Karachi, April 01, 2022 (PPI-OT): Pakistan Strategy: Mar’22 Market Review and Outlook

KSE-100 index remained flat during the month of Mar’22, returning 1.1%MoM during the period under review as the compelling valuations and a slight ease off in the international commodity prices was picked up by market. Cumulatively, the market has returned 0.8% during 3MCY22.

However, the political noise remained heightened throughout the month as the united opposition ramped up pressure on the sitting PM as calls for no confidence against him gained momentum, which capped the performance somewhat.

Owing to the prevailing political uncertainty, the investor participation declined where the average daily traded volume in the all share index declined to ~297mn shares from 328mn shares witnessed during the last month. Top performing sectors during the month were Leather (10.2%MoM), REITs (9.6%MoM), FMCGs (6.1%MoM) and Insurance (6.0%MoM) while the major laggards were OMCs (-6.1%MoM), Refineries (-5.4%MoM) and Paper and board (-4.1%MoM)

The settlement of matters on political noise, will bring some stability to the market while the easing off of tensions between Russia and Ukraine will also help bring stability in the commodity markets which will also be positively received by the investors. We therefore advise investors to build position on every dip.