JS Securities Limited - JS Research.

Karachi -- June 01, 2021 (PPI-OT)

Monthly Market Review

The KSE100 gained nearly 8.2% in May-2021 as it closed the month at a level of 47,896. This takes overall gains during CYTD 2021 to 9.5%. This is welcoming at the very least, considering the marginal losses in the last three consecutive months. Furthermore, a glance at the market participation suggests that the COVID-19 vaccinations are not just building immunity but also confidence.

Analysing the market rally from a liquidity perspective, we find that Insurance Companies and Mutual Funds have been net sellers both in May-2021 and in CYTD 2021. On the other side of the fence, we find Individuals absorbing this selling (and more). They were not only the largest net buyers during May-2021 but are clearly seen almost singlehandedly providing support to the index during CYTD 2021.

In terms of sectors, the outgoing month saw Banks and E and Ps finally start...