The Pakistan Stock Exchange (PSX) ended the last session of the year 2021 on a positive note, as the benchmark KSE-100 Index registered a gain of 0.4%, while volumes and value of shares traded increased.

At close, the index finished with an increase of 179.87 points or 0.40% to end at 44,596.07. On a CYTD basis, the benchmark KSE 100 index gained 1.92%. However, on MoM basis the index lost 1.06%.

“The KSE-100 index closed range bound this month at 44,596 points, down by 1.1 % or 476 points MoM,” said Arif Habib Limited (AHL) in its note.

“The first week of the month masked the overall performance; an all-time high trade deficit of $5.1 billion and higher than expected CPI figure of 11.53% YoY, caused a stampede at the index. As a result, the rupee also touched its historic low of Rs178.24 against the US Dollar.

“Albeit, the sentiment shifted as expectations were rife of a resolution of the gas circular debt and forward guidance of the SBP which indicated no major hike in the near term with the target of positive real interest rates appearing achievable. Finally, the Tax Amendment Bill with an aim to curb import of luxury items and generate an additional Rs350 billion meets the IMF prerequisite and kept sentiments at the index shielded,” it concluded.

Meanwhile, CEO Topline Securities, Mohammed Sohail tweeted that despite record volumes and record IPOs at PSX in 2021, “the index [closed] almost flat in 2021”.

The expert, while sharing index year-end numbers, added that in the past 10 years the bourse index has jumped up from 11,343 to 44,416, a decent gain of 15% on an annualised basis.

Sohail expressed hope that in the coming year, global commodity prices would come down, and that Pakistan follows the International Monetary Fund (IMF) reform agenda, and improves its relationship with ‘all countries’.

On the economic front, the PTI government procured $42.748 billion foreign loans during its tenure (August 2018 to December 2021) and repaid $32.7 billion (including repayment of short term debt borrowed by the Khan Administration) with the government net borrowing of over $10 billion.

Meanwhile, Sensitive Price Index (SPI) for the week ended 30-Dec-21 recorded an increase of 20.05% YoY, however, down by 0.50% WoW.

Sectors driving up the benchmark index north included oil and gas exploration (69.91 points), fertilizer (46.91 points) and banking (42.93 points).

Volume increased, clocking in at 317.65 million on the all-share index, up from 243.10 million on Thursday. The value of shares increased marginally to Rs10.83 billion, up from Rs10.34 billion.

WorldCall Telecom was the volume leader with 41.97 million shares, followed by Cynergyico PK with 39.83 million shares, and TRG Pakistan Limited with 20.43 million shares.

Shares of 361 companies were traded on Friday, of which 215 registered an increase, 130 recorded a fall, and 16 remained unchanged.

The article was first published in Business Recorder on December 31, 2021.