Tag: KSE-100

KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) has posted 7.3 percent growth during the year 2020 as one day is still remaining to conclude the year.

Analysts at Topline Securities on Wednesday said that Pakistan benchmark KSE100 index gained 7.3 percent (USD: 3.6 percent) in 2020 (one trading session left). The return in USD terms during 2020 is better than -1.8 percent of 2019, however lower than the last ten year average of 10 percent.

“The year 2020 was a story of two halves for Pakistan equities as the first half witnessed a decline of 15.5 percent (USD: -22 percent), while a robust recovery was seen in the second half as the benchmark index recovered by 26.9 percent (USD 33.1 percent). Just like peers, PSX rallied 60.5 percent from its bottom on Mar 25, 2020.”

Interestingly, despite lower broader market return, few mid cap stocks have posted a billion normal returns (adjusted) namely TRG (up 270 percent), SYS (up 242 percent), PIOC (up 234 percent) and CEPB (up 200 percent).

Pakistan under performed MSCI Emerging Market and MSCI World indices. However, against MSCI Frontier Market, PSX outperformed as MSCI FM declined by 4 percent.

During 2020, Pak Equities gain of 7.3 percent was also lower than Gold and PIBs return of 28 percent and 17 percent, respectively.

Activity at PSX increased significantly, due to a rally in mid-caps led by local investors. Traded volume and value in 2020 was 328 million shares/day and Rs12 billion (US$75 million)/day, respectively.

The analysts said that KSE-100 may touch 52.5,000 mark in 2021 due to strong corporate earnings growth along with re-rating. Four key triggers to watch out for during 2021 will be (1) COVID-19, (2) IMF, (3) foreigners activity and (4) politics.

KSE-100 Index under performed its peers and global benchmarks during 2020.

The benchmark index posted a US Dollar return of 4 percent compared to MSCI Emerging Market return of 12 percent and MSCI Developed and World Market return of 13 percent.

However, PSX outperformed MSCI Frontier Markets as its value declined by 4 percent.

The benchmark index also under performed its peer countries with Bangladesh, India, Sri Lanka amongst top markets during 2020 (refer to below).

Overall traded volume (ready/cash) at PSX averaged at 328 million shares/day (+107 percent YoY) in 2020, highest after 15 years.

Similarly, traded value also increased to an average of Rs12 billion/day (or US$75 million/day), up 106 percent from 2019 and most after 12 years.

In the futures market, PSX volumes were also at a 15 year high of 101 million shares/ day. Similarly, traded value in futures is at a 12 year high of Rs4.7 billion/day (or US$29 million/day).

Most activity, in terms of average volumes, was witnessed in small and mid cap stocks like HASCOL (21 million shares/day), UNITY (20 million shares/day), TRG (16 million shares/day),MLCF (15 million shares/day) and KEL (13 million shares/day).

In value terms, the most activity was seen in TRG with an average value of Rs746 million/day, LUCK (Rs564 million/day), MLCF (Rs481 million/day), DGKC (Rs474 million/day), and PPL (Rs368 million/day).

Amongst market participants, share of individuals in total activity increased from 60 percent to 63 percent while foreigners share dropped from10 percent to 7 percent in 2020.

Settlement Ratio (UIN) during 2020 dropped to an average of 56.6 percent from 60.9 percent in 2019. Leverage to Market capitalization increased to 0.26 percent compared to 0.18 percent in 2019.

Foreigners continued to remain sellers to the tune of US$570 million, highest in more than a decade. Cumulative selling in the last six years has amounted to US$2.2 billion.

This non stop selling could be attributed to closure of few frontier market funds, under performance of Emerging and Frontier markets and negligible weight of PSX in MSCI Emerging Market

Highest foreign selling was witnessed in the Banking sector with a net outflow of US$176 million followed by E&Ps (US$125 million) and Cements (US$107 million).

Most of the selling in these sectors was absorbed by local insurance companies, and local individuals.

According to SBP data, widely followed, foreign portfolio investment stands at US$3.0 billion (high of US$8.4 billion on May 26, 2017 and low of US$1.0 billion on Mar 14, 2009). Within this (US$3 billion), our estimates suggest that, around US$0.5 billion-1 billion is strategic holdings of sponsors.

That said, remaining US$2 billion is 4 percent of market capitalization and 13 percent of free float capitalization.

The analysts hoped that US$200-300 million net foreign selling during 2021, where the overall outlook of Emerging and Frontier Markets is also improving.

Gold remained the most value generator asset class for investors for the second consecutive year by posting a return of 29 percent in (PKR Terms). Gold prices increased significantly due to tough economic conditions globally amidst COVID-19 outbreak as its considered a safe haven during times of global turmoil.

Fixed Income return (10-year PIB) was 17 percent in 2020, higher than equities return of 7.3 percent.

Real Estate posted a return of 2 percent during the year (2019: 5 percent. The performance of this asset in 1H2020 was poor (-1 percent) just like equities, however it rebounded in 2H2020 by 4 percent after the announcement of the construction package in July 2020.

USD remained relatively stable (+4 percent) against PKR compared to the previous two years’ average gain of 19 percent. Stability in this asset class is due to higher than expected remittances resulting in a Current Account surplus during 5MFY21 and overall weakness of the US Dollar.

The KSE-100 Index has outperformed Emerging and Frontier markets over the last 10 years as PSX 10-Year US$ based CAGR is 7 percent, higher than 1 percent of MSCI Emerging Markets and MSCI Frontier Market decline of 1 percent.

However, performance of PSX has remained in line with MSCI Developed Market and MSCI World indices.

Amongst different asset classes in Pakistan, PSX has outperformed others by posting the highest return of 14 percent a year during the last 10 years. This was followed by Gold’s return of 10 percent and T-bills’ return of 9 percent.

KARACHI: The stock market gained 413 points on Wednesday as buying activities witnessed during the day after positive oil prices in international trade.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 43,695 points as against previous day’s close of 43,282 points showing an increase of 413 points.

Analysts at Arif Habib Limited said that the market regained the points lost yesterday in the aftermath of selling from financial institutions.

Buying activity was cautious in the beginning and gained momentum as the day progressed especially in the absence of active selling.

International crude oil prices traded positive but in a narrow band that offered no incentive for the seller to book profit at this stage.

Buying activity was witnessed in Textile, Banks and O&GMCs in anticipation of change / announcement of government policies. Among scrips, PRL led the table with 55.2 million shares, followed by TRG (31.2 million) and UNITY (18.5 million).

Sectors contributing to the performance include Technology (+92 points), Banks (+50 points), Textile (+44 points), E&P (+32 points), Food (+28 points).

Volumes declined from 501.4 million shares to 455.8 million shares (-9 percent DoD). Average traded value increased by 8 percent to reach US$ 141.4 million as against US$ 130.8 million.

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

Stocks that contributed positively to the index include TRG (+63 points), SYS (+30 points), UBL (+29 points), POL (+25 points) and KTML (+18 points). Stocks that contributed negatively include BAHL (-27 points), FCCL (-5 points), KEL (-4 points), MARI (-3 points) and SHEL (-2 points).

KARACHI: The stock market posted a decline of 392 points on Tuesday owing to year-end profit booking and new strain of coronavirus.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 43,282 points as against previous day’s close of 43,674 points showing a decline of 392 points.

Analysts at Arif Habib Limited said that the market was dominated by mark to market activity by institutions (as today’s settlement falls on December 31^st) as well as partly due to profit booking.

Stocks having high weightage on Index (OGDC, PPL, HBL, UBL, MCB) traded at and near similar rates as they were on September 2020 end.

Positive news abound, Investors resorted to profit booking today which was evident in E&P, Banks, Cement, Power and Fertilizer sectors with the view that they will be able to buy back at lower rates.

Incidence of new strain of corona cases also caused concern among Investors. Among scrips, UNITY topped the volumes with 41.3 million shares, followed by KEL (38.1 million) and PRL (32 million).

Sectors contributing to the performance include Banks (-136 points), E&P (-78 points), Cement (-71 points), Fertilizer (-60 points) and Power (-46 points).

Volumes increased from 463.4 million shares to 501.3 million shares (+8 percent DOD). Average traded value also increased by 11 percent to reach US$ 130.7 million as against US$ 117.8 million.

Stocks that contributed significantly to the volumes include UNITY, KEL, PRL, TRG and PAEL, which formed 33 percent of total volumes.

Stocks that contributed positively to the index include SEARL (+14 points), TRG (+13 points), MEBL (+11 points), UNITY (+9 points) and AKBL (+8 points). Stocks that contributed negatively include HBL (-63 points), MCB (-42 points), HUBC (-42 points), UBL (-38 points) and ENGRO (-35 points).

KARACHI: The share market gained 329 points on Thursday owing to mixed trading activities during the day.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 43,417 points as against previous day’s closing of 43,088 points showing an increase of 329 points.

Analysts at Arif Habib Limited said that last day of the rollover week ended with fanfare adding a total of 544 points during the session and ending +329 points.

On a weekly basis, the Index gained ~450 points after losing around 1200 points in the first two sessions of the week.

Overnight jump in international crude oil prices helped E&P stocks staged decent recovery, however, profit booking kept the stock price increase in check.

Cement sector performed comparatively better on the back of healthy dispatches, which was further aided by consistent buying interest in Banking sector stocks from the local investors.

Among scrips, UNITY led the table with 46.6 million shares, followed by TRG (37.2 million) and MLCF (34.6 million).

Sectors contributing to the performance include Cement (+158 points), Technology (+91 points), Banks (+23 points), Vanaspati (+22 points), Fertilizer (-16 points) and Pharma (-11 points).

Volumes sprung back from 379.9 million shares to 571 million shares (+50 percent DoD). Average traded value also increased by 44 percent to reach US$ 159.1 million as against US$ 110.5 million.

Stocks that contributed significantly to the volumes include UNITY, TRG, MLCF, GGLR1 and ANL, which formed 28 percent of total volumes.

Stocks that contributed positively to the index include TRG (+65 points), LUCK (+65 points), CHCC (+28 points), SYS (+25 points) and UNITY (+22 points). Stocks that contributed negatively include MEBL (-20 points), ENGRO (-10 points), PSO (-7 points), FFC (-6 points) and DAWH (-4 points).

KARACHI: The share market gained 181 points on Wednesday as buying activity witnessed during the day.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) Index closed at 43,088 points as against previous day’s close of 42,907 points showing an increase of 181 points.

Analysts at Arif Habib Limited said that after posting a loss of around 1200 points since last Friday, market moved cautiously taking cue from stability in international crude oil prices as well as renewed buying activity in Cement sector scrips that added a total of 309 points during the session and closing +181 points.

Besides Cement, Investors opted for Banks (HBL), O&GMCs (PSO), E&P (OGDC & PPL) and Engineering / Steel (ISL, INIL) that helped stage recovery in Index.

Rollover week will end tomorrow, however, the pertinent scrips (UNITY, TRG and NETSOL) have largely covered ground to cause any concern. Among scrips, PRL topped the volumes with 26.9 million shares, followed by MLCF (17.7 million) and TRG (16.2 million).

Sectors contributing to the performance include Cement (+81 points), Autos (+19 points), Engineering (+18 points), Banks (+17 points) and Insurance (+17 points).

Volumes declined from 561.8 million shares to 378.9 million shares (-33 percent DoD). Average traded value also declined by 22 percent to reach US$ 110.5 million as against US$ 140.9 million.

Stocks that contributed significantly to the volumes include PRL, MLCF, TRG, ICIBL and UNITY, which formed 24 percent of total volumes.

Stocks that contributed positively to the index include MLCF (+21 points), HBL (+20 points), LUCK (+18 points), ENGRO (+18 points) and CHCC (+13 points). Stocks that contributed negatively include MARI (-17 points), KTML (-10 points), POL (-10 points), FFC (-10 points) and MEBL (-9 points).

KARACHI: The stock market fell by 445 points on Tuesday due to selling pressure observed during the day.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 42,889 points as against the previous day’s close of 43,334 points showing a decline of 445 points.

Analysts at Arif Habib Limited said that the market opened on a positive note today and added 145 points on the board, before collapsing under the selling pressure from E&P, Banks and Cement sector stocks.

International crude oil prices remained subdued after yesterday’s blow and caused selling pressure in E&P stocks.

Similarly, foreign investors have been spring cleaning their holdings in the banking sector, before the close of the Calendar year, which has played a significant role in bringing the index as compared to the general ‘ill-founded’ notion of rollover week pressure. WTL snatched the top slot in trading volumes by posting 70.7 million, followed by ICIBL (30.8 million) and TRG (23.6 million).

Sectors contributing to the performance include Banks (-102 points), E&P (-54 points), Cement (-38 points), Technology (-35 points) and Autos (-31 points).

Volumes increased from 516.4 million shares to 561.9 million shares (+9 percent DoD). Average traded value maintained the level at US$ 140.9 million as against US$ 140.3 million (+0.4 percent DoD).

Stocks that contributed significantly to the volumes include WTL, ICIBL, TRG, TELE and PRL, which formed 30 percent of total volumes.

Stocks that contributed positively to the index include GHGL (+12 points), FFC (+10 points), SHEL (+9 points), ILP (+7 points) and KTML (+6 points). Stocks that contributed negatively include TRG (-40 points), PPL (-32 points), UBL (-25 points), MCB (-23 points) and ENGRO (-23 points).

KARACHI: Pakistan Stock Exchange (PSX) has announced the recipients of the Top 25 Companies Awards for the year 2019, a statement said on Monday.

As per tradition, the criteria for selecting such companies was also updated and upgraded in 2019 in line with the evolving business environment and requirements.

For the said year, the pre-requisites included a minimum distribution of 30 percent (including at least 15 percent cash dividend), shares traded 50 percent of the total trading days during the year, and that the company is not in the Defaulters’ Segment of the Exchange or trading in its shares have not been suspended on account of violation of Listing Companies & Securities Regulations of the Exchange during the said year.

The Top 25 Companies Award is a tradition at Pakistan Stock Exchange which goes back to 1978. Historically, the best performing listed companies in Pakistan are awarded this distinction.

Broadly speaking, companies which have outperformed others in the spheres of corporate governance, financial performance, and have added to shareholder value based on specific quantitative criteria, amongst other factors, make it to the Top 25 Companies List.

This award takes into account the excellent performance metrics of such companies and recognizes the able guidance of their boards and strong management.

By awarding and recognizing such role models, Pakistan Stock Exchange seeks to promote more such listed companies to come to the fore and make their rightful claim on the award by virtue of their excellent performance and contribution to Pakistan’s economy.

On the announcement of the Top 25 Companies Awards recipients, the MD & CEO of Pakistan Stock Exchange, Farrukh H. Khan, stated, “Top 25 Companies Award is the most prestigious recognition of overall corporate performance in Pakistan. I would like to congratulate all the companies that have achieved this distinction for 2019.

“They are leaders and role models for other corporates to emulate. These companies have created tremendous shareholder value, contributed significantly to Pakistan’s economy and have projected a positive image of Pakistan globally.”

He further stated, “I am also excited to share that for the year 2020, PSX has further improved the criteria for the Top 25 Companies award to take into account current trends and developments in the investment industry. This includes focus on total shareholder returns rather than just dividends, reporting on diversity and sustainable development goals (SDGs), amongst others changes.“

In 2019, the distribution of marks awarded to the companies was based on the criteria of Capital Efficiency (20.5 percent marks), Dividend Distribution including Bonus (20 percent marks), Growth in Operating Revenue (6 percent marks), Change in EBITDA Margin (6 percent marks), Free-float of Shares (10 percent marks), Turnover of Shares (2.5 percent marks), Corporate Governance & Investor Relation (35 percent marks). This brings the total to 100 percent marks signifying the different criteria for selecting companies for the Top 25 Companies Awards.

The companies that made it to the Top 25 Companies Awards list in 2019, in order of their performance ranking, are:

1. Fauji Fertilizer Company Limited

2. Nestle Pakistan Limited

3. Lucky Cement Limited

4. Habib Bank Limited

5. Archroma Pakistan Limited

6. Engro Fertilizers Limited

7. Security Papers Limited

8. Bank AL Habib Limited

9. United Bank Limited

10. Colgate – Palmolive (Pakistan) Limited

11. Mari Petroleum Company Limited

12. Attock Petroleum Limited

13. Dawood Hercules Corporation Limited

14. Pakistan Oilfields Limited

15. Bata Pakistan Limited

16. International Industries Limited

17. MCB Bank Limited

18. International Steels Limited

19. Millat Tractors Limited

20. Agriautos Industries Limited

21. Engro Corporation Limited

22. EFU General Insurance Limited

23. ZIL Limited

24. AGP Limited

25. Gadoon Textile Mills Limited

In the challenging economic environment faced by Pakistan in view of the coronavirus pandemic, the recognition of these companies by Pakistan Stock Exchange will not only bring them the attention of local and foreign investors, analysts and portfolio managers but will also cast a positive light on Pakistan’s business, economic and financial sectors, locally as well as globally.

KARACHI: The stock market ended down by 407 points on Monday owing to lower oil prices in international markets after lockdown fears on fast spread of coronavirus.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 43,334 points as against 43,741 points showing a decline of 407 points.

First day of the rollover week met the vengeance of international crude oil prices, which fell by more than 5 percent during the trading hours today (due to lock-down fears in the developed countries).

Scrips that are the subject of rollover largely performed well as against the main board.

E&P sector saw heavy selling pressure, followed by Bank and Cement sectors primarily due to profit booking as was observed on Friday when the Index virtually touched base with 44,000 level. Among scrips, WTL topped the volumes with 36.5 million shares, followed by TRG (35.1 million) and ICIBL (30.9 million).

Sectors contributing to the performance include E&P (-178ps), Banks (-92 points), Cement (-45 points), Fertilizer (-36 points) and Autos (-23 points).

Volumes increased from 482.6 million shares to 516.3 million shares (+7 percent DoD). Average traded value however, declined by 5 percent to reach US$ 139.7 million as against US$ 147.6 million.

Stocks that contributed significantly to the volumes include WTL, TRG, ICIBL, PRL and PAEL, which formed 28 percent of total volumes.

Stocks that contributed positively to the index include PAKT (+14 points), SRVI (+14 points), FFC (+9 points), TRG (+9 points) and KTML (+8 points). Stocks that contributed negatively include OGDC (-69 points), PPL (-60 points), HBL (-33 points), ENGRO (-32 points) and POL (-31 points).

KARACHI: The stock market likely to extend its bull run on the back of easing in political noise. Further, vaccine for coronavirus may also help in boosting investors’ sentiments.

Analysts at Arif Habib Limited said that the index is expected to continue extending its bull run on the back of diluting political noise.

 Moreover the approval of Moderna’s vaccine is expected any time soon which is another leap forward in the battle against COVID-19.

Healthy corporate earnings are expected during second quarter of the current fiscal year which should continue fueling the positive sentiments.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) index is currently trading at a PER of 7.4x (2021) compared to Asia Pac regional average of 14.1x and while offering DY of 6.1 percent versus 2.4 percent offered by the region.

The local bourse continued its bullish momentum this week, settling at 43,741 points (up 2.3 percent WoW). This week the index also crossed a 2.5-Yr high and thus now stands at the highest level during the present government’s tenure.

US FDA’s finding of Moderna’s vaccine as “highly effective” was a big step closer to the approval of another vaccine (after Pfizer/BioNTech’s vaccine) – a major boon for global investment sentiment. This week Pakistan paid its second installment of the USD 3 billion loan from Saudi Arabia, through commercial borrowing from China.

 Moreover, POL products’ prices were raised this week (up to 7.9 percent) on the back of recovery in global oil prices (Arab Light is up 19 percent MoM).

Sector-wise positive contributions came from i) Banks (342 points), ii) Fertilizers (231 points), and iii) Oil & Gas Exploration (202 points) while Power Generation & Distribution declined 37 points. Scrip-wise positive contributions were led by OGDC (112 points), FFC (95 points), MEBL (68 points), ENGRO (64 points), and PSO (63 points). HUBC and KOHC led the negative contributions, declining 43 and 15 points respectively.

Foreign selling continued this week clocking-in at USD 9.4 million compared to a net sell of USD 9.6 million last week. Selling was witnessed in Commercial Banks (USD 11.0 million) and Fertilizer (USD 1.4 million). On the domestic front, major buying was reported by Banks / DFIs (USD 7.1 million and Individuals (USD 5.1 million). Average volumes arrived at 549 million shares (up by 22 percent WoW) while average value traded settled at USD 154 million (up by 25 percent WoW).