DAILY MARKET WRAP

Failing to sustain the gains made during the day, the Pakistan Stock Exchange (PSX) ended the session on Friday in red. Indices slipped lower and lower for most of the day while volumes declined from the last close. As per analysts, the depreciation of the Pakistani Rupee against the US Dollar, depletion of Foreign Exchange reserves, and delay in agreement with the IMF were some of the major factors which dented investors’ confidence.

On the economic front, as per the latest data released by the Central Bank total Liquid Foreign Exchange Reserves were down by US$990 mn on a WoW basis. Net reserves with the State Bank of Pakistan fell by US$923 mn (lowest since Feb’14) on weekly basis. While net reserves with Banks declined by US$ 68 mn.

Moreover, the Pakistani Rupee lost PKR 7.1750/USD (2.81%) against the US Dollar on a DoD basis ending the session at PKR 262.6045/US$.

The benchmark KSE 100 index gained 5.32% on a WoW basis. Clenching 249.03 pts the benchmark KSE 100 index jumped to an intraday high of 41,095.56. Failing to sustain the gains, the index was down to the day’s low of 40,402.72 (losing 443.81 pts). It ended with a loss of 396.00 pts at 40,450.53. The KMI 30 index was down by 1,041.31 pts closing at 68,732.25. While the KSE All Share index settled lower by 265.00 pts at 26,921.40.

Overall market volumes shrunk from 363.61 mn shares in the previous session to 188.38 mn shares. Pakistan Refinery Limited (PRL -0.37%), Cynergyico PK Limited (CNERGY -3.73%), and Fauji Foods Limited (FFL 4.22%) led the volume chart. The scrips had 14.22 mn shares, 13.17 mn shares, and 12.53 mn shares traded, respectively.

Sectors driving the benchmark KSE 100 index lower included Cement sector (75.20 pts), Technology and Communication sector (75.15 pts), and the Fertilizer sector (71.34 pts). Company-wise, Systems Limited (SYS 58.24 pts), Engro Corporation Limited (ENGRO 57.40 pts), and Meezan Bank Limited (MEBL 29.79 pts) were the top negative contributors.

The Automobile Assembling sector lost 2.71% in its cumulative market capitalization. Indus Motor Company Limited (INDU 5.55%), Honda Atlas Cars (Pakistan) Limited (HCAR 2.24%), and Pakistan Suzuki Motors Company Limited (PSMC 1.16%) all closed in the red.

Values as at 05:11 PM PST