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Category: Stock & Commodity

  • Weekly Review: stock market likely to maintain buoyancy

    Weekly Review: stock market likely to maintain buoyancy

    KARACHI: The stock market likely to maintain its buoyancy during next week owing to economic improvement.

    Analysts at Arif Habib Limited said that index will continue it’s upward journey as the economy depicts signs of resurrection.

    Improvement on the external front together with stability in the Pak Rupee is expected to reassure foreign investors.

    Meanwhile inflationary readings are set to touch peak in January 2020 and with an imminent interest rate cut to follow, domestic investors remain jubilant as well.

    The KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 7.2x (2020) compared to Asia Pac regional average of 13.6x and while offering DY of ~7.8 percent versus ~2.6 percent offered by the region.

    The domestic equity bourse breached the 41,000 level this week (last seen in February 2019) albeit, settling at 40,917 points (up by 184 points and 0.45 percent WoW).

    This marks the highest index return in terms of percentage generated in seven consecutive weeks (+21.6 percent) in the past 10 years, last observed in September 2009.

    Although some profit-taking was witnessed throughout the week, a swift rally at the index on the last day reflects continued investor confidence on the back of improving macros (trade deficit narrowed by 33 percent during 5MFY20 and reserves held by the SBP jumped up to USD 9.23bn), and lower bond yields (under 11 percent for 10-year PIBs as per latest auction), which further opens up valuations.

    Sector-wise positive contributions came from i) Oil & Gas Exploration (273 points) as Pakistan invites Russia to acquire governments share in OGDC and PPL, ii) Chemical (54 points), iii) Food and personal care (47 points), iv) Fertilizer (42 points), and v) Tobacco (38 points). Scrip-wise positive contributions were led by OGDC (101 points), PPL (84 points), MARI (52 points), NESTLE (43 points) and POL (36 points).

    Foreign selling was witnessed this week clocking-in at USD 9.1 million compared to a net buy of USD 1.1 million last week. Selling was witnessed in E&P (USD 5.4 million) and Commercial Banks (USD 3.5 million).

    On the domestic front, major buying was reported by Individuals (USD 7.4 million) and Mutual Funds (USD 7.6 million). Average Volumes settled at 276 million shares (down by 41 percent WoW) while average value traded clocked-in at USD 67 million (down by 36 percent WoW).

  • Stock market gains 402 points as buying seen in major scrips

    Stock market gains 402 points as buying seen in major scrips

    KARACHI: The stock exchange gained 402 points on Friday owing to buying seen in major blue chip scrips.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,917 points as against 40,514 points showing an increase of 402 points.

    Analysts at Arif Habib Limited said that the market opened on a positive note today and took cue from higher international oil prices that caused PPL to hit upper circuit and OGDC to trade near upper circuit.

    Buying activity was mainly observed in Oil & Gas chain. Besides E&P stocks, SSGC and SNGP among O&GMCs also closed on upper circuits.

    Autos, Cement and Steel were generally among the laggards. Banking sector led the volumes with 37.9 million shares, followed by Vanaspati (28.2 million) and Technology (27.3 million).

    Among scrips, UNITY led the volumes with 28.2 million shares followed by BOP (14.8 million) and FFL (13.5 million).

    Sectors contributing to the performance include E&P (+168 points), Banks (+77 points), O&GMCs (+55 points), Textile (+28 points), Inv Banks (+14 points).

    Volumes increased from 227 million shares to 270.7 million shares (+19 percent DoD).

    Average traded value also increased by 39 percent to reach US$ 75.3 million as against US$ 54.3 million.

    Stocks that contributed significantly to the volumes include UNITY, BOP, FFL, AVN and OGDC, which formed 30 percent of total volumes.

    Stocks that contributed positively include PPL (+92 points), OGDC (+77 points), HBL (+34 points), PSO (+26 points) and SNGP (+20 points). Stocks that contributed negatively include FFC (-9 points), THALL (-8 points), ENGRO (-8 points), MLCF (-6 points), and MARI (-5 points).

  • Stock market ends flat amid selling pressure

    Stock market ends flat amid selling pressure

    KARACHI: The stock market witnessed a marginal decline of 17 points on Thursday despite selling pressures during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,514 points as against 40,531 points showing decline of 17 points.

    Analysts at Arif Habib Limited said that the market traded no different than what it has been since the beginning of the week.

    The index oscillated between -359 points and +238 points during the session and closing at -17 points. Selling pressure remained there, which was primarily been due to profit taking by investors. Yesterday’s decline in PIB yields failed to prop up the index.

    None of the listed sectors remained unscathed but the selling pressure was most witnessed in Cement sector.

    Going with the recent trend, Vansapati sector led the trading volumes with 37.7 million shares, followed by Technology (27.2 million) and Cement (23.1 million). Among scrips, UNITY led the table with 37.7 million shares followed by TRG (12.9 million) and FFL (10.9 million).

    Sectors contributing to the performance include E&P (+53 points), Tobacco (+32 points), Inv Banks (+27 points), Chemical (+13 points), O&GMCs (-26 points), Banks (-25 points), Cement (-21 points).

    Volumes declined from 305.1 million shares to 227 million shares (-26 percent DoD). Average traded value also declined by 22 percent to reach US$ 54.3 million as against US$ 70 million.

    Stocks that contributed significantly to the volumes include UNITY, TRG, FFL, BOP and KEL, which formed 35 percent of total volumes.

    Stocks that contributed positively include PAKT (+35 points), PPL (+24 points), DAWH (+20 points), OGDC (+20 points) and COLG (+13 points). Stocks that contributed negatively include BAHL (-24 points), SNGP (-16 points), HUBC (-14 points), TRG (-12 points), and SEARL (-12 points).

  • Stock market declines by 133 points on selling pressure

    Stock market declines by 133 points on selling pressure

    KARACHI: The stock market ended down by 133 points on Wednesday owing to selling pressure witnessed during the day.

    The benchmark KSE-100 of Pakistan Stock Exchange (PSX) closed at 40,531 points as against 40,664 points showing a decline of 133 points.

    Analysts at Arif Habib Limited said that the market replicated yesterday’s performance, the index traded range bound from +247 points to -214 points during the session and closed the session at low ebb.

    At the start of session, index opened on a positive note with +77 points and 3.74 million shares traded on opening. Volumes improved over the day and cross 300 million mark again.

    Selling pressure was evident almost across the board, but mostly observed in Oil & Gas chain and Banks. Cement sector led the volumes with 44.6 million shares followed by Vanaspati (44.5 million) and Banks (31.8 million).

    Among scrips, UNITY topped with 44.5 million shares, followed by POWER (16.3 million) and PAEL (15.6 million).

    Sectors contributing to the performance include Banks (-50 points), Power (-44 points), Cement (-28 points), Inv Banks (-23 points), Autos (-20 points), Chemical (+14 points), and Textile (+11 points).

    Volumes increased from 254.7 million shares to 305.1 million shares (+20 percent DoD). Average traded value also increased by 18 percent to reach US$ 70.0 million as against US$ 59.5 million.

    Stocks that contributed significantly to the volumes include UNITY, POWER, PAEL, BOP and KEL, which formed 34 percent of total volumes.

    Stocks that contributed positively include MARI (+37 points), FFC (+14 points), COLG (+13 points), SYS (+9 points) and SHFA (+7 points). Stocks that contributed negatively include PPL (-32 points), HUBC (-28 points), DAWH (-18 points), MCB (-18 points), and LUCK (-13 points).

  • Stock market gains 222 points amid cautious buying

    Stock market gains 222 points amid cautious buying

    The Pakistan Stock Exchange (PSX) experienced a moderate rise on Tuesday, with the benchmark KSE-100 index closing up by 222 points, settling at 40,665 points compared to the previous close of 40,443 points.

    (more…)
  • Stock market falls by 289 points in narrow range trading

    Stock market falls by 289 points in narrow range trading

    KARACHI: The stock market fell by 289 points on Monday owing to narrow range trading activity.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,443 points as against 40,732 points showing a decline of 289 points.

    Analysts at Arif Habib Limited said that the market opened on a positive note today at +72 points and 1.3 million shares traded at opening.

    The benchmark index went up by 184 points in the morning and largely traded in a narrow range for good part of the session.

    Near close of session market saw profit booking, which brought the index down by 417 points and closed the session at -289 points. Banking, OMCs, Steel, Autos and Cement sector stocks saw major sell off.

    Cement sector led the volumes table with 44.3 million shares, followed by Chemical (37.4 million) and O&GMCs (31.4 million). Among scrips, UNITY led the volumes with 26.8 million shares, followed by MLCF (18.7 million) and LOTCHEM (15.4 million).

    Sectors contributing to the performance include Banks (-152 points), Cement (-65 points), O&GMCs (-58 points), Power (-45 points), Autos (-27 points), Fertilizer (+27 points), E&P (+24 points), Food (+22 points).

    Volumes declined further from 417.1 million shares to 320.1 million shares (-23 percent DoD). Average traded value also declined by 25 percent to reach US$ 73.5 million as against US$ 97.9 million.

    Stocks that contributed significantly to the volumes include UNITY, MLCF, LOTCHEM, PAEL and HASCOL, which formed 27 percent of total volumes.

    Stocks that contributed positively include ENGRO (+23 points), NESTLE (+18 points), OGDC (+13 points), MARI (+10 points) and EPCL (+8 points). Stocks that contributed negatively include UBL (-60 points), HBL (-37 points), LUCK (-35 points), PSO (-33 points), and HUBC (-30 points).

  • Weekly Review: market likely to continue positive momentum

    Weekly Review: market likely to continue positive momentum

    KARACHI: The stock market likely to continue its positive momentum next week on the back of continuous improvement in the macroeconomic situation of the country.

    Analysts at Arif Habib Limited said that foreign interest in the equity as well as debt markets posits healthy signs for overall investment climate going forward.

    The KSE-100 index is currently trading at a PER of 7.1x (2020) compared to Asia Pac regional average of 13.4x and while offering DY of around 7.9 percent versus around 2.6 percent offered by the region.

    Trading in the green continued this week as the index continued its bullish momentum as the banking sector led the charge this week.

    The current week saw Moody’s changing its outlook on Pakistan from “Negative” to “Stable” on account of improving external account position of the country on the back of the government’s corrective measures.

    This was followed by up-gradation of outlook to “stable” for the Big 5 banks, spurring buying activity in the banking sector.

    Trade deficit data came this week as well which once again saw an improvement, declining 36 percent YoY during November 2019.

    Consolidation of the country’s reserves continued, as SBP reserves touched an 8 month high at USD 9.1 billion. The KSE-100 Index settled at 40,732 points (up 1445 points WoW).

    Sector-wise positive contributions came from i) Commercial banks (645 points), ii) Oil & Gas Marketing (131 points), and iii) Power Generation & Distribution (97 points) iv) E&P (84 points), and v) Insurance (79 points). Scrip-wise positive contributions were led by HBL (155 points), MCB (144 points), UBL (87 points), BAFL (78 points) and HUBC (75 points).

    Foreign buying was witnessed this week clocking-in at USD 1.1 million compared to a net sell of USD 8.1 million last week. Buying was witnessed in Fertilizer (USD 8.4 million) and OMCs (USD 2.2 million).

    On the domestic front, major selling was reported by Banks / DFIs (USD 22.3 million) and Other Organization (USD 3.3 million). Average Volumes settled at 465 million shares (up by 34 percent WoW) while average value traded clocked-in at USD 105 million (up by 31 percent WoW).

  • SECP issues qualified capital criteria for NBFCs

    SECP issues qualified capital criteria for NBFCs

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Friday issued criteria for qualified capital and its terms and condition for Non-Banking Finance Companies (NBFCs).

    The criteria have been issued for those NBFCs which exclusively in the business of issuance of guarantees to enhance the quality debt instruments issued to finance infrastructure projects in Pakistan, namely:

    Qualified capital means the aggregate of callable capital and contingent capital (including any drawdown threunder);

    Explanation: For the purpose of this clause the expressions:

    i. Callable Capital means share capital that, in terms of written agreement entered into between the NBFC and sponsor, shareholder and/or investor, as the case may be, is agreed to be subscribed on the following terms and conditions:

    a. the shares shall be fully subscribed over a period of 24 months from the date of the written agreement;

    b. during the subscription period specified in sub-clause (a), the obligation to subscribe to shares shall be irrevocable and on demand, at the sole discretion of the NBFC; and

    c. the subscription obligation shall be secured by a bank guarantee or standby letter for credit from a commercial bank rated AAA or higher by a credit rating agency registered with the commission;

    ii. Contingent Capital means long term commitment for finance that, in terms of a written agreement entered into between the NBFC and a Qualified Financial Institution(s), is provided as a second loss facility on the following terms and conditions:

    a. at any time, the contingent capital, in aggregate, shall not exceed one and a half times of the sum of paid up share capital and callable capital of the NBFC;

    b. the commitment shall, in accordance with the terms thereof, be irrevocable, confirmed and fully committed;

    c. the long term commitment and the finance thereunder shall be available on a revolving basis;

    d. the finance under the commitment shall be callable and demand upon a capital event and the sole discretion of the NBFC or on a direction by the Commission (after giving the NBFC a reasonable opportunity of a hearing), which shall be binding on the NBFC; and

    e. the commitment shall be replaced by the NBFC if the financing entity ceases to be a qualified financial institution;

    iii. Qualified Financial Institution means a local or a international or multilateral financial institution rated AAA by a credit rating agency registered with the Commission;

    iv. Capital Event means the depletion of the equity (after the callable capital has been completely drawn down by the NBFC) of the NBFC.

    Terms and Conditions:

    i. The NBFC shall not take any exposure against the qualified capital unless it has obtained a certificate from its statutory auditor that all the requirements have been complied with;

    ii. The certificate shall be supported by a legal opinion from a reputed law firm and a copy of the certificate along with the legal opinion shall be submitted to the commission: and

    iii. With regard to its qualified capital, the NBFC, in relevant notes to its financial statements, shall make disclosures, which are necessary for the users to understand its salient features.

  • Stock market gains 91 points amid selling pressure

    Stock market gains 91 points amid selling pressure

    KARACHI: The stock market gained 91 points on Friday amid selling pressure witnessed in the market.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,732 points as against 40,641 points showing an increase of 91 points.

    Analysts at Arif Habib Limited said that the market opened on a positive note, closed the first session +176 points and went as high as +347 points.

    MoC faced selling pressure, bringing the index down and closing +91 points. Sectors performing E&P and O&GMCs.

    Selling pressure, on the other hand was largely witnessed in Banking sector, which have so far seen massive rally and faced profit booking.

    Cement sector also saw selling pressure. Cement sector led the volumes table with 84.8 million shares, followed by Vanaspati (53.5 million) and Technology (35.2 million).

    Among scrips, UNITY saw volumes of 53.5 million shares followed by FCCL (31.9 million) and MLCF (18.6 million).

    Sectors contributing to the performance include E&P (+64 points), Food (+30 points), Insurance (+21 points), Fertilizer (+23 points) and Chemical (+15 points).

    Volumes declined from 507.9 million shares to 416.1 million shares (-18 percent DoD). Average traded value also declined by 25 percent to reach US$ 97.7 million as against US$ 129.8 million.

    Stocks that contributed significantly to the volumes include UNITY, FCCL, MLCF, FFL and MLCFR1, which formed 32 percent of total volumes.

    Stocks that contributed positively include PPL (+34 points), BAHL (+30 points), HUBC (+26 points), EFERT (+23 points) and OGDC (+23 points). Stocks that contributed negatively include PSO (-27 points), HBL (-21 points), SEARL (-15 points), KAPCO (-14 points), and LUCK (-14 points).

  • Stock market gains 371 points on improved rating of top banks

    Stock market gains 371 points on improved rating of top banks

    KARACHI: The stock market gained 371 points on Thursday owing to improved rating of top five banks of Pakistan.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,641 points as against 40,271 points showing an increase of 371 points.

    Analysts at Arif Habib Limited said that following up the country ratings, Moody’s improved the rating for 5 Pakistan Banks as well, which caused the price gains in banking sector stocks in general, besides buying activity in cyclicals.

    News of increase in cement dispatches over the 5 month period also gave confidence to investors to invest in Cement as well as Steel sector.

    The benchmark KSE100 index recorded highest traded value for CY2019 so far with US$ 129.6 million. Traded volumes also crossed 500 million mark again with majority in Cement sector (111.6 million), followed by Banks (51.4 million) and Power (36.6 million).

    Among scrips, UNITY registered volumes of 35.2 million shares followed by FCCL (34 million) and MLCF (20.5 million).

    Sectors contributing to the performance include Banks (+105 points), E&P (+80 points), O&GMCs (+55 points), Cement (+54 points) and Fertilizer (+29 points).

    Volumes increased significantly from 393.2 million shares to 507.5 million shares (+29.1 percent DoD). Average traded value also increased by 36 percent to reach US$ 129.6 million as against US$ 95.4 million.

    Stocks that contributed significantly to the volumes include UNITY, FCCL, MLCF, KEL and TRG, which formed 25 percent of total volumes.

    Stocks that contributed positively include PPL (+53 points), HBL (+42 points), PSO (+28 points), POL (+26 points) and NBP (+24 points). Stocks that contributed negatively include GLAXO (-9 points), MARI (-9 points), DAWH (-8 points), MTL (-7 points), and KAPCO (-5 points).