KARACHI: Pakistan stocks likely to trade in green zone during the next week starting October 10, 2022.
Analysts at Arif Habib Limited said that the market is expected to remain positive in the upcoming week.
With the Monetary Policy Committee (MPC) meeting scheduled on Monday October 10 2022, the market is expecting a status quo.
While indication of a stable parity will also aid sentiment at the index.
READ MORE: Pakistan stocks end down in mixed trading session
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 4.2x (2023) compared to Asia Pac regional average of 12.1x while offering a dividend yield of 9.8 per cent versus 2.9 per cent offered by the region.
In the outgoing week the market continued its upward trend as China agreed to refinance a $2.24 billion loan and the government is in talks of rolling over of SAFE China deposits of $ 2 billion.
Additionally the trade deficit shrank 21.4 per cent YoY from $ 11.72 billion to $ 9.2 billion, which helped the index sustain momentum during the week.
READ MORE: Pakistan stocks gain 549 points on ADB aid announcement
Furthermore, Pakistani Rupee (PKR) appreciated against the green back, closing at 219.92 (up by PKR 8.53 | 3.7 per cent WoW).
Moreover, Asian Development Bank (ADB) announced it would provide aid of around $ 2.3-2.5 billion for relief in wake of the current natural disaster that occurred.
However, on Thursday Moody’s cut Pakistan’s sovereign credit rating from B3 to Caa1 due to increased liquidity and external vulnerability risks, keeping the bourse in check.
That said, the market closed 42,085points, gaining 956points (up by 2.3 per cent).
READ MORE: Stocks rally as PKR continues recovery against dollar
Sector-wise positive contributions came from i) Technology & Communication (360 points), ii) Power Generation & Distribution (251 points), iii) Cement (129 points), iv) Fertilizer (115 points) and v) Chemical (44 points).
Whereas, sectors which contributed negatively were i) Miscellaneous (44 points), and Paper & Board (6 points). Scrip-wise positive contributors were HUBC (227 points), TRG (171 points), SYS (170 points), ENGRO (66 points) and EFERT (61 points).
Meanwhile, scrip-wise negative contribution came from PPL (48 points), PSEL (41 points), MCB (26 points), UBL (24 points) and FATIMA (11 points).
READ MORE: Pakistan stocks gain 139 points on contraction in trade deficit
Foreigners buying continued during this week, clocking in at $ 4.7 million compared to a net buy of $ 0.15 million last week.
Major buying was witnessed in Technology ($ 6.0 million), Power ($ 0.4 million) and Cement ($ 0.3 million). On the local front, selling was reported by Insurance ($ 5.7 million) followed by Banks/DFI’s ($ 4.4 million).
Average volumes clocked in at 434 million shares (up by 118 per cent WoW) while average value traded settled at $ 48 million (up by 32 per cent WoW).
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