Category: Stock & Commodity

KARACHI: The equity market plunged by 600 points on Monday owing to reports of possible border confrontation between Pakistan and India.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 36,922 points as against 37,522 points showing a decline of 600 points.

Analysts at Arif Habib Limited said that negative news flow over the weekend, especially possible border confrontation between Pakistan and India, as highlighted by Foreign Minister, in addition to macro-economic woes added to deficit of Investor confidence.

The index slid by 783 points during the session and closed 600 points down.

Cement blue chips hit lower circuits, especially LUCK, DGKC and MLCF that contributed to decline in KSE100. Cement Sector topped volumes table with 20 million shares, followed by Power and Banks. Among Scrips, KEL registered highest traded volume of 10.9 million shares followed by FCCL (9.5 million).

Sectors contributing to the performance include Cement (-120 points), Banks (-79 points), Fertilizer (-59 points), O&GMCs (-59 points), E&P (-58 points).

Volumes increased slightly from 101.7 million shares to 106.9 million shares (+5 percent DoD). Average traded value also increased by 9 percent to reach US$ 28.9 million as against US$ 26.6 million.

Stocks that contributed significantly to the volumes include KEL, FCCL, UNITYR1, BOP and MLCF, which formed 38 percent of total volumes.

Stocks that contributed positively include HUBC (+17 points), HBL (+10 points), NESTLE (+9 points), FABL (+6 points), and IGIHL (+3 points). Stocks that contributed negatively include LUCK (-56 points), ENGRO (-26 points), MCB (-24 points), SEARL (-22 points) and PSO (-22 points).

KARACHI: The equity market likely to stay positive in coming weeks as the expected staff level meeting of IMF is scheduled in April 2019.

Analysts at Arif Habib Limited said that this will revive the market sentiment.

Moreover, interest rate is expected to peak following another 50 basis points hike in May 2019; which will bring clarity to the investors.

On the currency front, the analysts expect the Pak Rupee to settle at 147/USD by June 2019.

Moreover, result of offshore drilling at Indus offshore block G ‘Kekra-1’ is also expected within six weeks, where materialization of oil / gas discovery will drive the market in general and OGDC and PPL in particular.

The analysts said that this week trading commenced on a negative note despite China depositing USD 2.2 billion to support the balance of payments position and depleting foreign exchange reserves which crossed the USD 17 billion mark.

Market activity remained depressed on the back of i) 50bps increase in policy rate augmenting pressure on leveraged industries, ii) higher than expected inflationary readings; at 9.41 percent YoY in March 2019 (5-year high), iii) continuous depreciation of PKR against the Greenback, iv) delay in finalisation of the IMF program which is now expected by May, and v) projected slowdown by the Asian Development Bank of Pakistan’s GDP to 3.9 percent.

The benchmark KSE-100 of Pakistan Stock Exchange (PSX) closed at CY19’s lowest level of 37,522 points, down by 1,128 points or 2.92 percent WoW.

Contribution to the downside was led by i) Commercial Banks (-383 points) due to foreign selling, ii) Fertilizer (-134 points) amid announcement of 100,000 tons of urea import, iii) Oil and Gas Marketing Companies (-35 points) on account of slowdown in petroleum off-take by 17 percent YoY in Mar’19, iv) Pharmaceuticals (-92 points), and v) Power Generation and Distribution (-67 points). Scrip wise major losers were HBL (-122 points), UBL (-71 points), PPL (-58 points), ENGRO (-51 points), and PSO (-47 points). While the only sector that contributed positively to the index was Miscellaneous (+57 points).

Foreign selling witnessed this week clocked in at USD 3.7 million compared to a net buy of USD 0.5 million last week.

Major selling was witnessed in Fertilizer (USD 1.6 million) and Power Generation (USD 1.6 million).

On the local front, buying was reported by Individuals (USD 5.5 million) followed by Banks / DFIs (USD 4.7 million).

That said, average daily volumes for the outgoing week were down by 7.5 percent to 118.7 million shares likewise value traded declined by 20.4 percent to USD 24.9 million.

The Pakistan stock market witnessed a subdued trading session on Friday as investors showed a lack of interest in blue-chip stocks.

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KARACHI: The equity market declined by 507 points on Thursday due to selling pressure.

The benchmark KSE-100 index closed at 37,516 points as against 38,023 points showing a decline of 507 points.

Analysts at Arif Habib Limited said that the market took a nose-dive today with 100 index touching a low of 610 points and closed heavy red.

Selling was seen across the board amidst rumors of resignation of key government official and change of parliamentary form of government to Presidential format.

Initial start saw some positivity, however, selling pressure built throughout the day and stocks like Autos which performed well on the news of revocation of 10 percent FED on 1700cc and above vehicles couldn’t face the tide and eventually saw erosion of price gains made earlier.

UNITY rights (37.5 million) again contributed significantly to the traded volume 128 million, which was followed by Banks and Technology stocks.

Sectors contributing to the performance include Banks (-92 points), E&P (-72 points), Power (-66 points), Cement (-50 points), O&GMCs (-35 points).

Volumes declined from 153.3 million shares to 128.0 million shares (-17 percent DoD). Average traded value also declined by 9 percent to reach US$ 23.8 million as against US$ 26.3 million.

Stocks that contributed significantly to the volumes include UNITYR1, WTL, KEL, BOP and MLCF, which formed 56 percent of total volumes.

Stocks that contributed positively include MCB (+20 points), FFBL (+9 points), MEBL (+7 points), SRVI (+3 points), and APL (+3 points). Stocks that contributed negatively include HUBC (-53 points), UBL (-38 points), PPL (-25 points), HBL (-22 points) and ENGRO (-22 points).

The Pakistan Stock Exchange (PSX) witnessed a modest decline on Wednesday, with the benchmark KSE-100 index closing down by 13 points, ending the day at 38,023 points compared to the previous session.

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KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) witnessed decline of 319 points on Tuesday owing to selling pressure.

The index closed at 38,036 points as against 38,355 points showing a decline of 319 points.

Analysts at Arif Habib Limited said that the market went down eventually after making a positive stride of 203 points in the beginning but lost 356 points (unadjusted) by the end of session.

Blue chips remained under selling pressure and despite high trading volume in scrips like LUCK, the scrip saw heavy selling pressure.

Volumes were largely seen in UNITY right (63M) as compared with total market volume of 144M shares. Last half hour of trading saw selling pressure increased which was mainly contributed by HBL and UBL. HBL saw buying interest close to lower circuit.

Sectors contributing to the performance include Banks (-117 points), O&GMCs (-40 points), Power (-37 points), E&P (-19 points), Textile (-16 points).

Volumes increased again from 65.9 million shares to 144.4 million shares (+119 percent DoD). Average traded value also increased by 39 percent to reach US$ 27.7 million as against US$ 19.9 million.

Stocks that contributed significantly to the volumes include UNITYR1, KEL, UNITY, MLCF and HUBC, which formed 62 percent of total volumes.

Stocks that contributed positively include PSEL (+21 points), FFC (+8 points), POL (+5 points), SHFA (+4 points), and TRG (+2 points). Stocks that contributed negatively include HBL (-53 points), HUBC (-23 points), PSO (-19 points), MCB (-16 points) and SNGP (-13 points).

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Equity market falls by 295 points on policy rate hike

KARACHI: The equity market fell by 295 points on Monday owing to hike in discount rate by 50 basis points.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 38,355 points as against 38,650 points showing a decline of 295 points.

Analysts at Arif Habib Limited said that the market dipped today on the back of recent rate hike by SBP that increased the discount rate by 50bps to 10.75 percent.

As an aftermath, the stock prices adjusted downwards although the decision of rate hike was in line with expectation.

Exceptions to downward price adjustment were mainly banking sector, which has a positive correlation to interest rate hikes.

Volume was led by UNITY right, which has been in the limelight since last week. Other than that the volumes were generally seen in Bank, Cement and Power Sectors.

Sectors contributing to the performance include Power (+47 points), Miscellaneous (+22 points), Fertilizer (-83 points), E&P (-56 points), Banks (-56 points), Cement (-53 points), Pharma (-30 points).

Volumes declined significantly from 137.7 million shares to 65.9 million shares (-52 percent DoD). Average traded value also declined by 46 percent to reach US$ 19.9 million as against US$ 36.8 million.

Stocks that contributed significantly to the volumes include UNITYR1, BOP, SNGP, KEL and MLCF, which formed 47 percent of total volumes.

Stocks that contributed positively include HUBC (+72 points), PSEL (+23 points), BAFL (+7 points), EFUG (+7 points), and SYS (+6 points). Stocks that contributed negatively include PPL (-35 points), LUCK (-28 points), ENGRO (-28 points), BAHL (-25 points) and DAWH (-22 points).

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Weekly Review: Market to remain range bound

KARACHI: The stock market likely to remain range bound in the upcoming week amid lack of triggers.

Analysts at Arif Habib Limited said that with the State Bank of Pakistan raising the key discount rate by 50 bps, leveraged sectors such as Cements, Steel, Fertilizers, OMCs and Textiles may come under pressure while banks could support the index.

The market commenced on a negative note this week, shedding 403 points on Monday.

Expectations of a rate hike and potential pressure on leveraged sectors kept the market dull.

However, IMF team’s visit to Pakistan and news flow regarding consensus on economic policies later in the week created a positive momentum.

Moreover, USD 2.2 billion loan from China took the weekly reserves to USD 17 billion. With this, the KSE-100 Index gained 117points (up by 0.3 percent WoW) closing at 38,649 points.

Positive sector-wise contributions came from i) Oil & Gas Marketing Companies (+76 points), ii) Fertilizer (+41 points), iii) Automobile Assembler (+36 points), iv) Pharmaceuticals (+25 points) and v) Engineering. On the flip side, sectors that contributed negatively include i) Power Generation & Distribution (-52 points), ii) Food & Personal Care Products (-23 points) and Insurance (-23 points).

Scrip-wise major positive contributions came from SNGP (+38 points), MTL (+30 points), BAHL (+30 points), ENGRO (+24 points), and UBL (+24 points).

Scri points that contributed negatively includes HBL (-64 points), HUBC (-54 points) and NESTLE (-29 points).

Foreign buying continued this week clocking-in at USD 0.5 million compared to a net buy of USD 3.1 million last week. Buying was witnessed in Commercial Banks (USD 2.6 million) and Exploration & Production (USD 1.1 million).

On the domestic front, major selling was reported by Individuals (USD 5.4 million) and Companies (USD 5.0 million). Volumes settled at 128 million shares (up 53 percent WoW) while value traded clocked in at USD 31 million (up 10 percent WoW).

Other major news: i) Gwadar terminal developer plans IPO for $85 million project, ii) SNGPL, SSGCL seek hefty tariff hike from next fiscal year, iii Descon, CGGC awarded Mohmand Dam Project, iv) Govt to raise Rs2 per unit on power tariff to collect Rs200 billion, and v) Pakistan weighs LNG imports from Saudi, Malaysia.