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Tag: PSX

  • Stock market gains 817 points on reports of downward revision in tax target

    Stock market gains 817 points on reports of downward revision in tax target

    KARACHI: The stock market continued to make recovery on Wednesday and gained 817 points on Wednesday owing to reports of IMF affirmation to revise tax collection target downwards.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,531 points as against 39,714 points showing a gain of 817 points.

    Analysts at Topline Securities said that the market continued its momentum as the index increased by 2 percent during the course of the day to close at 40,531-level.

    This rally in market was largely attributed to news of ongoing negotiation between Federal Board of Revenue (FBR) and International Monetary Fund (IMF) to revise down revenue target.

    Earlier news flows suggested that IMF had agreed to lower revenue collection target to around Rs4.9 trillion (against a previous target of Rs5.2 trillion). The FBR has proposed the target of Rs4.7 trillion, the analysts said.

    Traded volume and value increased by 12 percent and 25 percent on DoD basis to 180 million shares and Rs.7.5 billion respectively.

    HASCOL was the volume leader for the second consecutive day, as 16mn shares of the OMC changed hands.

    MEBL declared its 4Q2020 result announcement in which it posted consolidated EPS of Rs.3.68, along with a final cash dividend of Rs.2/share.

    This result announcement was in line with expectation. CHCC in cement sector declared its 2QFY20 result announcement in which it posted LPS of Rs.1.14, this result announcement was better than the street estimate.

    Following the result announcement investor interest was witnessed in the cement company, closing 3.30 percent higher.

  • Finance ministry urges careful media reporting over ebb

    Finance ministry urges careful media reporting over ebb

    ISLAMABAD: The ministry of finance on Tuesday urged the media for careful reporting over the ebb and flows of Pakistan Stock Exchange (PSX).

    “Yesterday as being unfortunate as such reports highlighting sharp volatility in the market damage the interest of the small investors and create uncertainty in the market,” a statement said.

    “The role of the media in reporting the ebb and flow in the market needs to be carefully analyzed particularly in the wake of rumors spread by a section of the media regarding alleged changes in the government’s economic team which sent wrong signal to the market and damaged the interest of small investors and hurt overall sentiment in the market,” says it added.

    The Ministry of Finance has noted that it is natural for the market to see a correction after rising sharply by over 50 percent.

    “Yesterday, the market fell 846 points. Today the market gained 417 points. These ebbs and flows of the market are driven by sentiments, whereas the fundamentals remain strong and continue to improve.”

    The Ministry of Finance also pointed out that after rising by 50 percent from August 2019 to January 2020, the KSE 100 index had already been named as the top performing market in the world by Bloomberg in December 2019.

    The improved investor confidence was based on corrective measures taken by the government to reduce the twin deficits.

    These measures were also strongly endorsed by Moody’s Investor Services in December 2019 with an upgrade in outlook to ‘stable’ from ‘negative’.

    Foreign portfolio investment in the stock market during the first 6 months of the current fiscal year has also stood at US$ 18.8 million after 4 years of heavy selling by foreign investors.

  • Stock market recovers 418 points

    Stock market recovers 418 points

    KARACHI: The stock market gained 418 points on Tuesday as market made recovery of past days losses.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 39,714 points as against 39,296 points showing a make of 418 points.

    Analysts at Topline Securities said that the market opened on a positive note in line with regional and international markets, but lost momentum and traded sideways for most part of the day.

    However, in eleventh hour aggressive buying was observed by investors, as index gained to close at 39,714 level (up by 1.05 percent).

    Late buying was witnessed in the cement sector, as MLCF and PIOC from the sector gained to close on their respective upper circuits.

    Investor participation continue to be limited, as traded volume and value for the day stood at 161 million shares and Rs.6 billion respectively.

    HASCOL which was today`s volume leader with 12.8 million shares gained to close on its upper circuit.

  • NCCPL directs verification of stock investors through biometric

    NCCPL directs verification of stock investors through biometric

    KARACHI: National Clearing Company of Pakistan Limited (NCCPL) has issued guidelines to register / verify all investors of stock market through biometric system.

    The NCCPL on Monday issued communication to Pakistan Stock Exchange (PSX) to direct all authorized intermediaries (AI) and clearing members to register existing customers in Centralized Know Your Customer (CKO).

    The NCCPL said that in pursuance of provisions stipulated under clause 9.1 (x) of CKO Regulations 2017 and NCCPL Regulations clause 5.11, Authorized Intermediaries (AI) are required to register their existing Customers, in the KYC Database to obtain Unique KYC Number (UKN) and tagging of such UKNs with the relevant Authorized Intermediary within the time period notified by the CKO.

    In view of above, all Authorized Intermediaries are hereby notified to register their existing Customers (i.e existing customers registered through NCSS UIN database before June 17, 2019) in the KYC Database and obtain UKN latest by May 31 2020.

    Further, Clearing Members still not yet admitted as AI shall be required to get them registered as AI and also required to register their customers in CKO by May 31, 2020.

    For the purpose of facilitating the Authorized Intermediaries, step wise key elements of the existing Customer registration process under CKO have been briefly explained below;

    1. AI shall be required to carry out Biometric Verification of the Customer (Applicable on individual customer only).

    2. AI is required to submit online KYC form of the existing customer via KYC Information System. Moreover, hard copy of KYC Form as prescribed under Annexure II, III and IV of the CKO Regulations, 2017 in signed form shall be required for all Types of Customers.

    3. In case of joint account holder(s), the AI shall be required to carry out Biometric Verification and proceed with KYC Application Form for each account holder separately.

    4. After submission of KYC Application Form electronically in KIS, AI will be required to submit hard copy of original KYC Application Form and Supporting Documents to CKO within 5 working days as per existing practice. The supporting documents may also be submitted through the upload functionality made available in the KIS.

    5. CKO will initiate necessary processing and complete its verification within 10 working days from the date of receipt of KYC Application Form along with all the required supporting documents.

    6. Upon such verification, CKO will approve KYC Application Form in KIS and Unique KYC Number (UKN) will automatically be generated for such Customer in KIS.

    7. After issuance of UKN, CKO will obtain confirmation from corporate Customer, foreign individuals and foreign corporate Customers for the issuance of UKN within 15 working days in accordance with the Regulations.

    8. In case of any discrepancy found in KYC form, AI will be required to remove it within 10 working days.

    9. Customers registered with multiple AIs will be required to complete their KYC process with all AIs one by one. If their KYC process is not completed with the AI through whom the process was first initiated, such customers shall not be allowed to initiate their KYC process with the other AIs.

    The NCCPL warned that failure to comply the above mentioned clause within stipulated time shall lead to necessary action in accordance with clause 9.1 (v) of CKO Regulations, 2017 and clause 5.11 of NCCPL Regulations whereby UIN tagging of the Customer with such Authorized Intermediary/Clearing Member shall be blocked and trading through such client code shall be restricted.

    However, pending transactions of such customers will be settled through respective Securities Broker in NCSS. Moreover, squaring-up of open positions in all Markets including Leveraged Markets and selling of Securities held in the sub-account(s) will be allowed.

    For complete details please refer clause 5.11 of NCCPL Regulations and clause 9.1 of CKO Regulations, 2017.

    For any further queries or concerns, please feel free to contact the Customer Support Services of your respective locations.

  • Market to remain in red on rate cut pessimism

    Market to remain in red on rate cut pessimism

    KARACHI: The equity market likely to stay in red due to pessimism on high inflation, which created impressions the rate may not be cut in near future.

    Analysts at Arif Habib Limited forecast that the market to remain in the red following pessimism created from high inflation readings which have led to apprehensions over the rate cut which may not materialize soon.

    Moreover, shortfall in tax revenue targets (PKR 750bn shortfall expected for FY20) have added to concerns over the fiscal deficit recovery as well as possibility of more tax revenue measures.

    The KSE-100 index is currently trading at a PER of 7.0x (2020) compared to Asia Pac regional average of 12.2x and while offering DY of around 6.8 percent versus around 2.8 percent offered by the region.

    Correction phase seems to have set in, with the benchmark KSE-100 Index of Pakistan Stock Exchange (PSX) trading in the red another week. Aggravated inflationary pressure (14.6 percent YoY for Jan’20 – 10-Yr high) and turmoil in global markets following the outbreak of the Corona Virus have been the primary reasons behind the continuation of the selling spree in the local bourse.

    Further stress was created in the market from the rise in bond yields following the latest PIB auction in which the 3-Yr Bond cut-off yield increased by 30 bps to 12.05 percent, 5-Yr Bond yield increased by 21 bps to settle at 11.4 percent and the 10-Yr bond yield increased by 10 bps to 11 percent.

    The KSE-100 Index closed at 40,144 points (down 1,487 points WoW).

    Sector-wise negative contributions came from i) Oil & Gas Exploration Companies (-376ts), ii) Commercial Banks (-241 points), iii) Oil & Gas Marketing Companies (-150 points), iv) Fertilizer (-140 points), and v) Cement (-125 points). Scrip-wise negative contributions were led by PPL (-158 points), OGDC (-125 points), HBL (-104 points), PSO (-74 points) and DAWH (-57 points).

    Foreign selling this week clocked-in at USD 14.2 million compared to a net buy of USD 8.0 million last week. Selling was witnessed in Cement (USD 7.0 million) and Exploration & Production (USD 5.1 million).

    On the domestic front, major buying was reported by Insurance Companies (USD 13.7 million) and Individuals (USD 7.7 million). Average Volumes settled at 168 million shares (down by 11 percent WoW) while average value traded clocked-in at USD 45 million (down by 1 percent WoW).

  • Equity market ends down by 160 pts on selling pressure

    Equity market ends down by 160 pts on selling pressure

    KARACHI: The equity market fell by 160 points on Thursday owing to selling pressure was seen during the day. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,724 points as against 40,884 points showing a decline of 160 points.

    Analysts at Arif Habib Limited said that the market opened on a positive note and went up by 278 points during the session, which was mainly contributed by Oil and Gas sector scrips, E&P and OMCs.

    International crude prices prompted investors to build positions in oil and gas chain, however, selling pressure brought prices down and index moved downwards by 200 points.

    Chemical sector, on the other hand, performed well on the bourse, with LOTCHEM hitting upper circuit earlier in the session (on the back of better product margins) and maintained that position throughout.

    Similarly, EPCL, DOL and other chemical sector stocks gained traction from renewed interest by investors. Chemical sector led the volumes table with 18.5 million shares followed by Banks (17.8 million) and Cement (17 million).

    Among scrips, HASCOL led the volumes with 11.2 million, followed by LOTCHEM (8.9 million) and BOP (8.3 million).

    Sectors contributing to the performance include Power (-65 points), E&P (-42 points), O&GMCs (-40 points) and Inv Banks (-13 points) and Cement (-6 points).

    Volumes declined from 146.2 million shares to 127.8 million shares (-13 percent DoD). Average traded value also declined by 4 percent to reach US$ 38.0 million as against US$ 39.6 million.

    Stocks that contributed significantly to the volumes include HASCOL, LOTCHEM, BOP, UNITY and MLCF, which formed 32 percent of total volumes.

    Stocks that contributed positively include HBL (+43 points), BAFL (+16 points), POL (+14 points), PAKT (+11 points) and SYS (+11 points). Stocks that contributed negatively include HUBC (-61 points), MCB (-38 points), OGDC (-30 points), PPL (-24 points), and PSO (-22 points).

  • Stock market stages recovery of 475 points

    Stock market stages recovery of 475 points

    KARACHI: The stock market made recovery of 475 points on Tuesday as stocks of banking sector registered gain during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,884 points as against 40,409 points showing an increase of 475 points.

    Analysts said that the market staged a recovery after a major draw down of 1222 points yesterday and largely remained positive throughout the session barring -60 points earlier in the session.

    Overall, the Index moved up by 544 points and closed the session at +475 points.

    Banking sector played an important role in market recovery MCB’s result announcement further helped the other banking sector stocks to post gains.

    Resultantly, Banking sector posted trading volumes of 27.1 million shares, followed by Cement (21.7 million) and O&GMCs (19.9 million).

    Among scrips, BOP topped the charts with 16.4 million shares, followed by HASCOL (15.7 million) and UNITY (8.3 million).

    Sectors contributing to the performance include Banks (+217 points), Power (+83 points), Fertilizer (+62 points), Cement (+44 points) and O&GMCs (+33 points).

    Volumes declined from 203.3 million shares to 146.1 million shares (-28 percent DOD). Average traded value also declined by 33 percent to reach US$ 39.7 million as against US$ 59.2 million.

    Stocks that contributed significantly to the volumes include BOP, HASCOL, UNITY, KEL and DGKC, which formed 38 percent of total volumes.

    Stocks that contributed positively include MCB (+84 points), HUBC (+67 points), ENGRO (+47 points), UBL (+44 points) and BAHL (+30 points). Stocks that contributed negatively include PAKT (-27 points), PPL (-17 points), HBL (-8 points), JLICL (-5 points), and INDU (-3 points).

  • Stock market plunges by 1222 points due to high inflation

    Stock market plunges by 1222 points due to high inflation

    KARACHI: The stock market plunged by 1222 points or three percent on Monday owing to higher than expected inflation numbers.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,409 points as against 41,631 points showing a decline of 1222 points.

    Analysts at Arif Habib Limited said that the market saw a significant drawdown of around 1400 points during the session and closed negative 1222 points.

    Over the weekend, worse than anticipated Inflation caused concern amongst investors, which were otherwise anticipating a rate cut just last week, before the announcement of monetary policy.

    However, the prospects of a rate cut got dampened by the latest release of inflation statistics.

    Declining international crude prices added to the woes of investors and significant dip in oil stocks was also observed. Banking sector stocks realized trading volumes of 40.7 million shares, followed by Cement (27.4 million) and Technology (26.4 million).

    Among scrips, BOP led the trading volumes with 23.5 million shares followed by HASCOL (12.7 million) and MLCF (11.9 million).

    Sectors contributing to the performance include Banks (-320 points), E&P (-271 points), Fertilizer (-137 points), Cement (-98 points) and O&GMCs (-71 points).

    Volumes increased from 193.9 million shares to 203.1 million shares (+5 percent DoD). Average traded value also increased by 15 percent to reach US$ 59.1 million as against US$ 51.2 million.

    Stocks that contributed significantly to the volumes include BOP, HASCOL, MLCF, UNITY and WTL, which formed 31 percent of total volumes.

    Stocks that contributed positively include SYS (+12 points), DCR (+1 points), and ATLH (+0 points). Stocks that contributed negatively include PPL (-111 points), HBL (-97 points), ENGRO (-91 points), OGDC (-82 points), and MCB (-74 points).

  • Weekly Review: Market likely range bound on IMF talks

    Weekly Review: Market likely range bound on IMF talks

    KARACHI: The trading activities at the Pakistan Stock Exchange (PSX) likely range bound during the next week over talks between IMF and the Pakistan authorities for release of third tranche.

    Analysts at Arif Habib Limited said that the market appears range bound in the mid-term with IMF commencing talks with the Pakistani team next week over release of its third tranche under the $6 billion EFF.

    Moreover, local investors await final verdict of the FATF next month whereby decision over Pakistan’s status (White, Grey or Black) will be taken.

    With that said, long term prospects appear upbeat given improvement in the external account and stable PKR-USD parity.

    The benchmark KSE-100 index of the PSX is currently trading at a PER of 7.2x (2020) compared to Asia Pac regional average of 11.9x and while offering DY of ~6.6 percent versus ~2.8 percent offered by the region.

    With fear of contagion of the Chinese Corona virus across the world, global equities staged a slide with the local equity bourse following suit.

    This was primarily marked by lower crude prices at the beginning of the week, which kept the index-heavy E&P stocks under pressure. In addition, the SBP kept its benchmark policy rate unchanged in the latest monetary policy statement which triggered select Cement and Steel (leveraged) scrips to tumble during mid-week.

    Finally, concerns over rising inflationary readings and political pressure has also kept the index dull. The KSE-100 Index closed at 41,631 points (down by 1,002 points; 2.4 percent WoW).

    Sector-wise negative contributions came from i) Commercial Banks (-431ts), ii) Oil & Gas Exploration Companies (-303 points), iii) Power Generation & Distribution (-113 points), iv) Cement (-66 points), and v) Fertilizer (-41 points). Scrip-wise negative contributions were led by MCB (-126 points), PLL (-108 points), UBL (-97 points), HBL (-96 points) and HUBC (-95 points).

    Foreign selling this week clocking-in at USD 8.0 million compared to a net buy of USD 4.8 million last week. Selling was witnessed in Cement (USD 4.2 million) and Textile composite (USD 1.3 million).

    On the domestic front, major buying was reported by Individuals (USD 9.8 million) and Broker Proprietary Trading (USD 2.0 million). Average Volumes settled at 188 million shares (down by 1 percent WoW) while average value traded clocked-in at USD 46 million (down by 7 percent WoW).

  • Stock market ends down by 273 points on selling pressure in energy scrips

    Stock market ends down by 273 points on selling pressure in energy scrips

    KARACHI: The stock market fell by 273 points on Friday as selling pressure seen in energy scrips. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 41,631 points as against 41,904 points showing a decline of 273 points.

    Analysts at Arif Habib Limited said that the market traded in a range today between +234 points and -345 points and closed the session -273 points.

    Despite slight recovery in international crude oil prices, Oil & gas chain remained subdued with E&P stocks declining further by approximately 2 percent on average. Similarly, PSO showed selling pressure.

    Fertilizer Companies, EFERT and FFC are said to announce a cut in Price of Urea by Rs150/bag and Rs. 300/bag respectively and caused selling in Fertilizer scrips.

    Technology sector posted 33.3 million trading volume, followed by O&GMCs (27.6 million) and Vanaspati (24 million). Among scrips, UNITY led the table with 24 million shares, followed by HASCOL (23.5 million) and TRG (12.4 million).

    Sectors contributing to the performance include Banks (-120 points), E&P (-100 points), Cement (-46 points), Tobacco (+32 points) and Technology (+13 points).

    Volumes increased from 162.3 million shares to 193.4 million shares (+19 percent DoD). Average traded value also increased by 15 percent to reach US$ 51 million as against 44.3 million.

    Stocks that contributed significantly to the volumes include UNITY, HASCOL, TRG, AVN and BOP, which formed 42 percent of total volumes.

    Stocks that contributed positively include PAKT (+28 points), HASCOL (+12 points), SYS (+12 points), MUREB (+10 points) and ISL (+5 points). Stocks that contributed negatively include PPL (-38 points), UBL (-31 points), LUCK (-30 points), OGDC (-28 points), and HBL (-27 points).