KARACHI: Shares at Pakistan Stock Exchange (PSX) witnessed a decline of 258 points on Tuesday amid hefty volumes. The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 45,072 points as against the previous day’s closing of 45,330 points.
Analysts at Arif Habib Limited said that on the MSCI rebalancing day, the KSE-100 index witnessed a volatile session as it made a dicey move of more than 1,000 points, making a close above 45,000 points benchmark.
The E&P sector stayed in the limelight as the government is considering a scheme to reduce the stock of the circular debt by declaring dividends for the shareholders of energy sector companies.
In the last two trading hours, Institutional investors accumulated across the board as it was the last opportunity to catch foreign selling spree due to the transition from emerging to frontier market. Mainboard stocks witnessed hefty volumes today.
Sectors contributing to the performance include Commercial Banks (-160 points), Fertilizer (-78 points), Inv. Banks (-18.3 points), FMCG (-16.2 points) and Textile Composite (-12.8 points).
Volumes increased from 268.2 million shares to 411.5 million shares (+53.4 per cent DoD). Traded value increased by 219.4 per cent to reach US$ 198.2 million as against US$ 52.0 million.
Stocks that contributed significantly to the volumes include HBL, FNEL, UBL, TRG and MCB.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 45,330 points as against last Friday’s closing of 44,114 points, showing an increase of 1,216 points or 2.8 per cent.
Analysts at Arif Habib Limited said that the KSE-100 index witnessed a bull-run as it gained more than 1,200 points in intraday trading to cross 45,000 points today, lifted by the cabinet approval to revive Saudi Arabia’s $3 billion support package for Pakistan in safe deposits and $1.2 billion worth of oil supplies on deferred payments.
A major dip in crude oil prices created positive momentum in the market despite the emergence of a new variant of Covid-19.
The perception of investors towards the last leg of the foreign selling spree being completed last week created an opportunity for intra-day traders.
Sectors contributing to the performance include Commercial Banks (+283 points), Cement (+211 points), E7P (+139 points), Fertilizer (+100 points) and OMC’s (+76 points).
Volumes decreased from 289.8 million shares to 268.2 million shares (-7.5 per cent DoD). Traded value increased by 6.1 per cent to reach US$ 61.9 million as against US$ 58.3 million.
Stocks that contributed significantly to the volumes include FFLR1, TPLP, WTL, BYCO and FNEL.
KARACHI: The stock market is likely to stay positive during next week owing to the expected transfer of $3 billion from Saudi Arabia.
Analysts at Arif Habib Limited said that the market to show positivity in the upcoming week is attributable to support from Saudi Arabia in terms of safe deposits of $3 billion in the upcoming week which will release pressure off of foreign exchange reserves, the slowdown in international oil prices which will alleviate inflationary pressure, and end of roll-over week.
However, the last date of MSCI rebalancing on November 30, 2021 might trigger foreign selling, current macro-economic concerns like rising imports, higher inflationary reading due to increasing prices of commodities, and pressure on currency could keep the market range-bound.
The benchmark KSE-100 Index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 4.5x (2021) compared to Asia Pac regional average of 15.0x while offering a dividend yield of 8.5 per cent versus 2.2 per cent offered by the region.
This week trading activity remained chaotic and gloomy with 2,375 points (5.11 per cent WoW; Highest weekly decline after 27th Mar’20) being eroded from the KSE-100 index which closed at 44,114 points this week.
The decline is attributable to i) State Bank of Pakistan increasing policy rate by 150 basis points to 8.75 per cent, ii) alarming current account deficit which increased to USD 5.1 billion in 4MFY21, iii) beginning of the roll-over week, iv) net selling from foreigners amid a transition from Emerging Market to the Frontier Market and v) decline in foreign exchange reserves putting pressure on PKR parity. Moreover, the announcement of a staff-level agreement with IMF failed to rejuvenate investors’ sentiments. Albeit, the index rebounded amid i) end of petroleum dealers strike post agreement with the government to increase margins, ii) news of Saudi inflow of USD 3bn expected next week, and iii) nosedive in international oil prices which might be a breather for the economy.
Contribution to the downside was led by i) Cements (462 points), ii) Commercial Banks (326 points), iii) Technology and Communication (290 points), iv) Fertilizer (270 points), and v) Oil & Gas Exploration (252 points). Scrip-wise major losers were LUCK (205 points), TRG (177 points), HBL (114 points), PPL (98 points), and ENGRO (95 points).
Foreigners offloaded stocks worth of USD 39.1 million compared to a net sell of USD 25.0 million last week. Major selling was witnessed in Commercial Banks (USD 15.7 million) and Fertilizer (USD 6.3 million). On the local front, buying was reported by Individuals (USD 16.0 million) followed by Companies (USD 13.3 million). That said, average daily volumes and traded value for the outgoing week were up by 8 per cent and 13 per cent to 264 million shares and USD 60 million, respectively.
KARACHI: Bulls return to the stock market which gained 178 points on Friday ending a 4-day losing streak. The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 44,114 points against 43,936 points showing an increase of 178.4 points.
Analysts at Arif Habib Limited said that the battle between bulls and bears was conquered by the bulls in the last trading hour.
The market opened with positive momentum as investors perceived that the last leg of the foreign selling spree was completed on the last trading day.
The forecast of investors failed as foreign selling continued and led the market back to red territory.
Activity continued to remain side-ways as the market witnessed hefty volumes in the 3rd tier stocks.
On the flip-side, In the second session, institutional buyers started fetching value stocks due to attractive multiples which led the market to close in the green zone.
Sectors contributing to the performance include Commercial Banks (+74 points), Power (+53 points), Fertilizer (+48 points), Cement (+34 points), and Pharmaceuticals (+15 points).
Volumes increased from 195.2 million shares to 289.8 million shares (+48.5 per cent DoD). Traded value also increased by 22.4 per cent to reach US$ 58.5 million as against US$ 47.8 million.
Stocks that contributed significantly to the volumes include WTL, TPLP, BYCO, HUMNL and MODAMR.
Analysts at Arif Habib Limited said that bears ruled over the bulls for the fourth consecutive session in a week due to concerns over the devaluation of the Pak rupee and the last leg of foreign selling spree.
Roll-over week continued to remain under pressure despite attractive valuations in terms of low P/E multiples and high dividend yields.
Technology stocks remained in the limelight throughout the day as traders placed the bet on high-beta stocks to mark quick trading gains. On the flip-side, Institutional investors fetched for value hunting in the last trading hour.
Sectors contributing to the performance include Commercial Banks (-140 points), Power (-59 points), Fertilizer (-50 points), Cement (-48 points) and Pharmaceuticals (-432 points).
Volumes decreased from 310.4 million shares to 195.2 million shares (-37.1 per cent DoD). Traded value also decreased by 35.2 per cent to reach US$ 48.0 million as against US$ 74.0 million.
Stocks that contributed significantly to the volumes include TPLP, BYCO, HUBC, WTL and TRG.
KARACHI: Pakistan Stock Exchange (PSX) on Thursday announced a temporary change in duration for closing price determination and market timings.
The PSX said that in the context of the reclassification of Pakistan from MSCI Emerging Market Index to MSCI Frontier Market Index, all Market Participants are hereby informed that the following temporary changes in ‘Market Timings’ and ‘Closing Price Determination’ shall be implemented for the period mentioned hereunder:
1. CHANGE IN DURATION FOR CLOSING PRICE DETERMINATION:
The ‘Closing Price’ of Securities shall be determined over the last 120 minutes of the regular market session on the basis of Volume Weighted Average Price (VWAP) as against the current practice of last 30 minutes.
2. CHANGE IN MARKET TIMINGS:
Revised timing for Post Close Session, Trade Rectification/Modification session and Negotiated Deals Market shall be as under:
Market State:
Monday to Thursday
Post Close Session: 16:00 to 16:30
Trade Rectification / Modification: 16:30 to 18:15
Negotiated Deals Market (NDM): 09:15 to 18:15
Friday
Post Close Session: First session – Second Session 17:00 to 17:30
Trade Rectification / Modification: first Session – Second Session 17:30 to 18:45
Negotiated Deals Market (NDM): First Session 09:15 to 12:00 Second Session 14:30 to 18:45
The above changes shall remain effective from Friday, November 26th 2021 till Friday, December 3rd 2021. The timings shall be reverted back to the existing DTS w.e.f. Monday, December 6th 2021, the PSX said.
The index closed at 44,364 points from the previous day’s closing of 44,948 points.
Analysts at Arif Habib Limited said that bears continued to dominate over the bulls for the straight three consecutive sessions in a week as investors feared the upcoming mini-budget.
Moreover, The International Monetary Fund (IMF) has rejected Pakistan’s request to keep a door open for borrowing from the central bank and also did not agree on any meaningful accountability of the State Bank of Pakistan (SBP).
The third day of the roll-over week remained under pressure despite attractive valuations. Across the board, selling was witnessed.
On the institutional front, a cautious stance was recorded due to the concerns of foreign selling spree in the upcoming MSCI re-balancing day.
Sectors contributing to the performance include Banks (-159.0 points), Fertilizers (-123.8 points), Cements (-117.8 points), and Pharmaceuticals (-48.7 points).
Volumes increased from 264.6 million shares to 310.3 million shares (+17.3 per cent DoD). Average traded value also increased by 33.0 per cent to reach US$ 74.0 million as against US$ 55.6 million.
Stocks that contributed significantly to the volumes include TRG, WTL, TPLP, TELE and BYCO.
The KSE-100 index closed at 44,949 points as against the previous day’s closing of 45,745 points, showing a decrease of 796 points.
Analysts at Arif Habib Limited said that today again, Bears ruled over the bulls as investors were unable to digest the hawkish stance of the last Monetary Policy Committee (MPC) which resulted in double-digit six-month KIBOR.
A hefty increase in the finance cost of leveraged businesses will eventually lower profits as a major portion of borrowing appears from KIBOR-led lending.
The second day of roll-over week became under pressure as investors took a cautious side and opted for squaring of roll-over positions. In the last trading hour, a bloodbath session was witnessed as selling came across the board.
Sectors contributing to the performance include Technology (-178 points), Cement (-145 points), Commercial Banks (-94 points), E&P (-64 points) and OMC’s (-44 points).
Volumes increased from 261.9 million shares to 264.6 million shares (-1.0 per cent DoD). The traded value decreased by 11.1 per cent to reach US$ 55.8 million as against US$ 62.8 million.
Stocks that contributed significantly to the volumes include TRG, WTL, BYCO, GTECH and HASCOL.
Analysts at Arif Habib Limited said that bears ruled over the bulls today as investors were unable to digest the higher than expected interest rate increase.
The beginning of roll-over week witnessed bearish momentum despite the long-awaited news of Pakistan and the International Monetary Fund (IMF) having reached a staff-level agreement.
Firstly, only cyclical stocks came under the radar and investors started off-loading positions.
Later on, a bloodbath session was witnessed as selling came across the board. On the institutional front, a cautious stance was noted due to the concerns of foreign selling spree.
Sectors contributing to the performance include Cement (-184 points), Technology (-153 points), E&P (-90 points), Ferilizer (-70 points) and Textile Composite (-36 points).
Volumes decreased from 304.2 million shares to 261.9 million shares (-13.9 per cent DoD). Traded value also decreased by 8.8 per cent to reach US$ 62.6 million as against US$ 68.6 million.
Stocks that contributed significantly to the volumes include TRG, BYCO, TPLP, TREET and GTECH.
KARACHI: The stock market is likely to react to a hike in the policy rate during next week. The State Bank of Pakistan (SBP) increased the key policy rate by 150 basis points to 8.75 per cent.
