Pakistan Stock Market: Serious Investors Come To Rescue
News Report
The stock market of Pakistan opened on a negative note on the backdrop of the ongoing conflict between Russia and Ukraine and increased political noise, as the index declined to make an intraday low of 339 points (down by 0.77%).
However, some recovery was observed in the latter hours of trade, as value investors came in to accumulate near the 44,000 index level.
As a result, the index gained to close at 44,461 (+477 points up by 1.08%).
On the corporate announcement front, SEARL disclosed its 2QFY22 earnings where the company posted an EPS of Rs. 2.6 (down 6% YoY). The result was higher than expected due to higher than anticipated other income.
At the same time, banks, the cement, fertilizer, and power sectors’ stocks took the lead as MEBL, LUCK, ENGRO, and HUBC cumulatively added 164 points to the index.
How to invest in the Stock Market for Beginners
On the flip side, COLG, NBP, and TRG lost value, weighing down the index by 36 points. Traded volume and value for the day stood at 208 million shares and Rs.6 billion, respectively. AGL was today’s volume leader with 15.7 million shares.
Monthly Review of Pakistan Stock Market
The KSE 100 Index declined by 2% on an MoM basis. The month of February started on a positive note for the market on account of the good corporate announcement and the resumption of the IMF program, where investors felt that corrective economic measures would be taken in line with IMF conditions.
However, the market came under pressure in line with international markets on the back of confrontation between Russia and Ukraine, which has now escalated to armed conflict, where Russia has attached to Ukraine, resulting in sanctions from the US and other western countries.
This armed conflict in East Europe has triggered an increase in commodity prices (crude oil, coal, etc.), raising investors’ concern concerning the current account deficit and inflation going forward.
Investors’ participation in the market reduced during the month, as the average traded volume and value for February stood at 226.8 million shares (down by 14% MoM) and Rs.7.3 billion (down by 12% MoM) respectively.
Major events during the month of February were the C/A deficit clocking in at the US $2.6bn (posting the highest ever monthly deficit), taking 7MFY22 Current Account Deficit to the US $11.6 billion, and the MSCI Quarterly Index Review, in which there was no change in constituents for Pakistan.
MSCI announced that Pakistan is now eligible for the MSCI FM 100 index and MSCI FM 15% Country Capped Index as part of the May 2022 Semi-Annual Index Review (SAIR).
