Dealers say the stock will be raised next week by relying on the current account to post additional accounts in the first account, relying on the government to announce textile policy and companies to declare liberal earnings.
The effect of January continues strong as 2021 has so far been positive for the local markets, with the KSE index moving only one way, rising from 44,435 points on January 1.
On Saturday, the Pakistan Stock Exchange (PSX) KSE-100 index closed 0.6 percent or 276.66 points higher at 45,931 points.
On the last day of the week, the index moved back from its weekly high of 46,316 points, but still managed to improve on a weekly basis.
Mohammad Saeed Khalid, head of research at Shajar Capital, said: “We expect the index to remain above the psychological level of 46,000, primarily on the detailed trade numbers of textile policy as well as the prospects for the announcement.”
He said the banking sector could remain sluggish on the expected announcement of monetary policy later this month.
Khalid added, “We also believe that if an additional amount of 1HFY21 is posted in the existing account, it will improve the sentiment of the textile, power and IT industries.”
Salman Ahmed, head of institutional sales at Aba Ali Habib Securities, optimistic about earnings, forced market participants to raise the index despite offloading of foreign investors.
He said the main reasons for agri-trade activity during the week were delay in approving the ECC’s textile policy and ambiguity in the government-IPP agreement on repayment of circular loans.
Ahmed added that on the domestic political front, the situation remained relatively calm, while protesters in Quetta also called off their nationwide sit-in on the government’s assurance of justice.
Umair Naseer of Equity Sales Desk at BMA Capital Management said, “We maintain the positive momentum in the market in view of the rapid pace of vaccine rollout globally, stable rupee against greenback and improvement in economic indicators. Expect to keep. “
“We are confident that Banks, E&PS, Fertilizers, Autos and Cement will lead the index this year. Our strategy report released this month highlights our stock picks and the outlook for the current year.” Has been
“We expect the market to remain positive behind healthy earnings expectations, which will push the index forward,” said Tahir Abbas, Director Research, Arif Habib Limited.
Abbas added that the release of vaccines around the world could potentially keep equity markets happy.
During the week, the average volume went up to 682 million shares (9% increase in the week). The average turnover, however, was set at million 129 million (down 16% per week).
Foreign investors sold equity of 2. 1.2 million last week, compared to a net purchase of 3. 3.4 million. Cement ($ 0.9 million) and FMCG (0. 8.8 million) saw big sales.
On the local front, large purchases were reported by individuals ($ 24 million) and banks / DFIs (2 1.2 million).
Positive contributions from the sector were in technology and communications (168 points), power generation and distribution (66 points), engineering (41 points), glass and ceramics (37 points), and textile composite (34 points).
However, the sectors that played a negative role include fertilizer (63 points), tobacco (30 points) and oil and gas exploration companies (27 points). The script-wise positive partnership was led by SYS (89 points), TRG (82 points), INL (42 points), Capco (42 points), and GHGL (37 points).