Home / This Week / Market / Stock Watch

Stock Watch

PANIC SELLING PUSHES INDEX TO PLUNGE 1.1PC
SUMMARY

A series of terrorist attacks last week in cities of Punjab, Khyber Pakhtunkhwa and Sindh created panic for investors. On Monday, a suicide blast in Lahore on protesting chemists left 13 people dead and 70 others wounded. On Wednesday, four suicide bombers blew themselves up in one after another at different spots in Peshawar. On Thursday a suspected woman suicide attacker set off explosive at the shrine of Lal Shahbaz Qalander, leaving around 76 devotees dead and 250 injured.

The attacks created a panic situation for investors who were cautious and the average volume in the week declined to 353.912 from 414.15 last week. The market capital too declined to Rs9.798 trillion from Rs9.881 trillion last week.

The market opened on strong positive note with the Index reached an intraday high of 50,322.55. The Index could not hold the level and succumbed to selling pressure to close 49,965.63 gaining 40.55 points. The steel sector was worst hit by closing lower or ended in deep red on the news on anti-dumping duty on steel imports. The positive expectation of Engro result announcement and SNGP boosted the market. The volume improved to 362.407 million shares.

KSE-100 ends 0.4 percent lower as terrorist attack cause panic among investors on Tuesday. The Index declined 197.72 points to close 49,767.91. Further reduction in the number of margin eligible securities acceptable as collateral from Wednesday has also pushed leveraged investors to trim their position. Volume declined to 353.066.

The panic selling continued on Wednesday due to attack along with the resumption of ongoing Panama case hearing. The KSE-100 Index plunged 553.76 points to close at 49,214.15. The banking sector led the decline. HBL fell 1.37pc, MCB 1.13pc and UBL 0.89pc.

The stocks rebounded on Thursday as it gained 374.15 points to close at 49,588.30. Again this gain was led by banking sector with UBL rising 2.4pc, Habib Bank 0.88pc and MC 1.10pc. It was assumed that foreign buyer to the tune of $3.33m boosted the investor sentiment. However, overall declined to 164.36 million.

Security concerns kept investors on edge during Friday’s session. The Index lost ground with the latest attack on a Sufi shrine . The benchmark KSE-100 Index lost 212.59 to close at 49,375.71. The result by UBL. And OGDC were in line with expectations but Engro lower than expected dividend surfaced.

PARTICIPANTS/ACTIVITY

On average shares of 417 companies were traded. Of these 179 were gainers and 224 were losers and 14 remained unchanged.

Foreigners were net buyer by $4.25m during the week; companies were net buyers $1.01m, banks were seller $4.57m; Mutual fund net buyer $7.32m and individuals net seller $6.6m.

Volume leaders during the week were: Aisha Steels Mills 132m; Power Cement 119m; K-Electric 118m; Dost Steels 95m; TRG Pakistan 62m; Media Times Ltd 19m; Bank of Punjab 16m and Dewan Cement 13m.

TRIGGERS

– Fiscal deficit hits four-year high of 2.4pc
– HBL earnings drop 2.5pc to Rs34.2 billion.
– ECC approves another Rs30 billion loan for power sector.
– Modaraba sector’s assets grow 11pc.
– Foreigners were net buyer with $4.25m.
– Release of Rs2 billion fertilizer subsidy.
– PSO to get Rs20 billion as default looms.

FUTURE OUTLOOK

The volatility in the market to continue with cautious approach required.

RAEES UDDIN KHAN – Research & Development Institute of Securities Management & Research Karachi

Check Also

World Stock Markets updates

World Stock Markets

US stocks slip as Turkey crisis drags bank shares US stocks slid on Friday as …

Leave a Reply