Karachi, August 20, 2021 (PPI-OT): KSE100 gains 0.9% in short trading week

The KSE100 closed the short trading week at the level of 47,600, a gain of 430 points over last week’s closing. Regional geopolitics had an influence on the market earlier in the week after Afghan President flew out of the country paving way for Taliban to take control 20 years after a US-led military invasion ousted them. However, the market was quick to more than recuperate the losses. Investor participation remained dull as average daily traded volume declined by 13% WoW to 266mn shares while value traded averaged at US$70mn per day.

On the economy front, Large-scale manufacturing (LSM) grew by 18.42% during Jun-21 taking FY21 LSM growth to 14.85% YoY. This remarkable rise in LSM during the fiscal year was expected, as mentioned in our previous reports, given slowed industrial activity during FY20 amid strict lockdowns during the first wave of COVID-19. Moreover, latest data showed that the country received only US$90mn as FDI during July as against an inflow US$129mn during the same period last year. Cement companies in the South region increased prices by Rs25/bag effective Friday which led to a rally in the sector on the last trading day of the week where FLYING, THCCL, DCL, GWCL and PIOC all closed at their upper circuits on the last trading day of the week.