Karachi, November 19, 2021 (PPI-OT): Bulls attempt a return, KSE100 Index up 1.6% WoW

The KSE100 Index closed up 1.6% WoW on the back of two bullish trading sessions from the whole week. Anticipation of a higher quantum of hike in Policy Rate to be announced in today’s pre-poned Monetary Policy meeting drove the Banking sector this week (+3.5% WoW). After trading hours of the last session, the State Bank of Pakistan (SBP) announced a hike of 150bps, taking the Policy Rate to 8.75%. Moreover, approval of the second installment of the hefty one-time payments to 20 IPPs broadly gave the energy sectors a boost. While the Power sector increased 1.2% WoW, the Oil and Gas Exploration Companies registered an outperformance of 1.8%.

Resultantly, Kot Addu Power Company (KAPCO, +9.1% WoW) was also among the top performers of the week. However, total investor participation continued to decline. The outgoing week witnessed 23% WoW lower average traded volumes, while average daily traded value slid by 17% WoW. Selling spree by foreign investors in the Banking sector continued, where out of the total net selling of US$25mn, US$14.7mn pertained to the Banking sector. Overall selling was largely absorbed by the Insurance segment with net buying accumulating to US$13.5mn.