Tag: PSX

KARACHI: The stock market likely to maintain positive trend during the next week after the surprise cut in policy rate and approval of $1.38 billion emergency loan by IMF.

Analysts at Arif Habib Limited said that the market to hover in the green zone next week as the cabinet has granted approval to an Ordinance providing incentives for the construction industry.

Whereas slow growth of Coronavirus cases in Pakistan may also fuel bullish sentiments.

On the other hand, we might see further appreciation in PKR against green as foreign selling in debt securities has largely been subdued, inclusion of Pakistan by G20 in its debt relief plan which might reduce debt repayment pressure, and disbursement of funds from the IMF which may aid foreign exchange reserves.

Trading commenced on a negative note this week as the OPEC+ announced a production cut that remained inefficient to offset the expected drop in demand amid COVID-19, which resulted in a decline in international oil prices.

On the other hand, the Sindh government announced a more severe lockdown on account of rising cases in the province which dampened investor’s sentiments.

However, sentiment reversed direction on the last trading day whereby steep gains were witnessed in the wake of i) 200bps cut in the benchmark rate to 9 percent by the State Bank in an emergency unscheduled meeting, ii) approval of a USD 1.4bn fund by the IMF for Pakistan, iii) sharp decline in 10-year PIB’s yield from 8.65 percent to 7.7 percent, and iv) 2 percent appreciation in the PKR against USD.

As a result, the benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 32,832 points, up by 799 points or 2.5 percent WoW.

Contribution to the upside was led by i) Fertilizer (405 points), ii) Cements (170 points), iii) Pharmaceuticals (127 points), iv) Textile Composite (59 points), and v) Automobile Assemblers (51 points). Scrip wise major gainers were DAWH (143 points), FFC (125 points), ENGRO (108 points), LUCK (80 points), and SEARL (43 points). Whereas, scrip wise major losers were NESTLE (97 points), UBL (56 points) HBL (55 points), BAFL (54 points) and BAHL (32 points).

Foreigners offloaded stocks worth of USD 14.24 million compared to a net sell of USD 16.22 million last week. Major selling was witnessed in Commercial Banks (USD 3.79 million) and Fertilizer (USD 3.03 million).

On the local front, buying was reported by Insurance Companies (USD 6.80 million) followed by Companies (USD 4.53 million).

That said, average daily volumes for the outgoing week were down by 4 percent to 178 million shares likewise value traded decreased by 10 percent to USD 37.8 million.

KARACHI: The share market gained 87 points on Thursday after trading in range bound during the day.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 31,330 points as against 31,242 points showing an increase of 87 points.

Analysts at Arif Habib Limited said that the market traded in a narrow range today between +205 points and -226 points, and closing the session +87 points.

Yesterday’s PIB auction that resulted in normalization of yield curve and declining of yields gave good reasons for investors to come back to equities.

However, weakening oil fundamentals kept the investors in limbo on whether to book profit or take new positions.

Similar to yesterday’s performance, Fertilizer sector maintained the momentum with further support from Cement and E&P sectors.

Banking sector, on the other hand, faced selling pressure, bearing the brunt from foreign investors in past couple of sessions.

Cement sector managed to post some recovery today and maintained top position in trading volumes with 34.6 million shares, followed by Chemical (12.9 million) and Vanaspati (10.9 million).

Among scrips, MLCF topped the volumes with 14.8 million shares, followed by UNITY (10.9 million) and HASCOL (7.2 million).

Sectors contributing to the performance include E&P (+39 points), Tobacco (+31 points), Pharma (+25 points), Inv Banks (+23 points), Power (+16 points), Banks (-57 points) and Insurance (-12 points).

Volumes declined from 185.6 million shares to 119.1 million shares (-36 percent DoD). Average traded value also declined by 36 percent to reach US$ 28.5 million as against US$ 44.8 million.

Stocks that contributed significantly to the volumes include MLCF, UNITY, HASCOL, EPCL and PIOC, which formed 36 percent of total volumes.

Stocks that contributed positively to the index include PAKT (+24 points), DAWH (24 points), OGDC (+18 points), FFC (+17 points) and COLG (+15 points). Stocks that contributed negatively include MCB (-23 points), HBL (-20 points), LUCK (-11 points), UBL (-11 points), and EFERT (-11 points).

KARACHI: The equity market fell by 19 points on Wednesday in mixed trading sessions during the day.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 31,242 points as against 31,223 points showing an increase of 19 points.

Analysts at Arif Habib Limited said that the market opened on a positive note today with 165 points, which was primarily the reaction to partial opening of various industries and sectors decided by the federal and provincial governments.

The index surged by 572 points, barring E&P and O&GMCs, during the session despite downward trend in international crude prices.

As WTI dropped by more than 4.5 percent to touch 18-year low (2002) of US$ 19.20/bbl, E&P and O&GMCs lost support from levels maintained in trades earlier in the session.

Cement Sector, which was the highlight of today and performed well during the session also saw profit booking by the end of session. Strong price performance was contributed by Fertilizer Sector.

Early on, the support for benchmark KSE-100 index came from index heavy weights, ENGRO, HUBC, LUCK, DAWH and FFC.

Secondary market PIB yields also dropped further to indicate optimism for a rate cut in the upcoming monetary policy. 10yr PIB was observed trading at 8.65 percent.

Cement sector continued leading the volumes with 61.9 million shares, followed by O&GMCs (15.6 million) and Chemical (14.2 million). Among scrips, MLCF realized 22.5 million shares, followed by HASCOL (10.9 million) and FCCL (9.5 million).

Sectors contributing to the performance include E&P (-107 points), Banks (-36 points), Food (-21 points), Inv Banks (+60 points), Cement (+41 points), Fertilizer (+26 points) and Pharma (+23 points).

Volumes increased from 130.4 million shares to 1856 million shares (+42 percent DoD) Average traded value also increased by 55 percent to reach US$ 44.8 million as against US$ 28.8 million.

Stocks that contributed significantly to the volumes include MLCF, HASCOL, FCCL, PIOC and DGKC, which formed 32 percent of total volumes.

Stocks that contributed positively to the index include DAWH (+59 points), LUCK (18 points), FFC (+14 points), ABOT (+12 points) and EPCL (+11 points). Stocks that contributed negatively include OGDC (-37 points), PPL (-35 points), POL (-29 points), NESTLE (-25 points), and BAFL (-16 points).

KARACHI: The equity market gained 190 points on Tuesday owing to improved sentiments of investors.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 31,223 points as against 31,033 points showing an increase of 190 points.

Analysts at Arif Habib Limited the market traded in the positive zone for most part of the session, despite international crude oil prices dipping below the pre-production cut levels.

The WTI saw declines of around 2.5 percent in international markets, which caused local investors to book profit on E&P and O&GMCs.

Similar activity was observed in Cement sector that saw MLCF and DGKC touching levels near lower circuits, but rebounded strongly by the closing of session.

Textile sector also benefited from positive investor sentiment. Major reason behind the positivity was Government’s consideration on following smart lockdown / partial opening up of businesses across the country that raised hopes among investors for return to normalcy.

Banking sector stocks largely stood ground with HBL, MCB and UBL trading range bound amidst low volumes. Cement sector posted trading volumes of 37.5 million shares, followed by O&GMCs (14.7 million) and Power (11.7 million).

Among scrips, MLCF topped the volumes with 11.4 million, followed by HASCOL (10.7 million) and PAEL (7.7 million).

Sectors contributing to the performance include Cement (+61 points), Banks (+47 points), Textile (+41 points), Pharma (+32 points), Auto (+22 points), Food (-36 points) and Power (-21 points).

Volumes dipped from 153.9 million shares to 130.4 million shares (-15 percent DoD) Average traded value also declined by 16 percent to reach US$ 28.8 million as against US$ 34.4 million.

Stocks that contributed significantly to the volumes include MLCF, HASCOL, PAEL, KEL and PIOC, which formed 34 percent of total volumes.

Stocks that contributed positively to the index include LUCK (+23 points), MTL (+19 points), NML (+16 points), NBP (+13 points) and SEARL (+12 points).

Stocks that contributed negatively include NESTLE (-35 points), HUBC (-22 points), HMB (-6 points), OGDC (-6 points), and SNGP (-6 points).

KARACHI: The stock market may be in positive zone during next week as the government prepares to ease off lockdown in the country, analysts at Arif Habib Limited said.

Moreover, loan disbursement from IMF of $1.4 billion next week will also relieve fiscal pressures and set in motion aggressive measures to counter any economic fallout amidst corona.

In addition, with the construction sector resuming operations from April 14, 2020, cement and steel are expected remain in limelight.

Whereas with global demand curtailment owing to corona exceeding oil output cut by various countries, we believe oil prices may remain range-bound.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 5.8x (2020) compared to Asia Pac regional average of 10.2x and while offering DY of ~8.7 percent versus ~3.1 percent offered by the region.

The KSE-100 index opened up on a positive note on Monday morning, given announcement of a construction package by PM Khan on the last day of the prior week. Albeit, momentum could not sustain and the sentiment quickly turned negative over expectations of economic slowdown by the Asian Development Bank and World Bank followed by increase in new COVID-19 cases (18 percent DoD on Monday).

Bulls returned the following day after crude oil prices went up in anticipation of agreement over significant cut in oil production by OPEC+ followed by possibility of an energy sukuk issuance.

Furthermore, FATF extended Pakistan’s deadline to meet targets till Sep’20, which kept the trajectory positive. The KSE-100 closed at 32,033 points, gaining 411 points (up by 1.3 percent) WoW.

Sector-wise positive contributions came from i) Oil & Gas Exploration Companies (132 points), ii) Cement (78 points), iii) Fertilizer (71 points), iv) Insurance (70 points) and Power Generation & Distribution (37 points).

Meanwhile, sector-wise negative contribution came from i) Automobile Parts & Accessories (20 points), Tobacco (13 points) and Textile Composite (13 points). Scrip-wise positive contributions were led by OGDC (127 points), BAFL (51 points), HUBC (49 points), FFC (42 points) and DGKC (40 points).

Foreign selling continued this week clocking-in at USD 16.2 million compared to a net sell of USD 36.1 million last week. Selling was witnessed in Commercial Banks (USD 5.9 million) and Cement (USD 2.1 million).

On the domestic front, major buying was reported by Individuals (USD 9.4 million) and Insurance Companies (USD 5.0 million). Average Volumes settled at 186 million shares (down by 18 percent WoW) while average value traded clocked-in at USD 42 million (down by 8 percent WoW).

KARACHI: The share market gained 196 points on Friday despite selling pressure in major scrips.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 32,033 points as against 31.837 points showing an increase of 196 points.

Analysts at Arif Habib Limited said that the market saw a drop of 460 points early in the session, which was largely a factor of the crash in oil prices overnight (WTI closing 7.5 percent down from its opening the other day).

Resultantly, oil & gas chain saw selling pressure / profit booking but close of session saw pertinent scrip prices inching up, though still closed red.

Cement sector continued displaying strength on Relief construction package, on the back of which, DGKC and LUCK remained prominent, although by end of session, MLCF also saw buying activity.

Among banking sector stocks, HBL maintained its levels for the past couple of sessions, whereas UBL showed price gains.

Prospects of opening the lockdown by the Provincial governments has so far played in the interest of Cement sector largely.

Cement sector maintained the leadership in trading volumes with 33.3 million shares, followed by O&GMCs (17.1 million) and Power (12.4 million). Among scrips, UNITY topped the chart with 28.7 million shares, followed by HASCOL (25.8 million) and PAEL (14.1 million).

Sectors contributing to the performance include E&P (-103 points), Banks (+105 points), Fertilizer (+51 points), Technology (+24 points), Cement (+22 points) and Pharma (+20 points).

Volumes declined from 216.5 million shares to 127.1 million shares (41 percent DoD). Average traded value also declined by 41 percent to reach US$ 30 million as against US$ 51 million.

Stocks that contributed significantly to the volumes include HASCOL, KEL, MLCF, DGKC and PAEL, which formed 36 percent of total volumes.

Stocks that contributed positively to the index include BAFL (+34 points), ENGRO (33 points), MCB (+19 points), SNGP (+19 points) and FFC (+18 points). Stocks that contributed negatively include OGDC (-37 points), PPL (-34 points), MARI (-17 points), POL (-15 points), and PAKT (-12 points).

KARACHI: The stock market witnessed increase of 866 points on Thursday on rise in international oil prices and reports of further cut in policy rate.

KARACHI: The share market fell by 260 points on Wednesday owing to selling pressure seen during the day.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 30,971 points as against 31,231 points showing a decline of 260 points.

Analysts at Arif Habib Limited said that overnight pressure on international crude prices bore impact on KSE100 as well. With OPEC+ meeting scheduled for tomorrow (PST 7:00 PM), followed by a G20 meeting on Friday, on the same subject, i.e. production cut and management of crude price, local E&P stocks didn’t fell as much as the fall was witnessed in crude prices.

Market traded uni-directional (negative) for the most part of the session with Oil & Gas chain trading red. On the other hand, cyclicals, which had positive sentiments yesterday on the back of partial resumption of activities (primarily in Punjab), today saw selling pressure.

Cement sector, as have been the case for the past several sessions, again topped the volumes with 42.1 million shares, followed by Vanaspati (28.8 million) and O&GMCs (28.4 million).

Among scrips, UNITY (got traction from issuance of SRO on withdrawal of additional custom duty) led the volumes with 28.8 million shares, followed by HASCOL (25.8 million) and PAEL (14.1 million).

Sectors contributing to the performance include Banks (-115 points), E&P (-45 points), Cement (-37 points), Tobacco (-36 points), Fertilizer (-21 points), Insurance (+23 points).

Volumes increased from 172.7 million shares to 181.0 million shares (+5 percent DoD). Average traded value, on the other hand, declined by 13 percent to reach US$ 35.1 million as against US$ 40.2 million.

Stocks that contributed significantly to the volumes include UNITY, HASCOL, PAEL, MLCF and PIOC, which formed 50 percent of total volumes.

Stocks that contributed positively to the index include MCB (+18 points), IGIHL (9 points), KOHC (+9 points), KAPCO (+8 points) and OGDC (+7 points). Stocks that contributed negatively include PAKT (-36 points), LUCK (-32 points), BAFL (-29 points), BAHL (-28 points), and POL (-23 points).