Investors indulged in profit taking after index remained on the upward trajectory for last 6 weeks. After a significant result beat by CHCC, entire cement sector remained in the limelight and sector turned out to be the top performer for the week with an increase of 5.2%WoW. However, the sector failed to support the index as profit taking was witnessed across all other major sectors where Oil & Gas Exploration witnessing a decline of 4.1%WoW, followed by Commercial Banks plunging by 3.9%WoW.
Flow wise, Foreigners remained net sellers during the week with US$3.16 million together with Banks (US$12.38 million) which was mainly absorbed by Individuals with net buy (US$12.65 million) and Companies (US$8.4 million).
Top performers during the week included: KOHC, PIOC, DGKC, GATI and LUCK, whereas laggards were: FCEPL, SNGP, GATM and FABL.
Key news flows driving the market during the week included: 1) The Gop approving Russia’s Sputnik V vaccine for emergency use and is also completing in process for granting approval to private firms to import Covid shots which will be exempted from price caps, 2) The Federal Cabinet giving final approval to the recommendations of the (CCoE) for payment of Rs403 billion to IPPs, 3) TERF recording the highest increase of Rs51 billion in one week, 4) NEPRA notifying Rs1.54/kWh increase in electricity tariff for ex-Wapda Discos,5) OGRA allowing Rs13.42/mmbtu increase in tariff to SNGP, 6) Automobile sales increasing by 59/31% YoY/MoM for January 2021 taking the total increase for 7MFY21 to 28%YoY.
Analysts expect the market to bounce back next week on the back of GoP’s approval to private firms to import Covid-19 vaccine which will speed up the vaccination drive in the country. Finalization of payment mechanism to IPPs is expected to keep the entire energy chain in limelight. Moreover, market will also set its sight on upcoming FATF review where Pakistan will once again make a case for removal of its name from grey list. Major result announcement in the upcoming week include EFERT, KOHC, HBL, MEBL, ENGRO, MARI, DGKC and PSO.