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INP-WealthPk

Delay in IMF talks, visit of Saudi prince affect PSX

November 23, 2022

 Irfan Ahmed

The Pakistan Stock Market (PSX) commenced on a negative note this week owing to a delay in talks with the International Monetary Fund (IMF) for the ninth review and postponement of the scheduled visit of the Saudi crown prince to the country, WealthPK reports.

The Pakistani rupee also remained under pressure against the greenback and plummeted by Rs1.53 on a week-on-week basis to settle at Rs223.17.

Meanwhile, the large Scale Multi-Illuminant data reports a 0.4% dip in the first quarter of the current fiscal on a year-on-year basis. However, the removal of Pakistan from the UK’s High-Risk Third Countries cushioned the overall dip.

According to WealthPK analysis, the market lost 362.71 points throughout the week, closing at 42,730.24 points, down by 0.84% on a week-on-week basis.

The all-share index also decreased by 357.58 points, the KSE-30 index slipped by 97.37 points, and the KMI-30 index decreased by 742.61 points on a weekly basis.

According to PSX data, foreigners buying totalled $2.06 million as compared to a net sell of $4.65 million in the last week.

The stock exchange remained under pressure on November 14 as investors opted to book profit with low trading activities. The benchmark KSE-100 index decreased by 242.12 points. It fell by 0.52% from the previous close of 43,092.95 points to 42,939.08 points.

The stock exchange witnessed a bearish trend on November 15 due to political instability in the country. The KSE-100 index lost 53.98 points, a negative change of 0.13%, and closed at 42,796.85 points.

The PSX witnessed positive sentiment on November 16 from investors following the announcement of inflows from a multilateral institution, driving the benchmark KSE-100 index upwards. The 100-index gained 186.90 points, a positive change of 0.44%, and closed at 42,983.75 points.

The stock exchange saw a bearish trend on November 17 as the benchmark KSE-100 index shed 164 points to close at 42,819.72 points. The KSE-30 shares index shed 53.48 points to close at 15,763.26 points.

The PSX also witnessed  a bearish trend on November 18 and the benchmark KSE-100 fell by 89.48 points to close at 42,730.24 points. The benchmark KSE-100 index extended losses the whole day and went straight down to 42,730.24 points as the trading closed midday.

By selling its shares last week, the Foreign Investors Portfolio Investment (FIPI) made a profit of up to $2.06 million. Broker Proprietary Trading made the most money this week, selling their shares for $2.90 million, followed by Mutual Funds with $1.96 million and insurance companies with $1.57 million.

Companies purchased up to $2.87 million in shares, followed by individuals, who purchased $1.91 million in stock. Overseas Pakistanis purchased up to $1.31 million worth of stock.

According to Muhammad Irfan, a financial analyst with Arif Habib Limited, key events to look out for include the monetary policy meeting scheduled for November 25.

“The meeting is likely to dictate the direction of the market, where we expect no change in the interest rates by the SBP. We expect the market to remain range bound in the upcoming week as the participants will remain vigilant owing to the political situation in the country,” he told WealthPK.

Credit : Independent News Pakistan-WealthPk