FLASHNEWS:

JS Securities Limited – Weekly Review (November 12, 2021)

Karachi, November 12, 2021 (PPI-OT): Bears stretching muscles – KSE100 closes down 3.3% WoW

The KSE100 Index declined by 3.3% WoW, where most heavyweights closed in the red zone, with barely two sectors posting a positive close this week. Uncertainty and lack of triggers wiped out most of the gains that were posted last week, taking the benchmark’s closing to 45,749 levels. Where absence of clarity over talks with IMF kept investors shy, delay in receipt of the US$3bn cash deposits from Saudi Arabia and rising KIBOR also added to market woes.

Consequently, PKR continued to depreciate against the greenback, closing at an all-time-high – Rs175.75. Lack of investor confidence was also reflected with drop-in activity as average volumes declined by 26% WoW in terms of shares, while value traded reduced to US$64mn, down 29% WoW. On the other hand, foreign exchange reserves of the State Bank of Pakistan (SBP) rose by US$126mn last week, reaching US$17.33bn. Foreign investors continued to post net selling in the Banking sector (US$7.6mn this week), taking YTD FY22 net FIPI selling in the sector to US$84.7mn. MSCI’s announcement of Pakistan’s stocks in MSCI FM Index (Standard) and FM Small Cap Index came by the end of the week with Systems Ltd (SYS) as a surprise addition to the FM Small Cap Index.