as recovery in the macros will resultantly improve profitability of the manufacturing industries.
Story by: Haris Zamir