Karachi, June 18, 2021 (PPI-OT): KSE100 Index breaks its 5-week streak, closes down 0.1% WoW

After five consecutive weeks of positive closing, the KSE100 Index finally took a breather, closing down 0.1% WoW at 48,238 levels. It appears investors opted to book profits in the rally that followed the announcement of the Federal Budget 2021-22. Nonetheless, investor participation remained upbeat with average trading value improving by 5% WoW to US$171mn. Sectors that led the correction were Technology and Communication (-0.9% WoW), Fertilizers (-1.7% WoW) and Automobile Assemblers (-0.9% WoW). On the other hand, higher international crude oil prices (touching US$72.93/bbl) led to the Oil and Gas Exploration Companies gaining 3.4% during the week.

Moreover, PSMC (+2.7% WoW) was one of the key performers this week, driven by tax cuts on smaller cars proposed in the Federal Budget FY22. KEL (+2.6% WoW) was another outperformer this week over positive developments on power supply from the Federal government. On the news front, LSM numbers released for the month of Apr-2021 were reported at a staggering 68% YoY growth, taking 10MFY21 LSM growth to 12.84% YoY. More positive news came in on the FATF front where Pakistan has now implemented 26 out of the 27-point action plan.