INP-WealthPk

PSX Absorbs Political Unrest to Land in Green

April 05, 2022

By Hamid Mehmood ISLAMABAD, April 05 (INP-WealthPK): The market had an exciting last week (March 28-April 1), as both the government and the opposition attempted to rally support in the wake of the vote of no-confidence against Prime Minister Imran Khan. Financial experts feel the market has essentially absorbed the aforementioned, which, together with a drop in international oil and coal prices has re-energized the bulls as inflation fears fade. Despite some swaying in the minority party support in the middle of the week, the market concluded at 45,152 points, up 1,600.97 points (or 3.67%) according to WealthPK research. The All-Shares Index (995.55), the KSE 30 Index (580.81), and the KMI 30 Index (3148.68) all rose in value on a week-on-week basis.

Index Week Start Week-End Change % Δ
KSE 100 Index 43,551.14 45,152.11 1,600.97 3.67607
All Shares Index 29,859.99 30,855.54 995.55 3.33406
KSE 30 Index 16,657.48 17,238.29 580.81 3.48678
KMI 30 Index 70,090.59 73,239.27 3,148.68 4.4923
Source: PSX/ WealthPK Research Stocks soared on Monday (28th March) on news that the government had won back its annoyed partners, securing the much-needed backing in the face of no-trust vote and, for the time being, averting any political shocks to the economy. The benchmark KSE-100 Share Index finished the day with a rise of 382.41 points, or 0.88 %, to 43,933.56 points, up from 43,551.15 points the previous session. Stocks rose for a second day on Tuesday (29th March) as investors untied their hands due to cooling global oil and coal markets and a projected government formation in Punjab, which is expected to reduce political instability. After bouncing between a day high of 44,477.04 and a low of 43,933.56 points, the benchmark KSE-100 Shares Index gained 505.14 points, or 1.15 %, to end at 44,438.70 points. The KSE-100 Shares Index fell 101.14 points, or 0.23 %, to 44,337.56 points on Wednesday (March 30), after hitting a high of 44,444.87 and a low of 43,975.75 points during the intraday session. Investors appear to have finally chosen to digest the conclusion of the continuing political conflict, as stocks soared on Thursday (31st March), counting on lucrative returns in the forthcoming earnings season. The benchmark KSE-100 Share Index rose 591.27 points, or 1.33 %, to 44,928.83 points, after reaching intraday highs and lows of 44,928.83 and 44,337.56 points. Getting over the trading roadblocks, mostly created by the political crisis that is about to reach its climax, stocks on Friday raced ahead with banks and cement in the driving seat. The benchmark KSE-100 index gained 223 points or 0.50 % to close higher at 45,152. [caption id="attachment_65663" align="aligncenter" width="696"] Source: PSX/ WealthPK Research[/caption] Last week, the Foreign Investors Portfolio Investment (FIPI) realized a profit of up to $15.55 million by selling its shares. Foreign corporations sold their shares for $15.38 million, the greatest amount of money made this week, followed by Mutual Fund with $5.22 million and insurance companies with $2.27 million. Banks bought up to $15.70 million worth of stock, followed by individuals who bought $7.49 million worth of stock. Other organizations bought shares worth up to $1.40 million. According to financial experts, with the no-confidence vote against Prime Minister Khan on Sunday, political unrest is anticipated to subside. Furthermore, with the ongoing peace talks between Ukraine and Russia, commodities prices are projected to fall further. The banking sector (United Bank, Habib Bank, Meezan Bank, Muslim Commercial Bank, and Faysal Bank), petroleum (Pakistan State Oil, Mari Gas, Oil & Gas Development Company Limited), automobile (Indus Motor), and cement (Lucky Cement, Fauji Cement) industries are among the most popular stocks for the next week.