Karachi, November 26, 2021 (PPI-OT): Bears don’t want to leave, KSE100 Index down 5.1% WoW

The local bourse continued to witness a massacre, going back to 44,114 level by plummeting 2,375 points over increasing economic concerns amid IMF releasing the Staff Concluding Statement on the Sixth Review under the Extended Fund Facility with Pakistan at the start of the week. On the other hand, some recovery in participation came in with average daily trading volumes increasing by 8.2% WoW to 264mn shares. Following announcement of 150bps increase in the Policy Rate at the end of the preceding week, 6M KIBOR crawled up by 115bps during the outgoing week, reaching 10.31%.

Selling spree was witnessed across the board where main board sectors such as Oil and Gas Marketing Companies (-7.0% Wow), Technology and Communication (-7.8% WoW) and Cement (-9.4% WoW) sectors led the correction. Nonetheless, being beneficiaries of higher interest rates, the Banking sector outperformed the benchmark index by 2.5%, albeit declining by 2.6% WoW as the sector continued to face selling pressures from foreign investors. Net selling by foreign investors accumulated to US$39mn this week, where the chunk once again belonged to the Banking sector (US$15.7mn).