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Category: Stock & Commodity

  • Stock market ends flat after trading moves both ways

    Stock market ends flat after trading moves both ways

    KARACHI: The stock exchange market ended with 12 points gain on Monday after trading moved both ways.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 43,219 points as against 43,208 points showing an increase of 12 points.

    Analysts at Arif Habib Limited said that the market moved both ways with an opening of +83 points and oscillating between +246 points and -169 points during the session.

    The session ended -12 points. Oil & Gas chain remained under pressure throughout the session, with PSO touching session’s low of 210, but bounced back in MoC, crossing 218.

    Refineries also faced selling pressure, with the exception of BYCO that was recently added to benchmark Islamic Index.

    Among banking sector scrips, BOP and SMBL realized trading volumes in excess of 20 percent of total traded volumes.

    Overall, Banking sector stocks led the volumes with 123.6 million shares, followed by Cement (46.2 million) and Technology (41.1 million).

    Among scrips, BOP topped the volumes with 34.9 million shares, followed by SMBL (34.9 million) and SILK (24.8 million).

    Sectors contributing to the performance include Banks (+46 points), E&P (+18 points), Textile (+17 points), Tobacco (-32 points), Fertilizer (-31 points).

    Volumes declined from 400.1 million shares to 366 million shares (-9 percent DoD). Average traded value also declined by 30 percent to reach US$ 69.7 million as against US$ 100 million.

    Stocks that contributed significantly to the volumes include BOP, SMBL, SILK, TRG and TPL, which formed 35 percent of total volumes.

    Stocks that contributed positively include PPL (+40 points), HBL (+31 points), BAFL (+24 points), TRG (+12 points) and BYCO (+12 points). Stocks that contributed negatively include UBL (-35 points), PAKT (-32 points), HUBC (-29 points), ENGRO (-24 points), and OGDC (-16 points).

  • Stock market to maintain upward trajectory

    Stock market to maintain upward trajectory

    KARACHI: The stock market may maintain upward trajectory during next week, analysts said.

    Fundamentals appear intact with stable PKR, compressing current account deficit, and inflows in T-bills, PIBs and the local bourse, should all bode well for the index.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 7.6x (2020) compared to Asia Pac regional average of 12.5x and while offering DY of ~6.3 percent versus ~2.7 percent offered by the region.

    The market depicted a mixed trend during the outgoing week with the benchmark KSE-100 index witnessing some weakness at the beginning of the week amid rising conflict between Iran and the US.

    Sentiments further worsened mid-week given Iranian strike on US Military base in Iraq. Albeit, the Pakistani bourse echoed global stock markets, depicting a swift rally post speech of the POTUS Donald Trump, which helped de-escalate tensions. With that, the market breached a 17 month high level of 13k to close at 43,207points (up by 2.1 percent WoW, +884 points WoW).

    Sector-wise positive contributions came from i) Commercial Banks (403 points), ii) Oil & Gas Exploration Companies (178 points), iii) Fertilizer (111 points), iv) Power Generation (86 points), and v) Cement (77 points). Whereas, negative sector-wise contribution came from Automobile Assemblers (44). Scrip-wise positive contributions were led by HUBC (105 points), HBL (95 points), PPL (88 points), LUCK (87 points) and UBL (73 points).

    Foreign buying witnessed this week clocking-in at USD 7.0 million compared to a net sell of USD 7.3 million last week. Buying was witnessed in Fertilizer (USD 5.9 million) and E&Ps (USD 1.8 million).

    On the domestic front, major selling was reported by Mutual Funds (USD 5.9 million) and Individuals (USD 4.0 million). Average Volumes settled at 303 million shares (up by 8 percent WoW) while average value traded clocked-in at USD 78 million (up by 13 percent WoW).

  • Companies listing simplified to promote capital formation: SECP

    Companies listing simplified to promote capital formation: SECP

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has said amendments have been made to regulations related to Initial Public Offering (IPO) to make listing simplified for promoting capital formation through securities market.

    In a statement on Friday, the SECP said that it revamped initial public offering (IPO) regime to make the IPO process simple, cost effective and more efficient.

    The amendments in IPO Regulations 2017, have been made after thorough consultation with market participants with an objective to promote capital formation by facilitating issuers and safeguarding the interest of general public by enhancing disclosures.

    In the new set of regulations, the objective eligibility criteria for listing of companies have been simplified to promote capital formation through securities market.

    Moreover, the issuers that have a track-record of less than three years and were not making profit from last two years are allowed to raise capital from securities market.

    However, such Issuers are required to submit a business plan and provide enhanced risk disclosures in the offering document for prospective investors.

    Further, with perspective of providing ease and reducing cost of IPOs, the requirement of submitting audited accounts has been reduced from 5 to 2 years.

    In addition, the time frame relating to submission of progress report by the Issuer has been increased from quarterly to half yearly basis.

    To safeguard the interest of the general public, certain parameters for green field projects (GFPs) have been introduced.

    The said parameters include: (i) At least 51% equity contribution by the sponsors; (ii) successful business track record of the sponsors; (iii) experience and skills of the management to run GFP; (iv) mandatory financial close; (v)risk-based disclosure in the offering document etc.

    Further, an exit offer mechanism has been introduced to protect the investors in case of change in the principal purpose of the issue.

    In order to encourage foreign investment in the country, the Book Runner has been allowed to waive the margin requirement of the institutional investors including foreign investors.

    Moreover, related parties have been allowed to perform different roles in the same IPO Transaction. The new IPO regime is a shift towards disclosure-based regime.

    Disclosures pertaining to principal purpose of the issue, risk factors, share capital, financial information, management of the issuer, legal proceedings and overdue loans are made part of the prospectus.

    A new section titled summary of the Prospectus has been introduced to help investors better understand the offering document.

    Moreover, to facilitate small enterprises, startups and Greenfield companies that aspire to raise funds through capital markets, the SECP has already introduced an alternate board namely Growth Enterprise Market (GEM) at PSX.

    The GEM is in addition to PSX’s main board for listing and trading of equity securities.

  • Stock market crosses 43,000-level after 17 months on buying activities

    Stock market crosses 43,000-level after 17 months on buying activities

    KARACHI: The stock market crossed 43,000 level after 17 months on Friday following across the board buying activities.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 43,207 points as against 42,523 points showing an increase of 684 points.

    Analysts at Arif Habib Limited said that the market continued the upward momentum and crossed 43,000 level after 17 months.

    Buying activity was observed almost across the board, however, blue chip stocks that were recently ascending and kept the market elevated took a breather.

    LUCK, POL, DAWH and PSO remained on the negative side. Banking sector led the volumes table with 90.1 million shares, followed by Technology (49.4 million) and Cement (28.4 million). Among scrips, BOP topped the charts with 53.1 million shares followed by KEL (33.4 million) and UNITY (24.3 million).

    Sectors contributing to the performance include Banks (+196 points), E&P (+195 points), Power (+87 points), Fertilizer (+63 points) and Textile (-30 points).

    Volumes increased from 362.5 million shares to 400.1 million shares (+10 percent DoD). Average traded value also increased by 12 percent to reach US$ 100.0 million as against US$ 88.9 million.

    Stocks that contributed significantly to the volumes include BOP, KEL, UNITY, WTL and STPL, which formed 36 percent of total volumes.

    Stocks that contributed positively include PPL (+105 points), HUBC (+98 points), OGDC (+81 points), ENGRO (+40 points) and MCB (+32 points). Stocks that contributed negatively include LUCK (-14 points), PSO (-10 points), DAWH (-9 points), KEL (-7 points), and KAPCO (-4 points).

  • Equity market sharply gains as US-Iran war concerns

    Equity market sharply gains as US-Iran war concerns

    KARACHI: The equity market sharply increased by 1166 points or 2.8 percent on Thursday as concerns over war subsided after US president address.

    The benchmark KSE-100 index closed at 42,523 points as against 41,358 points showing an increase of 1166 points.

    Analysts at Arif Habib Limited said that Post Trump address, most of the World stock markets performed well, as the concerns over war subsided.

    Oil prices, which tanked overnight due to dampening war prospects, also gained foothold above $60/bbl, helping oil & gas chain to perform as well.

    KSE-100 index went up around 1200 points during the session and closed up 1166 points. Around 306 stocks were in advance whereas 48 stocks were in decline.

    At the opening bell, index went up by 636 points and kept going up throughout the session. Banking sector took the lion’s share with 81.2 million shares, followed by Technology (44.6 million) and Power (39.3 million).

    Among scrips, BOP led the volumes with 53 million shares, followed by KEL (33.5 million) and UNITY (24.2 million).

    Sectors contributing to the performance include Banks (+335 points), E&P (+135 points), Fertilizer (+129 points), Cement (+115 points) and Power (+108 points).

    Volumes increased from 280mn shares to 362.5 million shares (+29 percent DoD). Average traded value also increased by 18 percent to reach US$ 88.8 million as against US$ 75.4 million.

    Stocks that contributed significantly to the volumes include BOP, KEL, UNITY, TRG and MLCF, which formed 37 percent of total volumes.

    Stocks that contributed positively include HBL (+123 points), HUBC (+79 points), PPL (+62 points), LUCK (+62 points) and ENGRO (+48 points). Stocks that contributed negatively include DAWH (-13 points), PMPK (-5 points), SHFA (-3 points), JLICL (-2 points), and SCBPL (-1 points).

  • Stock market declines by 547 pts on Iran attack on US bases

    Stock market declines by 547 pts on Iran attack on US bases

    KARACHI: The stock market fell by 547 points on Wednesday following Iran attack on US bases in Iraq.

    The benchmark KSE-100 index closed at 41,358 points as against 41,904 points showing a decline of 547 points.

    Analysts at Arif Habib Limited said that market took the toll of early morning Iranian strike on Iraqi Military base housing American soldiers.

    Oil price went haywire with an initial surge towards $72/bbl, but gradually came down as Iranian government signaled an end to confrontation for the time being.

    Oil & Gas chain bore the brunt of war hysteria and stock prices went down in early trading.

    Later, as the nerves calm down, market staged a recovery erasing a loss of some 400 points and went positive 35 points.

    Selling pressure built later during the day and market saw losses piling up -731 points.

    MoC saw another recovery attempt that ended the session -547 points.

    Banking sector led the volumes table with 54.9 million shares, followed by Power (44.8 million) and Cement (26.9 million). Among scrips, KEL traded 39.4 million shares, followed by BOP (38.2 million) and TRG (11.6 million).

    Sectors contributing to negatively include Commercial Banks (-148 points), Oil and Gas Exploration Companies (-77 points), Power (-62 points), Fertilizer (-55 points) and O&GMCs (-37 points).

    Volumes increased from 207.3 million shares to 280 million shares (+35 percent DoD). Average traded value also increased by 27 percent to reach US$ 75.4 million as against US$ 59.2 million.

    Stocks that contributed significantly to the volumes include KEL, BOP, TRG, MLCF and STPL, which formed 40 percent of total volumes.

    Stocks that contributed negatively include HBL (-104 points), PPL (-49 points), HUBC (-42 points), FFC (-37 points) and NBP (-19 points). Stocks that contributed positively include DAWH (+37 points), LUCK (+32 points), and NATF (+11 points).

  • Equity market recovers 608 points

    Equity market recovers 608 points

    KARACHI: The equity market recovered 608 points on Tuesday in the aftermath of US-Iran confrontation and developing geopolitical situation.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 41,904 points as against 41,296 points showing an increase of 608 points.

    Analysts at Arif Habib Limited said that in the aftermath of US-Iran confrontation and developing geo-political situation, world markets staged a recovery with an understandable decline in international crude prices.

    The KSE-100 index also partially recovered the points lost yesterday with an increase of 649 points by the end of session.

    Banks, OMCs, Refineries and Cement sectors remained in the limelight, with LUCK, PSO, ATRL and NRL hitting upper circuits by the end of session. Overall, OMCs saw largest volumes of 31.1 million shares, followed by Technology (21.9 million) and Cement (20.9 million).

    Among scrips, HASCOL led the table with 19 million shares, followed by KEL (16 million) and STPL (12.3 million).

    Sectors contributing to the performance include Banks (+205 points), Fertilizer (+83 points), Cement (+68 points), O&GMCs (+66 points) and Inv Banks (+61 points).

    Volumes declined from 266.7 million shares to 206.9 million shares (-23 percent DoD). Average traded value also declined by 14 percent to reach US$ 59.2 million as against US$ 67.5 million.

    Stocks that contributed significantly to the volumes include HASCOL, KEL, STPL, TRG and UNITY, which formed 34 percent of total volumes.

    Stocks that contributed positively include HBL (+93 points), LUCK (+60 points), DAWH (+56 points), PSO (+44 points) and ENGRO (+42 points). Stocks that contributed negatively include INDU (-16 points), NESTLE (-9 points), IGIHL (-5 points), MLCF (-3 points), and POL (-3 points).

  • Equity market ends down by 2.4% on political situation

    Equity market ends down by 2.4% on political situation

    KARACHI: The equity market fell by 1,027 points or 2.4 percent on Monday due to geo-political and regional security concerns.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 41,296 points as against 42,323 points showing a decline of 1027 points.

    Analysts at Arif Habib Limited said geo-political and regional security concerns took toll on market sentiment and investors resorted to selling.

    Although crude price jumped significantly, with Arab Light trading near $73/bbl, Oil & Gas chain didn’t take any positive impact.

    Power sector led the volumes with 52.6 million shares, followed by Banks (291 million) and Cement (22.8 million). Among scrips, KEL topped the chart with 46 million shares, followed by UNITY (17.6 million) and BOP (16.9 million).

    Sectors contributing to the performance include Banks (-186 points), Fertilizer (-155 points), Cement (-111 points), E&P (-92 points) and Power (-85 points).

    Volumes declined further from 322.9 million shares to 266.6 million shares (-17 percent DoD). Average traded value also declined by 29 percent to reach US$ 67.5 million as against US$ 94.8 million.

    Stocks that contributed significantly to the volumes include KEL, UNITY, BOP, TRG and FFL, which formed 38 percent of total volumes.

    Stocks that contributed positively include JLICL (+4 points), DCR (+1 points), SCBPL (+0 points), COLG (+0 points). Stocks that contributed negatively include ENGRO (-97 points), HUBC (-65 points), LUCK (-53 points), PPL (-48 points), and FFC (-36 points).

  • Weekly Review: Equity market to move with escalating Middle East tension

    Weekly Review: Equity market to move with escalating Middle East tension

    KARACHI: The stock market likely to move with the development in mounting tension in the Middle East following killing of Iranian leader in US air strike.

    Analysts at Arif Habib Limited said that market to remain in the green zone next week. Oil scrips may manage to attract the limelight following renewed tension in the Middle East which is likely to fuel international oil prices.

    Additionally, fresh portfolio allocations and inflow of funds with the advent of the New Year should support the momentum. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 7.4x (2020) compared to Asia Pac regional average of 12.5x and while offering DY of ~6.4 percent versus ~2.7 percent offered by the region.

    Overall optimism in the equity markets continued this week. Investors welcomed the New Year with a spectacular two-day rally of 1,746 points on the first two days of the New Year.

    Abu Dhabi Crown Prince’s one day visit and continuously improving macros with further improvement in SBP reserves (+5.5 percent WoW) helped to sustain the bullish run of the KSE-100 Index.

    Albeit, the last trading day witnessed profit taking in the wake of a US strike in Iraq to kill a key Iranian army commander. Inflation reading for Dec’19 settled at 12.63 percent YoY, declining 0.34 percent MoM. The KSE-100 Index settled at 42,323 points, up 1,475 points WoW.

    Sector-wise positive contributions came from i) Commercial Banks (261 points), ii) Fertilizer (218 points), iii) Oil & Gas Exploration Companies (208 points), iv) Power Generation (184 points), and v) Cement (171 points). Whereas, negative sector-wise contribution came from Tobacco (27). Scrip-wise positive contributions were led by HUBC (138 points), LUCK (124 points), ENGRO (102 points), OGDC (85 points) and PSO (79 points).

    Foreign selling continued this week clocking-in at USD 7.3 million compared to a net sell of USD 2.9 million last week. Selling was witnessed in Commercial Banks (USD 4.7 million) and Fertilizer (USD 1.4 million).

    On the domestic front, major buying was reported by Mutual Funds (USD 8.6 million) and Banks/DFI (USD 4.2 million). Average Volumes settled at 282 million shares (up by 23 percent WoW) while average value traded clocked-in at USD 69 million (up by 29 percent WoW).

  • Equity market ends down 158 points on profit taking

    Equity market ends down 158 points on profit taking

    KARACHI: The equity market fell by 158 points on Friday owing to profit taking on the last trading day of the week.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 42,323 points as against 42,481 points showing a decline of 158 points.

    Analysts at Arif Habib Limited said that the market opened on a positive note today with +334 points and 3.34 million volume traded. Oil chain reacted to the jump in international oil prices which went up on the news of US attack on Iranian military commander.

    POL reacted the most to hike in oil prices. Similarly, among OMCs, PSO made a rapid ascent.

    Majority of the stocks remained red by the end of session due to profit booking and concerns over regional security.

    Among Banks, HBL and UBL remained under pressure. Technology sector led the volumes table with 43 million shares, followed by Banks (34.5 million) and Cement (33.2 million).

    Among scrips, TRG topped the chart with 23.7 million shares, followed by UNITY (20.8M) and KEL (20.2 million).

    Sectors contributing to the performance include E&P (+63 points), Fertilizer (-87 points), Banks (-77 points), Pharma (-18 points), Autos (-12 points).

    Volumes declined over the day from 412.3 million shares to 322.9 million shares (-22 percent DoD). Average traded value also declined by 14 percent to reach US$ 94.8 million as against US$ 110.1 million.

    Stocks that contributed significantly to the volumes include TRG, UNITY, KEL, PAEL and FFL, which formed 30 percent of total volumes.

    Stocks that contributed positively include POL (+34 points), OGDC (+33 points), MCB (+24 points), HUBC (+18 points) and BAHL (+16 points). Stocks that contributed negatively include HBL (-78 points), ENGRO (-74 points), UBL (-29 points), SEARL (-10 points), and MARI (-10 points).