Dealers say the stock flavor-adjusted rollover adjustment is likely to offset fears of rising inflation, but strong corporate earnings could give the index a leg up.
Shares of the Pakistan Stock Exchange (PSX) KSE-100 fell 0.12%, or 62.96 points, to close at 45,868 points during the week, mostly on gains in the buying zone.
As of January 21, 2021, the outstanding future value was recorded at Rs. 2323 billion as against Rs. 2323 billion last week (January 15, 2021). “We believe the index is on a downward trend, mainly due to the onset of rollover week where inflation is released,” said Muhammad Saeed Khalid, head of research at Shajar Capital.
He said that it is hoped that the fertilizer sector will perform mainly at high take-off marks and at the same time the sector will be expected to recover in the year CY20. “We are also confident that higher cement sales at 7MFY21 will improve investor sentiment in the sector,” Khalid added.
Muhammad Jawad Vohra of BMA Trading Desk said, “We expect the market to remain buoyant in view of better economic indicators, the upcoming results season and the expected vaccine rollouts.”
However, as rollover week approaches, the index will see some improvement next week. “We prefer banks, E&S, fertilizers, automobiles and cement,” Vehra added.
Tahir Habib, Director Research, Arif Habib Limited, said that next week’s highlights were the auction of PIB (floating rate) and T-bills in which the government is planning to raise a total of Rs 460 billion.
“We expect the market to trade green in the near future due to the central bank’s policy rate stagnation, which is expected to remain below 1% of GDP for the current fiscal year 21, the current fiscal account deficit. As the forecast encourages, Covid 19 infection rate is slow and stable, Abbas said.
The power sector remained in the spotlight during the week as talks between the government and independent power producers (IPPs) to resolve the circular debt issue progressed. In the coming years, six more IPPs (19 in total) have moved ahead with the draft agreement with the government, paving the way for revenue cuts and circular loans in the coming years.
During the week, the average volume entered 510 million shares (down 25% per week), while the average value was set at 8 118 million (down 9% per week).
Foreign investors sold 5. 5.51 million worth of equity last week, compared to a net sale of 2 10.2 million. Technology and communications (24 3.24 million) and power generation and distribution (43 2.43 million) saw large purchases.
On the local front, large sales were reported after mutual funds (.9 19.9 million)
Broker Property Trading (.4 7.46 million).
Oil and gas exploration companies (143 points), fertilizers (43 points), oil and gas marketing (33 points), automobile collectors (25 points), and pharmaceuticals (16 points) contributed to the downside. Helped to get.
The biggest losers in the script war were PPL (65 points), OGDC (59 points), POL (59 points), Engro (31 points), and MCB (22 points).
The major stocks in terms of scrapies were TRG (110 points), Mari (41 points), BAHL (34 points), KTML (29 points), and ICI (26 points).