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Category: Stock & Commodity

  • Stock market sheds 196 points on selling activities

    Stock market sheds 196 points on selling activities

    KARACHI: The stock market fell by 196 points on Thursday owing to selling observed during the day. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 44,863 points as against last day’s closing of 45,059 points, showing a decline of 196 points.

    Analysts at Arif Habib Limited said that the market declined further today with a drop of 278 points during the session and ended the session -196 points.

    Selling was evident across the board, but had the most impact on Cement, Fertilizer, Steel sectors. Financial results have failed to generate the usual interest among investors perhaps due to the upcoming tight budget right after Ramadan and a long hibernating period till the next financial results will be announced.

    International crude oil prices were on the rise overnight, however, E&P stocks did not react to it. Among scrips, HASCOL led the table with 43.8 million shares, followed by GGL (32.6 million) and TELE (19.5 million).

    Sectors contributing to the performance include Banks (-58 points), Cement (-56 points), Fertilizer (-33 points), Power (-28 points) and Tobaco (-13 points).

    Volumes declined from 305.7 million shares to 280.7 million shares (-8 percent DoD). Average traded value also declined by 16 percent to reach US$ 88.6 million as against US$ 105 million.

    Stocks that contributed significantly to the volumes include HASCOL, GGL, TELE, TRG and GGGL, which formed 45 percent of total volumes.

    Stocks that contributed positively to the index include HASCOL (+10 points), KTML (+10 points) and ICI (+8 points). Stocks that contributed negatively include FFC (-26 points), SNGP (-26 points), MCB (-14 points) and POML (-13 points).

  • PSX issues new trading, office timings

    PSX issues new trading, office timings

    KARACHI: Pakistan Stock Exchange (PSX) on Wednesday issued new timings of trading and office of the exchange effective from Thursday April 29, 2021.

    In a notification the exchange said that in line with the decision of National Command and Operation Center (NCOC) regarding the COVID-19 situation and subsequent reduction in banking hours by the State Bank of Pakistan (SBP) notified today, PSX has also revised its market and office timings keeping in view the smooth clearing and settlement within the reduced banking hours.

    The revised timings, as appended, shall take effect from trading day April 29, 2021 and shall remain in force till further notice.

    Following is the revised schedule of PSX:

    PSX timings 01

  • Equity market ends down by 234 points in range bound trading

    Equity market ends down by 234 points in range bound trading

    KARACHI: The equity market recorded a decline of 234 points on Wednesday while trading in range bound during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 45,059 points as against previous day’s closing of 455,293 points, showing a decline of 234 points.

    Analysts at Arif Habib Limited said that the market traded range bound today between -272 points and +296 points during the session.

    Selling pressure was concentrated in Banks, E&P, Cement and Steel sector stocks similar to what was witnessed yesterday and the absence of active buyer exacerbated the situation leading to index closing lower than LDCP.

    Technology stocks saw NETSOL performing, whereas TRG declined over the day. Service Global Footwear (SGF) hit upper circuit on the first day of listing on PSX, but selling pressure brought the price down. Among scrips, TELE topped the volumes with 29.3 million shares, followed by ANL (25.6 million) and TRG (18.3 million).

    Sectors contributing to the performance include Banks (-93 points), E&P (-44 points), Technology (-35 points), Cement (-33 points), Pharma (-29 points) and Fertilizer (+30 points).

    Volumes declined from 366.8 million shares to 305.7 million shares (-17 percent DoD). Average traded value also declined by 7 percent to reach US$ 104.6 million as against US$ 112.1 million.

    Stocks that contributed significantly to the volumes include TELE, ANL, TRG, UNITY and GGGL, which formed 33 percent of total volumes.

    Stocks that contributed positively to the index include COLG (+24 points), FFC (+21 points), NRL (+13 points), ENGRO (+13 points) and POL (+12 points). Stocks that contributed negatively include HBL (-39 points), OGDC (-36 points), PPL (-24 points), MCB (-23 points) and TRG (-21 points).

  • Stock market ends down by 390 points on selling in major scrips

    Stock market ends down by 390 points on selling in major scrips

    KARACHI: The stock market fell by 390 points on Tuesday as selling seen in major scripts during the day. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 45,293 points as against previous day’s closing of 45,683 points, showing a decline of 390 points.

    Analysts at Arif Habib Limited said that excitement observed yesterday withered away when the benchmark index saw a decline of 513 points during the session.

    The scrips that saw selling today included OGDC, PPL, PSO which performed well the other day. Investor sentiment remained at a low ebb throughout the session with persistent selling in O&GMCs, E&P, Cement and Steel sectors. Among Tech stocks,

    TRG closed below LDCP whereas NETSOL hit upper circuit. Volume leaders include TELE with 48.1 million shares, followed by UNITY (43.4 million) and FLYNGR (26.5 million).

    Sectors contributing to the performance include E&P (-182 points), Fertilizer (-58 points), O&GMCs (-50 points), Cement (-45 points) and Power (-34 points).

    Volumes declined from 409 million shares to 366.8 million shares (-10 percent DoD). Average traded value also declined by 28 percent to reach US$ 112.1 million as against US$ 155.1 million.

    Stocks that contributed significantly to the volumes include TELE, UNITY, FLYNGR, TRG and ANL, which formed 41 percent of total volumes.

    Stocks that contributed positively to the index include NRL (+14 points), DAWH (+14 points), HBL (+12 points), AICL (+11 points) and ICI (+11 points). Stocks that contributed negatively include OGDC (-71 points), PPL (-59 points), ENGRO (-46 points), POL (-44 points) and PSO (-40 points).

  • Equity market gains 976 points on fund injection expectation

    Equity market gains 976 points on fund injection expectation

    KARACHI: The equity market rebounded with an increase of 976 points on Monday on the anticipation of new fund injection by mutual funds.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 45,683 points as against last Friday’s close of 44,707 points, showing an increase of 976 points.

    Analysts at Arif Habib Limited said that the market made a rebound today with the anticipation of new fund injection by mutual funds, despite the persistent selling witnessed in the past couple of sessions at the behest of rising cases of Corona.

    Financial results announced earlier today failed to excite the market, when the index tumbled 317 points earlier in the session.

    Aggressive buying was observed in OGDC, PPL and PSO, all of which hit upper circuits during the session although OGDC and PSO closed below the upper circuit. Similarly, buying was observed in HBL and UBL, which helped the index post 1246 points after sustaining loss of 317 points.

    Session ended +976 points (unadjusted). Among scrips, TELE topped the volumes with 55 million shares, followed by TRG (53.5 million) and UNITY (26.4 million).

    Sectors contributing to the performance include E&P (+239 points), Banks (+177 points), Cement (+99 points), Fertilizer (+87 points) and Pharma (+81 points).

    Volumes increased from 240.4 million shares to 409 million shares (+70 percent DoD). Average traded value also increased by 103 percent to reach US$ 155.5 million as against US$ 76.6 million.

    Stocks that contributed significantly to the volumes include TELE, TRG, UNITY, SILK and GGL, which formed 41 percent of total volumes.

    Stocks that contributed positively to the index include OGDC (+102 points), PPL (+96 points), HUBC (+78 points), TRG (+60 points) and LUCK (+58 points). Stocks that contributed negatively include PSMC (-9 points), INIL (-8 points), AICL (-6 points), LOTCHEM (-5 points) and KEL (-5 points).

  • Weekly Review: third wave of coronavirus remains threat for stock market

    Weekly Review: third wave of coronavirus remains threat for stock market

    KARACHI: The third wave of coronavirus with high number of cases is remained a key risk for the stock market during next week, analysts said.

    Analysts at Arif Habib Limited said that while the NCOC has advised stricter restrictions and shorter work hours, a complete lockdown on a national level has been ruled out.

    This will be a sigh of relief for the business community. Albeit the third wave of the novel coronavirus (more lethal than the last two) remained a key risk for the market.

    The analysts said that the strong result season appears to be a solid indicator of the economic and corporate recovery.

    The benchmark KSE-100 of Pakistan Stock Exchange is currently trading at a PER of 6.7x (2021) compared to Asia Pac regional average of 16.1x while offering a dividend yield of ~7.2 percent versus ~2.6 percent offered by the region.

    With a perturbing political situation building up from last weekend (protests and sit-ins by TLP across the country and a series of failed negotiations with the government), the domestic equity bourse displayed adverse momentum at the beginning of the week.

    Although slight relief appeared in the form of robust result announcements, it remained short-lived as growing prevalence of COVID-19 infection globally (India made a new high in reported cases; over 332,000 in a single day) and rising local cases, squashed any signs of recovery at the market. While expectations of a wider lockdown to be implemented by the NCOC, also kept investors wary. The KSE-100 index closed at 44,707 points, down by 1.3 percent / 599 points WoW.

    Contribution to the downside was led by i) Oil and Gas Exploration Companies (210 points), ii) Cement (78 points), iii) Power generation (93 points), iv) Chemical (79 points), and v) Oil and Gas Marketing Companies (77 points). Whereas sectors that contributed positively include i) Commercial Banks (160 points) amid strong result outcomes, ii) Technology (58 points), and iii) Fertilizer (28 points). Scrip-wise major losers were OGDC (96 points), HUBC (76 points), and PPL (56 points). While top positive contributors were TRG (118 points), ENGRO (77 points), and HBL (60 points).

    Foreigners accumulated stocks worth of USD 7.3 million compared to a net sell of USD 0.9 million last week. Major buying was witnessed in Technology and Communication (USD 4.80 million) and Commercial Banks (USD 2.42 million). On the local front, selling was reported by Mutual Fund (USD 7.73 million) followed by Companies (USD 5.35 million). That said, average daily volumes and traded value for the outgoing week were down by 10 percent and 3 percent to 333 million shares and USD 97 million, respectively. 

  • Stock market sheds 223 points on coronavirus restrictions

    Stock market sheds 223 points on coronavirus restrictions

    KARACHI:  The stock market fell by 223 points on Friday as investors were upset on further restrictions imposed by the government to prevent spread of coronavirus.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 44,707 points from previous day’s closing of 44,930 points, showing a decline of 223 points.

    Analysts at Arif Habib Limited said that the market declined further by 566 points during the session, again in anticipation of lock down at national level that caused investors to adopt cautious approach and avoid taking new positions. KAPCO announced financial results today, which had little impact on stock price due to non-declaration of dividend against market expectation.

    O&GMCs, E&P, Cement and Steel sector stocks saw selling pressure induced by institutional investors. Among scrips, GGL topped the volumes with 38.7 million shares, followed by WTL (24.1 million) and TRG (23.6 million).

    Sectors contributing to the performance include E&P (-54 points), Chemical (-40 points), Fertilizer (-38 points), Power (-32 points) and Textile (-28 points).

    Volumes declined from 328.9 million shares to 240.5 million shares (-27 percent DoD). Average traded value also declined by 26 percent to reach US$ 76.6 million as against US$ 103.5 million.

    Stocks that contributed significantly to the volumes include GGL, WTL, TRG, UNITY and BYCO, which formed 43 percent of total volumes.

    Stocks that contributed positively to the index include TRG (+49 points), HMB (+30 points), AICL (+15 points), NBP (+12 points) and PSX (+5 points). Stocks that contributed negatively include OGDC (-31 points), COLG (-31 points), HUBC (-27 points), ENGRO (-16 points) and HBL (-12 points).

  • Equity market witnessed decline of 377 points on rising coronavirus cases

    Equity market witnessed decline of 377 points on rising coronavirus cases

    KARACHI: The equity market fell by 377 points on Thursday owing to rising concerns of investors over fast spread of coronavirus in the third wave.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 44,930 points as against previous day’s closing of 45,306 points, showing a decline of 377 points.

    Analysts at Arif Habib Limited said that concern over growing cases of Corona and incidence in major cities thereof kept the investors perturbed the second day as well, where despite healthy earnings posted by companies announced today, the index eventually went down by 424 points. At the close, the index registered a decline of 377 points.

    E&P, Cement, Steel scrips contributed the most to the decline, whereas banking sector stocks saw pick up today. Notable scrips declaring results today includes ENGRO and UBL, which made the announcement at the beginning of the session that included dividend declaration, however, selling pressure brought the stock prices down by the end of session. Among scrips, GGL topped the volumes with 36.3 million shares, followed by TRG (30.2 million) and WTL (26.8 million).

    Sectors contributing to the performance include E&P (-94 points), Cement (-79 points), Textile (-55 points), Technology (-45 points) and Autos (-34 points).

    Volumes declined from 387.9 million shares to 328.9 million shares (-15 percent DoD). Average traded value also declined by 18 percent to reach US$ 103.5 million as against US$ 126.3 million.

    Stocks that contributed significantly to the volumes include GGL, TRG, WTL, UNITY and TELE, which formed 38 percent of total volumes.

    Stocks that contributed positively to the index include UBL (+56 points), HBL (+45 points), ENGRO (+27 points), BAFL (+11 points) and BAHL (+8 points). Stocks that contributed negatively include OGDC (-40 points), MCB (-29 points), PPL (-26 points), SYS (-25 points) and LUCK (-20 points).

  • SECP’s guidelines for convertible debt securities

    SECP’s guidelines for convertible debt securities

    ISLAMABAD: Securities and Exchange Commission (SECP) on Wednesday notified guidelines for issuance of convertible debt securities in Pakistan through both private placement and public offering mode.

    The SECP issued the following guidelines:

    Steps involved in Private Placement:

    i. Requisite approval under section 83 of the Companies Act, 2017 for further issue of share capital in relation to Issuance of CDS. (Since conversion of CDS into shares would enhance the share capital of the Company, therefore approval of section 83 (1) b is required, whereby a public Limited company can enhance share capital by the way of other than right offer through special resolution and Commission’s approval.

    ii. Structuring of CDS as per the Structuring of Debt Securities Regulations, 2020. As per the said Regulations, the Issuer can issue the CDS either through execution of Issuance agreement or Trust Deed. Provisions relating to Trust Deed and Issuance agreement are specified at regulation 11 and 15 of the Structuring of Debt Securities Regulations, 2020, respectively.

    iii. Appointment of Investment agent or Debt Securities Trustee depending upon the structure opted by the Issuer. (Investment agent is required in case of Issuance agreement and Debt Securities Trustee in case of Trust structure.)

    Entity holding a valid Consultant to the Issue license can act as Investment Agent, list of licensed Consultant to the Issue and Debt Securities Trustee is available at SECP’s website and can be accessed through:

    https://www.secp.gov.pk/data-and-statistics/capital-markets/

    iv. Drafting of Information memorandum by the Issuer for private placement. (Content of Information memorandum is prescribed in the Private Placement Rules, 2017)

    v. After complying with aforesaid requirements, Issuer can directly place convertible debt securities to the eligible investors as per Private Placement Rules, 2017. Only eligible investors can invest in privately placed convertible debt securities. (Eligible investors are specified by Commission vide SRO dated April 19, 2021 under section 66 of the Companies Act, 2017).

    vi. No regulatory approval is required for placement of CDS. (Since, the issue is privately placed and general public is not involved, therefore PSX and SECP approval is not required)

    vii. After placement, Issuer can list the CDS at Pakistan Stock Exchange as per Chapter 5C of the PSX Rule Book. (Listing requirements are specified in Chapter 5C).

    viii. Subsequent to listing, only eligible investors notified by the Commission can invest in these securities in secondary debt market.

    ix. Secondary market trading of privately placed listed debt securities is visible at BNB trading board of PSX and can be accessed through:

    https://dps.psx.com.pk/trading-panel

    Steps involved in Public Offering:

    i. Appointment of Consultant to the Issue (CTI), Underwriter(s) and Shareregsitar by the Issuer as per Public Offering Regulations, 2017.

    List of licensed Consultant to the Issue, Underwriters and Share Registrars is available at SECP’s website and can be accessed through:

    https://www.secp.gov.pk/data-and-statistics/capital-markets/

    (Role of Consultant to the Issue is to (i) draft listing application, prospectus and related documents; (ii) seek approval of PSX and SECP on the behalf of the Issuer; (iii) ensure publication of prospectus in accordance with relevant law; (iv)conduct roadshows to sell the issue; (v) guide issuer throughout the public offering process etc.

    (Role of Underwriter: Underwriter provides commitment to subscribe the unsubscribed portion of the issue. Underwriting helps the Issuer to get desired amount of the funds required for the implementation of the Project, which the Issuer would not be able to get in case of undersubscription of securities. Moreover, underwriting provide confidence to the investors that an independent third party has conducted proper due- diligence of the issue including the price before underwriting the issue.)

    ii. Structuring of CDS as per the Structuring of Debt Securities Regulations, 2020. As per the said Regulations, the Issuer can issue the CDS either through execution of Issuance agreement or Trust Deed. Provisions relating to Trust Deed and Issuance agreement are specified at regulation 11 and 15 of the Structuring of Debt Securities Regulations, 2020, respectively.

    iii. Appointment of Investment agent or Debt Securities Trustee depending upon the structure opted by the Issuer. (Investment agent is required in case of Issuance agreement and Debt Securities Trustee in case of Trust structure.)

    Entity holding a valid Consultant to the Issue license can act as Investment Agent, list of licensed Consultant to the Issue and Debt Securities Trustee is available at SECP’s website and can be accessed through:

    https://www.secp.gov.pk/data-and-statistics/capital-markets/

    iv. Preparation of Prospectus and listing documents by the CTI. (Content of Prospectus is prescribed in First Schedule of the Public Offering Regulations, 2017)

    v. Submission of listing documents along with the prospectus to the PSX for approval. (Listing documents are specified at Annexure -I of Chapter 5B of the PSX rule book) PSX rule book can be accessed through:

    https://www.psx.com.pk/psx/themes/psx/uploads/PSX_Rulebook_%28updated_on_March_31%2C_2021%29.pdf

    vi. Approval under section 83 of the Companies Act, 2017 for further issue of share capital. Since Conversion of CDS into shares would enhance the share capital of the Company, therefore approval of section 83 (1) b is required, whereby a public Limited company can enhance share capital by the way of other than right offer through special resolution and Commission’s approval. (It is advisable to obtain approval(s) after structuring of the CDS, however approval can be obtained before placement)

    vii. Placement of prospectus by PSX on its website for seeking public comments. (seven working days)

    viii. Pursuant to PSX approval, submission of prospectus to the Commission for approval under section 87 (2) read with section 88(1) of the Securities Act, 2015.

    ix. Subsequent to Commission approval, seeking dates from PSX for publication of prospectus and public subscription. (To save cost, abridged version of prospectus can be published)

    x. Prospectus has to be published in at least one English Newspaper and Urdu version of the prospectus in at least one Urdu Newspaper.

    xi. Prospectus has to be published not less than seven days and not more than thirty days before the commencement of the subscription period.

    xii. Publication of prospectus after obtaining dates from PSX.

    xiii. Placement of CDS to the general public during the public subscription period.

    xiv. Listing of CDS at Pakistan Stock Exchange as per Chapter 5B of the PSX Rule book (Listing requirements are specified in Chapter 5B).

    xv. Subsequent to listing, general public including both institutional and individual investors can invest in these securities in secondary debt market.

    xvi. Secondary market trading of publicly listed debt securities is visible at BNB trading board of PSX and can be accessed through:

    https://dps.psx.com.pk/trading-panel

  • Stock market ends down by 93 points in narrow range trading

    Stock market ends down by 93 points in narrow range trading

    KARACHI: The stock market ended down by 93 points on Wednesday while trading in a narrow range during the day. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 45,307 points as against previous day’s closing of 45,400 points, showing a decline of 93 points.

    Analysts at Arif Habib Limited said that the market traded in a narrow range today between -174 points and +227 points, closing the session -93 points.

    Investors already appeared somewhat despondent of the financial results and indifference of pertinent stocks to those results, NCOC’s hint towards lock down of major cities added fuel to fire.

    Selling pressure ensued that brought the index down, eroding the gains earlier made in the session. O&GMCs, E&P, Cement and Steel sector stocks bore the brunt and waning investor confidence had its bearing on technology stocks as well.

    Among volume leaders, TRG led the table with 46.7 million shares, followed by WTL (42.8 million) and UNITY (37.5 million).

    Sectors contributing to the performance include Technology (+72 points), Banks (+59 points), Fertilizer (+18 points), Cement (76 points), E&P (-45 points), and Engineering (-24 points).

    Volumes increased from 343.2 million shares to 387.9 million shares (+13 percent DoD). Average traded value also increased by 36 percent to reach US$ 126.5 million as against US$ 92.8 million.

    Stocks that contributed significantly to the volumes include TRG, WTL, UNITY, GGL and TELE, which formed 45 percent of total volumes.

    Stocks that contributed positively to the index include TRG (+88 points), ENGRO (+37 points), NBP (+22 points), KTML (+18 points) and EFERT (+13 points). Stocks that contributed negatively include LUCK (-28 points), FFC (-22 points), POL (-18 points), OGDC (-16 points) and ISL (-15 points).