Foreigners offloaded stocks worth of $1.69 million compared to a net sell of $4.40m last week. Major selling was witnessed in commercial banks at $2.41m and food and personal care products $2.32m. On the local front, buying was reported by insurance worth $10.56m, followed by mutual funds $3.56m.
Investor participation witnessed a notable decline during the week with average volume down 28pc over the previous week to 537m shares while mean traded value also fell 35pc to $92m.
Positive news flow during the week included increase in remittances to Pakistan jumping by 31pc year-on-year to $4.9bn in July-August and surge in Foreign Direct Investments by 40pc to reach at $226.7m. Moreover, SBP’s net reserves increased by $13m to rise to the level of $12.8bn while large scale manufacturing rebounded by 5.02pc in July. On the other hand, some concerns were seen on the downward revision of country’s FY21 growth forecast to 2pc by the Asian Development Bank.
Going forward, the SBP is scheduled to announce the monetary policy for the next two months on Monday. But with consensus expectations of “no change” stance, there is little interest in the event. However, any deviation (downward revision if at all) could fuel investor enthusiasm.
The All Parties Conference to be held by the opposition against the government on Monday would also be closely watched. Like the previous week, upcoming decision and news flow over the FATF could continue to drive sentiments. And finally the nervousness associated with the rollover week would weigh over the market performance.