Stocks likely to maintain positive momentum amid attractive valuations
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Stock broker monitor television screen at a booth, during a trading session at the Pakistan Stock Exchange, in Karachi, Pakistan. — AFP/File
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KARACHI: The stock market witnessed volatility during the ongoing week but closed on a strong note. Amid attractive prices, the market is expected to maintain positive momentum next week.
A report by Arif Habib Limited Research said, “We expect the market to maintain its positive momentum in the coming week, supported by trading at attractive prices, which should continue to attract investors. is likely.” “Furthermore, with the results season beginning next week, some scrips are expected to be in the spotlight, with strong financial results expected.”
The market experienced volatility throughout the week, mainly due to political uncertainty and rising crude oil prices. However, on the economic front, positive developments provided some support.
Despite these mixed signals, the KSE-100 index rose 2,025 points (+1.8 percent week-on-week) to close at 115,272 points. Average volume reached 558 million shares (down 28.7% WOW), while average trade value reached $115.8 million (up 1.1% WOW).
Foreign sales continued during the week and reached $8.7 million (4 days) compared to last week’s net sales of $5.7 million. Banks ($3.5 million) saw major sales followed by other sectors ($2.6 million). On the local front, purchases were reported by individuals ($12.8 million) and companies ($8.5 million).
Sector-wise positive contributions came from commercial banks (619 points), power generation (357 points), pharmaceuticals (320 points), cement (199 points) and technology and communication (195 points). Among the scrip-wise positive contributors were UBL (427 points), HUBC (360 points), MARI (120 points), SEARL (100 points) and LUCK (97 points).
Meanwhile, the sector that played a negative role was sugar (23 points). Negative contributions in terms of scrip from OGDC (64 points), PPL (53 points), PABC (31 points), AKBL (30 points) and JDWS (23 points) come on
According to a research report by Topline Securities, the gains can be attributed to a recovery after the market fell by about 3.7 percent last week as value investors came in to buy the dip. Also, positive contributions came from the final trading session of the week on the back of the former prime minister’s conviction on corruption charges.
JS Research analyst Abdul Basit said during the week, the current account balance reached a surplus of $582 million for December 2024, taking the H1FY25 surplus to $1.2 billion, largely due to control of remittances and trade deficit. done
Further, the UAE confirmed a $2 billion rollover for another year, maturing in January 2025. Pakistan is also preparing to launch Panda Bonds, with an initial offering target of $200-250 million, to further support external financing.
The World Bank has pledged $40 billion to Pakistan over the next 10 years under the Country Partnership Framework (CPF).
In the recent PIB auction, the government raised Rs 385 billion against a target of Rs 350 billion, yielding a decline of 19 to 61 bps between different periods.
In other news, the Cabinet approved ongoing negotiations with 14 IPPs, which are estimated to provide relief of up to Rs 137 billion annually to electricity consumers.
The mass manufacturing index posted negative annual growth of 4.0 percent through November 2024, while the 5MFY25 LSM index declined by 1.2 percent. State Bank reserves remained steady at $11.7 billion ($30 million Wah). In December 2024, sales of passenger cars increased by nearly 60%.
