KSE-100 index closes down as choppy movement continued in the week
It was a roller coaster ride for investors during the week as the KSE-100 Index started the week in negative while at the end of the week it rally 685 points on Friday to cover most of the Index losses in three days to close at 43,627.10.
Overall it was not a healthy week of trading during the week compared to preceding week as all the indicators showed a decline. The average volume of trading declined to199m shares compared to 245m last week. The market capitalization declined to Rs48 billion as overall Index shed 181 points. The average number companies which were active traders were 367 as compared to374 while foreigner continued to be net sellers of $16.73m while last week it was $8.50m.
The first half of Monday remained positive as the trading made a high of +91 points but came lower in the second half. The continuous selling of foreigners continued with net selling of $8.97m, which dampened the investors’ sentiment. WTI oil price came lower below $60/bbl. The volume declined 5 percent to 215m. The market shed 293.72 points to close at 43,515.08.
The positive news on Tuesday is a possible increase in banks’ pension liabilities to a minimum of Rs8,000 per month on the apex court’s order applying to future pension payments non-retrospectively. The news leads to gain on stock market with commercial banks adding 167 points to the Index. The KSE-100 Index added 175.28 points to close at 43,690.36.
On Wednesday, the news of US referring Pakistan for the terrorist watch list through Financial Action Task Force (FATF) dampened the investors mood as they fear this action as a first step towards putting sanctions on Pakistan. Report of the NAB to place Mr. Nawaz Sharif on the Exit Control List also worried investors. The market shed 337.32 points to close at 43,353.04.
The continuous foreign selling, which month to date amounted to $29m against a net inflow of $81m in January depressed the investors. However on Thursday they were relieved with foreign inflow of $1.63m. The KSE-100 shed 410.69 points to close at 42,942.35.
The stocks on Friday rallied 685 points as institutional buying during the week turned $11.85m. The Index gained 684.75 points to close at 43,627.10. The investors seemed to be comfortable as foreigners turned buyers on Thursday and the fear of Pakistan being put on gray list of Financial Action Task Force were allayed as timely action taken by the government.
On average shares of 367 companies were traded. Of these 140 were gainers and 209 were losers and 18 remained unchanged.
Foreigners were net seller of $16.73m during the week; companies were buyer by $11.85m, Banks were seller $3.25m; Mutual fund net seller $4.39m and individuals net seller $7.36m.
Volume leaders during the week were: Azgard Nine 90m; TRG Pakistan 46m; Fauji Foods 31m; Lotte Chemical 21m; K-Electric 20m; Aisha Steel Mills 19m; PTCL 15m; Engro Polymer 13m; Unity Foods Ltd 11m; World Call Telecom 10m; Dewan Motors 8m; PSX and Hum Network 6m each.
- Int’l oil prices first time in 2018 fall below US$60 /bbl.
- Government’s effort to bring UK investors into PIA & PSM.
- Remittances climb $11.4 billion since July.
- Local assembler sold 23,700 units in Jan 2018, up 13 percent year-on-year.
Future rollover week to start next week, which shall affect the market. As seen this week, future market could be directed by foreigners and local institutions.
Research & Development Institute of Securities Management Research & Training (Pvt) Ltd, Karachi.
Dated: February 17, 2018