Pakistan Stock Exchange witnesses 63.4%WoW increase in average daily turnover

Pakistan Stock Exchange (PSX) began the week ended on 27th November 2020 on negative sentiment with government mulling over measures to contain rising cases of COVID-19, hinting a complete lockdown. To add, IMF hinting at government’s need to undertake unpopular measures (electricity and gas rate hikes, targeting higher tax collection, etc.) to resume the IMF program further dampened the sentiments. Decision of State Bank of Pakistan (SBP) to leave interest rate unchanged at 7% resulted in some exuberance among investors. A rise in international oil prices on the back of mass availability of vaccines in 2021 brought interest in index heavy weight E&Ps in the remaining trading sessions, where profit taking in the last trading session pared some of the gains. The benchmark closed the week at 40,807 points, up 1.54% during the outgoing week. Average daily turnover during the week increased to 279.8 million shares, up 63.4%WoW. Major news flow during the outgoing week included: 1) Pakistan securing US$800 million in debt relief from 14 members of the richest club of G-20 countries, as it still awaits ratification by remaining six countries, 2) IMF talks focusing on renewed tax thrust, 3) COVID-19 compelling the government to close educational institutions, 4) SBP keeping policy rate unchanged at 7 percent, 5) IPPs refusing to accept Rs400 billion proposed payment in three installments, 6) government hinting at increasing power, gas tariff in phases and 7) SBP’s foreign exchange reserves crossing US$13 billion mark. Top performers in the outgoing week included: TRG, SYS, POL, PSX and LOTCHEM, whereas laggards were: FCEPL, IGIHL, FFBL, GATM and SNGP. Developments on the IMF program resumption front, the COVID-19 situation and global crude oil price movements are likely to sway the market sentiments, going forward. Resurgence in energy prices remain double edged sword, with interest in energy chain and banking sector likely to continue.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.