JS Securities Limited – Weekly Review

Karachi, April 03, 2020 (PPI-OT): KSE-100 recovers in a spectacular fashion, up by 12.5% WoW

Till last week, the KSE-100 index had lost 37% of its market capitalization from its peak (43,219 on 13-Jan-2020). There was always a chance that, sooner rather than later, some value buying would be witnessed and so it happened. The KSE-100 index phenomenally recovered 12.5% WoW (highest WoW return in recent memory) to close at 31,621 as a string of positive news helped in stimulating positivity at the bourse, overpowering bearish sentiments amid Coronavirus concerns. First and foremost was the anticipated incentive package for the construction sector, followed by expectations of inflows from overseas in lieu of Coronavirus relief and the Rs1.2tn package already announced.

Moreover, headline inflation dropped to 10.2% YoY in March from 12.4% YoY in February. Cements (+26% WoW) and Engineering (+28% WoW) were the obvious gainers as direct beneficiaries of the relief package. Moreover, a rebound in international oil prices triggered a recovery in OMCs (+23% WoW) and E and Ps (+16% WoW). Banks (+12% WoW) also witnessed some positivity during the week. Foreigners remained net sellers with net selling of US$36.0mn, compared to US$13.4mn last week.

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JS Securities Limited – Weekly Review

Karachi, April 03, 2020 (PPI-OT): KSE-100 recovers in a spectacular fashion, up by 12.5% WoW

Till last week, the KSE-100 index had lost 37% of its market capitalization from its peak (43,219 on 13-Jan-2020). There was always a chance that, sooner rather than later, some value buying would be witnessed and so it happened. The KSE-100 index phenomenally recovered 12.5% WoW (highest WoW return in recent memory) to close at 31,621 as a string of positive news helped in stimulating positivity at the bourse, overpowering bearish sentiments amid Coronavirus concerns. First and foremost was the anticipated incentive package for the construction sector, followed by expectations of inflows from overseas in lieu of Coronavirus relief and the Rs1.2tn package already announced.

Moreover, headline inflation dropped to 10.2% YoY in March from 12.4% YoY in February. Cements (+26% WoW) and Engineering (+28% WoW) were the obvious gainers as direct beneficiaries of the relief package. Moreover, a rebound in international oil prices triggered a recovery in OMCs (+23% WoW) and E and Ps (+16% WoW). Banks (+12% WoW) also witnessed some positivity during the week. Foreigners remained net sellers with net selling of US$36.0mn, compared to US$13.4mn last week.

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