Actions will build on results, Prime Minister’s visit to Moscow

Stocks will follow the Prime Minister’s visit to Moscow for clues, while investors will also keep their eyes peeled for strong financial results in the rolling week, in hopes that the trade will be mainly based on the positive, traders said.

The KSE-100 equity index, the country’s main capital market indicator, fell 403 points or 0.9% to 45,676 points week-on-week on the Pakistan Stock Exchange (PSX).

Turbulence gripped the local capital market during the week that saw international markets tumble due to simmering tensions between Russia and Ukraine, which sent global crude oil prices soaring amid of a tidal wave of panic.

“We expect the market to remain positive over the coming week,” said a report from Arif Habib Ltd, a brokerage.

“Prime Minister Khan is expected to visit Moscow next week with two mega-pipeline projects on the agenda to address the depletion of gas reserves.”

The report indicates that the signing of a trade agreement during this visit could catalyze positive activities in the market.

“Bearing in mind the current earnings season, certain sectors and certificates should remain in the limelight,” he added.

The market started on a negative note this week on fears of a full-scale military conflict in Eastern Europe as well as rising local political temperatures.

However, the market saw some respite after the announcement of the withdrawal of Russian troops from its border with Ukraine.

However, market sentiment remained subdued throughout the week after a massive rise in local oil prices raised concerns about inflation.

Additionally, the massive 93% YoY jump in the trade deficit for 7MFY22 further fueled negativity.

In addition, the lower-than-expected financial results announced by some scrips also dealt a blow to market sentiment.

While the passage of the Oil and Gas Regulatory Authority (Amendment) Bill, 2022 and the Weighted Average Cost of Gas (WACOG) Bill by the Senate has kept the gas utilities and some oil marketing and exploration and production certificates in the limelight, cushioning the overall decline.

A Topline Securities said investor participation also fell in the market, with average daily volume traded falling 7.7% to 191 million shares, while value traded plunged 36% to 5.2. billion rupees week after week.

Overseas sales reached $1.97, compared to a net sale of $5.9 million last week. Significant sales were seen in technology ($1.5 million) and commercial banking ($0.5 million).

On the local front, purchases were reported by banks ($4.9 million) and individuals ($2.4 million). Negative sector contributions came from commercial banks (88 points), fertilizers (68 points), power generation and distribution (66 points), technology and communications (39 points) and cement ( 37 dots).

The main lagging stocks included HUBC (67 points), ENGRO (62 points), MEBL (36 points), SYS (35 points) and DAWH (34 points).

The sectors that provided major support were automotive assemblers (9 points), chemicals (9 points) and oil and gas exploration (5 points). Stocks that supported the index included EFERT (55 points), SNGP (24 points) and MTL (22 points).

Other major news of the week included an unprecedented fuel price hike, the approval of urea import cost estimates by the Cabinet Economic Coordinating Committee and a $231 million drop in reserves. change.

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