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BEARISH TREND CONTINUES AS KSE-100 INDEX DROPS 1.5PC WOW
SUMMARY

The KSE-100 index during this week came down to 40,248.4 on Friday while it was 40,844.40 last week. There was a total loss of 596 points in KSE-100 Index. The average volume during the week was 112 million while market capitalization declined to Rs.73 billion to close on Friday at Rs.8,356 trillion. On average 343 companies traded in which 157 gained while 170 were in losses and 16 remained unchanged.

During the week the fundamentals, which had impact on stock exchange included the continuing sit-in by religious parties in Islamabad; inauguration of the second LNG terminal by Prime Minister Shahid Khaqan Abbasi at Port Qasim, which was built at a cost of Rs50 billion; bank rate expectation on incoming Monetary Policy; positive comments by Sindh Governor on the recent Shanghai Electric and K-Electric merger and acquisition deal; Finance Minister Ishaq Dar being granted indefinite medical leave, causing doubts over the continuity of macro economic policies.

On Monday, PSX witness a bearish trend as government failed to convince religious parties during the week-end to call of their sit-in. The on-going political battle kept the investors on sidelines with low participation volume of 94 million shares . The Index took a deep dip of 527.47 points to close the day at 40,316.93.

There was a surge of 231.90 points on Tuesday as oil and gas companies drove stocks upward. Higher international oil prices and inauguration of the second liquefied natural gas (LNG) terminal at Port Qasim was the driving force. The KSE-100 Index closed at 40,548.83. The volume increased to 101.799 million.

On Wednesday the profit-taking was witnessed and all the gains were wiped out and the market closed with Index gaining 43.05 points. The Index closed at 40,591.88 points.

On Thursday due to the government decision of shutdown of furnace oil-based power plants took its toll on Pakistan Petroleum (-0.8%),OGDC (-0.3%) and Pakistan Oildfields (-0.1%). Declining international oil prices also contributed to the Index downfall of 325.67 points to close at 40,266.21.

It was a range bound session between a high of 102 points to low of 183 points on Friday. The Index closed at 40,248,4 shedding 17.80 points.

PARTICIPANTS/ACTIVITY

On average shares of 343 companies were traded. Of these 157 were gainers and 170 were losers and 16 remained unchanged.

Foreigners were net seller of $6,24m during the week; companies were net buyers $3.94m, banks were buyers $2.72m; mutual fund net seller $3.94m and individuals net buyer $0.76m.

Volume leaders during the week were: K-Electric 112m; TRG Pakistan 36m; World Call Telcom and Azgard Nine 20m each; Unity Foods (Right); Dost Steels 12m each; Pak Elektron 9m; TPL Tracker Ltd and Bank of Punjab 8m each; Byco Petroleum 7m; Sui Southern Gas 5m and Dewan Motors 4m.

TRIGGERS:
  • SECP has ordered an investigation into the leakage of trading information of Pakistan Stock Exchange on account various complaints received.
  • Current account deficit for July-October increased 122 percent year-on-year as advised by SBP.
  • Time line of road shows for issuance of Eurobond/Sukuk was given. S&P gave improved rating “B” for the issue.
CONCLUSIONS

The KSE-100 Index is currently trading around 2 per cent above its 52-week low of 39,478 points reached in Oct 13. It is below 24 percent its 52-week high of 53,127 points in May 25.

Volatility is expected to continue following the rollover week.

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