KARACHI: The share market witnessed an increase of 297 points on Wednesday due to trading activity seen in the banking sector following an unexpected rise in inflation.
Analysts at Arif Habib Limited said that the KSE-100 index stayed in the green zone throughout the day as the market celebrated the transition from emerging to frontier market.
The index opened with a bullish momentum as traders took an aggressive bet on cement, steel, and technology stocks.
Later, accumulation was witnessed in the banking sector as CPI for the month of November 2021 clocked in at 11.53 per cent YoY (+3 per cent MoM), the highest inflation in 21 months influenced by a record hike in fuel prices.
In the last trading hour, a sharp upside was witnessed as short-sellers jumped into square-off trading positions.
Sectors contributing to the performance include Cement (+113 points), Commercial Banks (+85 points), Fertilizer (+32 points), E&P (+20 points) and Power (+16 points).
Volumes decreased from 411.5 million shares to 241.1 million shares (-41.4 per cent DoD). Traded value also decreased by 73.5 per cent to reach US$ 52.6 million as against US$ 198.4 million.
Stocks that contributed significantly to the volumes include FFL, FFLR1, TPLP, MLCF and TRG.
KARACHI: Shares at Pakistan Stock Exchange (PSX) witnessed a decline of 258 points on Tuesday amid hefty volumes. The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 45,072 points as against the previous day’s closing of 45,330 points.
Analysts at Arif Habib Limited said that on the MSCI rebalancing day, the KSE-100 index witnessed a volatile session as it made a dicey move of more than 1,000 points, making a close above 45,000 points benchmark.
The E&P sector stayed in the limelight as the government is considering a scheme to reduce the stock of the circular debt by declaring dividends for the shareholders of energy sector companies.
In the last two trading hours, Institutional investors accumulated across the board as it was the last opportunity to catch foreign selling spree due to the transition from emerging to frontier market. Mainboard stocks witnessed hefty volumes today.
Sectors contributing to the performance include Commercial Banks (-160 points), Fertilizer (-78 points), Inv. Banks (-18.3 points), FMCG (-16.2 points) and Textile Composite (-12.8 points).
Volumes increased from 268.2 million shares to 411.5 million shares (+53.4 per cent DoD). Traded value increased by 219.4 per cent to reach US$ 198.2 million as against US$ 52.0 million.
Stocks that contributed significantly to the volumes include HBL, FNEL, UBL, TRG and MCB.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 45,330 points as against last Friday’s closing of 44,114 points, showing an increase of 1,216 points or 2.8 per cent.
Analysts at Arif Habib Limited said that the KSE-100 index witnessed a bull-run as it gained more than 1,200 points in intraday trading to cross 45,000 points today, lifted by the cabinet approval to revive Saudi Arabia’s $3 billion support package for Pakistan in safe deposits and $1.2 billion worth of oil supplies on deferred payments.
A major dip in crude oil prices created positive momentum in the market despite the emergence of a new variant of Covid-19.
The perception of investors towards the last leg of the foreign selling spree being completed last week created an opportunity for intra-day traders.
Sectors contributing to the performance include Commercial Banks (+283 points), Cement (+211 points), E7P (+139 points), Fertilizer (+100 points) and OMC’s (+76 points).
Volumes decreased from 289.8 million shares to 268.2 million shares (-7.5 per cent DoD). Traded value increased by 6.1 per cent to reach US$ 61.9 million as against US$ 58.3 million.
Stocks that contributed significantly to the volumes include FFLR1, TPLP, WTL, BYCO and FNEL.
KARACHI: The stock market is likely to stay positive during next week owing to the expected transfer of $3 billion from Saudi Arabia.
Analysts at Arif Habib Limited said that the market to show positivity in the upcoming week is attributable to support from Saudi Arabia in terms of safe deposits of $3 billion in the upcoming week which will release pressure off of foreign exchange reserves, the slowdown in international oil prices which will alleviate inflationary pressure, and end of roll-over week.
However, the last date of MSCI rebalancing on November 30, 2021 might trigger foreign selling, current macro-economic concerns like rising imports, higher inflationary reading due to increasing prices of commodities, and pressure on currency could keep the market range-bound.
The benchmark KSE-100 Index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 4.5x (2021) compared to Asia Pac regional average of 15.0x while offering a dividend yield of 8.5 per cent versus 2.2 per cent offered by the region.
This week trading activity remained chaotic and gloomy with 2,375 points (5.11 per cent WoW; Highest weekly decline after 27th Mar’20) being eroded from the KSE-100 index which closed at 44,114 points this week.
The decline is attributable to i) State Bank of Pakistan increasing policy rate by 150 basis points to 8.75 per cent, ii) alarming current account deficit which increased to USD 5.1 billion in 4MFY21, iii) beginning of the roll-over week, iv) net selling from foreigners amid a transition from Emerging Market to the Frontier Market and v) decline in foreign exchange reserves putting pressure on PKR parity. Moreover, the announcement of a staff-level agreement with IMF failed to rejuvenate investors’ sentiments. Albeit, the index rebounded amid i) end of petroleum dealers strike post agreement with the government to increase margins, ii) news of Saudi inflow of USD 3bn expected next week, and iii) nosedive in international oil prices which might be a breather for the economy.
Contribution to the downside was led by i) Cements (462 points), ii) Commercial Banks (326 points), iii) Technology and Communication (290 points), iv) Fertilizer (270 points), and v) Oil & Gas Exploration (252 points). Scrip-wise major losers were LUCK (205 points), TRG (177 points), HBL (114 points), PPL (98 points), and ENGRO (95 points).
Foreigners offloaded stocks worth of USD 39.1 million compared to a net sell of USD 25.0 million last week. Major selling was witnessed in Commercial Banks (USD 15.7 million) and Fertilizer (USD 6.3 million). On the local front, buying was reported by Individuals (USD 16.0 million) followed by Companies (USD 13.3 million). That said, average daily volumes and traded value for the outgoing week were up by 8 per cent and 13 per cent to 264 million shares and USD 60 million, respectively.
KARACHI: Shaukat Tarin, Advisor to Prime Minister on Finance and Revenue, on Friday inaugurated the first Professional Clearing Member (PCM) at CDC House, Karachi.
Speaking at the occasion, Shaukat Tarin said: “It is the top priority of our Government to facilitate businesses and improve ease of doing business environment.
“This initiative of Professional Clearing Member (PCM) is a very significant and timely initiative by SECP and very well executed by CDC. It is very important for our Capital market that we introduce such novel concepts which will bring more transparency and efficiency in our market.
“CDC has won the trust and confidence of the investors, Regulator and all stakeholders in the market with its efforts of market development and investor facilitation.
“The new PCM regime has been successfully implemented after the introduction of the relevant regulatory framework by SECP and capital market infrastructure entities, leading to the launch of EClear Services Limited (ESL) by i.e. CDC, PSX, NCCPL and Pakistan Kuwait Investment Company, with CDC playing the lead role of the project manager.”
Speaking at the occasion, the SECP Chairman, Aamir Khan said that “The PCM regime shall address two longstanding issues: risk of custody defaults by transferring custody to the PCM, and expanding the retail investor base by empowering small brokers.”
Tariq Rafi, member of CDC’s Board of Directors, welcomed Tarin and others guests after which Chairman CDC Moin Fudda addressed the audience. CEO CDC Badiuddin Akber presented a brief presentation to the audience explaining the working and benefits of the Professional Clearing Member.
He mentioned: “The solution will provide investors with a completely new and digital experience of Pakistan’s capital market while giving them the confidence of asset protection by a reliable and independent third party service provider.”
The event was well attended by Capital market representatives including Chairperson PSX – Dr. Shamshad Akhtar and CEO PSX – Farrukh Khan.
KARACHI: Bulls return to the stock market which gained 178 points on Friday ending a 4-day losing streak. The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 44,114 points against 43,936 points showing an increase of 178.4 points.
Analysts at Arif Habib Limited said that the battle between bulls and bears was conquered by the bulls in the last trading hour.
The market opened with positive momentum as investors perceived that the last leg of the foreign selling spree was completed on the last trading day.
The forecast of investors failed as foreign selling continued and led the market back to red territory.
Activity continued to remain side-ways as the market witnessed hefty volumes in the 3rd tier stocks.
On the flip-side, In the second session, institutional buyers started fetching value stocks due to attractive multiples which led the market to close in the green zone.
Sectors contributing to the performance include Commercial Banks (+74 points), Power (+53 points), Fertilizer (+48 points), Cement (+34 points), and Pharmaceuticals (+15 points).
Volumes increased from 195.2 million shares to 289.8 million shares (+48.5 per cent DoD). Traded value also increased by 22.4 per cent to reach US$ 58.5 million as against US$ 47.8 million.
Stocks that contributed significantly to the volumes include WTL, TPLP, BYCO, HUMNL and MODAMR.
Analysts at Arif Habib Limited said that bears ruled over the bulls for the fourth consecutive session in a week due to concerns over the devaluation of the Pak rupee and the last leg of foreign selling spree.
Roll-over week continued to remain under pressure despite attractive valuations in terms of low P/E multiples and high dividend yields.
Technology stocks remained in the limelight throughout the day as traders placed the bet on high-beta stocks to mark quick trading gains. On the flip-side, Institutional investors fetched for value hunting in the last trading hour.
Sectors contributing to the performance include Commercial Banks (-140 points), Power (-59 points), Fertilizer (-50 points), Cement (-48 points) and Pharmaceuticals (-432 points).
Volumes decreased from 310.4 million shares to 195.2 million shares (-37.1 per cent DoD). Traded value also decreased by 35.2 per cent to reach US$ 48.0 million as against US$ 74.0 million.
Stocks that contributed significantly to the volumes include TPLP, BYCO, HUBC, WTL and TRG.
KARACHI: Pakistan Stock Exchange (PSX) on Thursday announced a temporary change in duration for closing price determination and market timings.
The PSX said that in the context of the reclassification of Pakistan from MSCI Emerging Market Index to MSCI Frontier Market Index, all Market Participants are hereby informed that the following temporary changes in ‘Market Timings’ and ‘Closing Price Determination’ shall be implemented for the period mentioned hereunder:
1. CHANGE IN DURATION FOR CLOSING PRICE DETERMINATION:
The ‘Closing Price’ of Securities shall be determined over the last 120 minutes of the regular market session on the basis of Volume Weighted Average Price (VWAP) as against the current practice of last 30 minutes.
2. CHANGE IN MARKET TIMINGS:
Revised timing for Post Close Session, Trade Rectification/Modification session and Negotiated Deals Market shall be as under:
Market State:
Monday to Thursday
Post Close Session: 16:00 to 16:30
Trade Rectification / Modification: 16:30 to 18:15
Negotiated Deals Market (NDM): 09:15 to 18:15
Friday
Post Close Session: First session – Second Session 17:00 to 17:30
Trade Rectification / Modification: first Session – Second Session 17:30 to 18:45
Negotiated Deals Market (NDM): First Session 09:15 to 12:00 Second Session 14:30 to 18:45
The above changes shall remain effective from Friday, November 26th 2021 till Friday, December 3rd 2021. The timings shall be reverted back to the existing DTS w.e.f. Monday, December 6th 2021, the PSX said.
The regulator introduced amendments in the Companies (Further Issue of Shares) Regulations, 2020 to address the impediments faced by the corporate sector, particularly startups and small companies, in raising equity through conventional modes, according to a statement issued on Wednesday.
Key changes include permission to convert one class of shares into another class, issuance of shares with differential rights without the approval of the SECP, and specification of mechanism for valuation of non-cash assets.
As per the law, companies can have more than one kind of share conferring varying rights of dividend, voting, and participation depending upon the needs of its capital providers. The requirement of prior approval of SECP has now been abolished. Such a measure will considerably help reduce the administrative burden and will contribute towards the growth of the fast-paced corporate world by removing a layer of regulatory approval.
Another vital amendment is to permit conversion of one class or kind of shares into another class or kind e.g. ordinary into preference shares. Currently, the Regulations only allow conversion of preference shares into ordinary shares while no mechanism is provided for other classes of shares.
The change aims to facilitate companies in maintaining an optimal capital structure considering their own financial needs and the demands of their shareholders.
Besides, a complete mechanism for the valuation of immovable property, intangible assets, or services has been introduced.
Now, the consulting engineers registered with Pakistan Engineering Council and QCR rated chartered accountant firms will be eligible to conduct valuation for the purposes of the Act.
These amendments have been introduced in consideration of numerous queries and suggestions received from small companies and startups, and are at par with the international jurisdictions.
The index closed at 44,364 points from the previous day’s closing of 44,948 points.
Analysts at Arif Habib Limited said that bears continued to dominate over the bulls for the straight three consecutive sessions in a week as investors feared the upcoming mini-budget.
Moreover, The International Monetary Fund (IMF) has rejected Pakistan’s request to keep a door open for borrowing from the central bank and also did not agree on any meaningful accountability of the State Bank of Pakistan (SBP).
The third day of the roll-over week remained under pressure despite attractive valuations. Across the board, selling was witnessed.
On the institutional front, a cautious stance was recorded due to the concerns of foreign selling spree in the upcoming MSCI re-balancing day.
Sectors contributing to the performance include Banks (-159.0 points), Fertilizers (-123.8 points), Cements (-117.8 points), and Pharmaceuticals (-48.7 points).
Volumes increased from 264.6 million shares to 310.3 million shares (+17.3 per cent DoD). Average traded value also increased by 33.0 per cent to reach US$ 74.0 million as against US$ 55.6 million.
Stocks that contributed significantly to the volumes include TRG, WTL, TPLP, TELE and BYCO.
