Stocks are likely to bet heavily on loaded earnings, especially in cyclical sectors; However, a delta variant spike could shake investor morale, traders said.
“Next week, the market is expected to build on the momentum it gained this week,” said a report from Arif Habib Limited, a brokerage firm.
The benchmark KSE-100 stock index closed the week at 47,834 points, up 271 points week-over-week.
“We stress that cyclical sectors will be in the spotlight due to the healthy earnings expected for the next earnings season.”
However, the report warned that the fourth wave of Covid would remain a cause for concern and could keep people feeling nervous.
Average volumes reached 467 million shares, down 4% week-over-week, while average trade value was registered at $ 96 million, down 10% on a week-to-week basis to the other.
In the outgoing week, foreign purchases hit $ 4.6 million from a net sale of $ 5.2 million last week. The purchase was seen in cements ($ 1.32 million), exploration and production ($ 1.30 million), and technology and communications ($ 1.30 million).
Domestically, strong sales were reported by individuals ($ 9.98 million) and broker-owners ($ 6.32 million).
The KSE-100 is currently trading at a PER of 6.8x (2021) against the Asia-Pac regional average of 16.3x while offering a dividend yield of 6.6% versus the 2.3% offered by the region.
The outgoing week saw the index gain momentum despite a continued rise in Covid cases due to the delta variant. The past seven days have seen an average of about 2,000 cases per day compared to 1,400 cases for the previous seven days.
Sectoral positive contributions come from commercial banks (82 points), technology and communication (75 points), cement (46 points), textile composites (36 points) and investment banks / investment companies / securities companies (36 points). The positive contributors in terms of scripts were SYS (79 points), LUCK (62 points), PSX (36 points), UNITY (33 points) and BAFL (30 points).
Meanwhile, sectors that contributed negatively include fertilizers (36 points), power generation and distribution (17 points), pharmaceuticals (13 points), oil and gas exploration companies (12 points ) and automotive parts and accessories (7 points). Negative script-level contributions came from POL (15 points), EFERT (15 points), KAPCO (11 points), CHCC (11 points) and ENGRO (10 points).
“Prime Minister Imran Khan’s active move to establish and cement relations with Uzbekistan is an important, sincere and appreciable gesture. For active economic growth and the lifting of our people out of poverty, strong trade and economic relations with the countries of Central Asia will be beneficial and win-win for Pakistan, ”said Ateeq Ur Rehman, economic and financial analyst.
Rehman said that Pakistan’s current exports amount to nearly $ 25 billion, which could reach $ 80 billion with successful exports of seafood, dairy products, livestock, fruits, vegetables, textiles, hosiery, clothing, articles for children and above all, pharmaceuticals.
“Simultaneously, it will also be a direct increase in revenue, which is absolutely necessary to cover the endless and growing budget and trade deficit, while rectifying the current account and eradicating the balance of payments crisis,” he said. -he declares.
The outgoing week also saw the release of power generation data, which posted the highest generation on record of 130,223 GW. Other important developments include the receipt of $ 1 billion from the Eurobond issuance, helping reserves cross an all-time high of over $ 25 billion.