Karachi, December 10, 2021 (PPI-OT): KSE100 ends almost flat, E and Ps and Tech upstage

A range bound trend was witnessed this week, which closed barely +163 points at 43,396 levels. News of settlement of overdue receivables of Oil and Gas Exploration Companies through a potential structured dividend plan broke in the market which brought renewed interest in the sector due to which the E and P sector closed 7.5% WoW. Nonetheless, concerns over macroeconomic indicators of the country, ongoing PKR depreciation against the greenback and anticipated hike in Policy Rate next week kept investors at bay in broadly all heavy weight sectors.

Commercial Banks (-1.5% WoW), Cements (-2.0% WoW), Engineering (-2.8% WoW) and Fertilizer (-0.3% WoW) were among the key underperformers this week. On investor participation end, a high base over MSCI rebalancing last week reflected 36% WoW decline in average daily traded volumes, while average daily traded value declined by 53% WoW. On the news front, the State Bank of Pakistan’s (SBP) foreign exchange reserves increased by US$2.65bn, reaching to US$18.66bn last week as the country received cash deposit of US$3bn provided by Saudi Arabia. Moreover, interest rates on National Saving Schemes were increased by 161bps-240bps this week, increasing to 10.8% to 12.96% on various products.