Aba Ali Habib Research
18 August 2017
Daily Closing: Benchmark index bears the brunt of political tension.
Bourse on the backdrop of prevailing political uncertainty witnessed exasperating trading session on the last day of week. Index hit year low of 42,347.19 points marking an intra-day loss of 789 points and there after staged a recovery and added 51 points. However, later the day index closed with marginal plunge of 57 points at above 43K.
DAWH, ENGRO, SEARL, HBL and DGKC were the top laggards in dragging the index cumulatively by 109.9 points. A total of 362 scrips changed hands where 145 advanced, 197 declined and 20 remained unchanged. Market witnessed improvement in volume with 188mn shares today, up by 11.9% compared to the volume of 167mn shares in the last trading session. Traded value turned out to be PKR 11.3bn, up by 27% DoD.
ENGRO fell by PKR 6.81 to close at PKR 294.5/share on account of below than expected 2QCY17 results, where company posted loss per share of PKR 2.82. BATA, COG, ABOT, JLICL and SAPL emerged at top looser falling by PKR 155.0/115.0/40.0/39.9/37.2 in their respective share values.
Volume leaders included ANL (18.15mn shares), ASL (14.25mn), TRG (13.03mn), BOP (7.76mn) and KEL (7.5mn). Among the sectors Engineering appeared as top traded sector with turnover of 24.0mn shares followed by Banks (23.6mn), Textile composite (21.73mn), Technology & communication (17.3mn) and Oil & Gas marketing companies (16.6mn).
Weekly Closing: Waning economic indicators and prevailing political jitters ended the Index with year low of 42,347 points
Post-independence KSE-100 index witnessed 3 bearish and 1 bullish session in outgoing week and marked its support resistance level of 42,347.19-45,419.52. Volatile political circumstance coupled with threat of currency devaluation and depleting foreign reserves added fuel in investor’s rising concerns and consequently dragged the index by 2,556 points to settle at 43,078 at the end of week. Average volume traded during the week was 184mn shares with average traded value of PKR 9.9bn.
Important new of the week were 1) Fixed sales tax on petroleum freight proposed, 2) Foreign investment jumps by 162pc, 3) Coal-fired plant relocated to cut transportation cost, 4) Govt mulls surcharge to boost POL storage capacity and 5) The country’s service exports recorded a growth of 1.76 per cent year-on-year to $5.55 billion in 2016-17.
In international market Oil headed for a third weekly fall as U.S. crude production rose to a two-year high and Chinese refining slowed, signs that the world’s two biggest consumers may stymie OPEC-led efforts to trim a global glut.
Among market participants’ foreigners remained net seller during the week amounting to USD 2.04mn, primarily contributed by overseas Pakistani amounting to USD 1.20 mn. The activity of foreign corporates and individual were observed to be net selling of amounting USD 0.78mn and 0.06mn, respectively. Local investors remained net buyer amounting to USD 2.04mn, mainly contributed by Insurance (USD 9.39mn) and companies (USD 6.36mn). Whereas throughout the week mutual funds remained as net seller amounting of USD 23.59mn.