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STOCK WATCH.

Byline: ISMAR

POLITICAL DISTURBANCE KEEPS INDEX UNDER PRESSURE

SUMMARY

The week started on high note in the background of Prime Minister family offshore companies revealed in the Panama Papers. The tone of the market and the sentiment prevailed during the week owed much to this political disturbance created by the Panama Papers through out the week.

The stock market remained volatile on Monday after the last week bullish rallies. Concern over the political uncertainty and profit-taking dominated the bourse despite rebounding crude oil prices and unchanged Monetary Policy rate. The Index sank 401 points and closed at 33,566. Regional markets posting a mixed trend for the day and fall in global crude oil prices affect the market.

A range bound session was witnessed on Pakistan Stock Exchange where the KSE-100 Index on Tuesday closed 51 points higher at 33,617 points.The Economic Coordination Committee (ECC) decision to issue sovereign guarantee for syndicated TFCs to the power sector worth Rs25 billion and approval of non-cash settlement of Rs70.167 billion power sector receivable/payable among various government inspired bullish sentiment in Pakistan State Oil, which will be key beneficiary of the aforementioned steps.

Volatility prevailed in the stock market as the Index juggled in the band of 314 points to finally close with minor upside of 29.20 at 33,646.10 on Wednesday. Trade volume rose to 187 million shares compared to 156 million on Tuesday shares. Pressure remained in the cement sector on the back of the news that Saudi Arabia has lifted its export ban thus increasing competition for the already depressed exports.

Stocks remained positive for all of the day on Thursday. Stocks closed higher led by select scrips across the board on strong valuation. Refineries, fertilizers and select financial pulled the Index into positive after the fall in the global crude price. Pakistan Stock Exchange benchmark KSE-100 Index gained 0.36 % or 121.49 points to close at 33,676.59.

On Friday the market opened on a positive note when it made an intraday high of 141.97 points. It came under selling pressure at later stage and profit-taking was witnessed in the cement sector LUC (-0.58%) DGKC (-0.60%) and FCCL (-0.02 %). The market closed negative by -0.47 at 33,767.12.

PARTICIPANTS/ACTIVITY

On average shares of 344 companies were traded. Of these 146 were gainers and 176 were losers and 22 remained unchanged.

Foreigners were net seller by $1.48m during the week; companies were net buyers $1.56m, Banks buyer $6.37m; Mutual Fund net seller $5.66m and individuals net seller $0.67m.

Volume leaders during the week were: TRG Pakistan 131m; Byco Petroleum 74m; Jah Sidd 46m; Dewan Cement 42m; Descon Chemical 23m; Pak Elektron 16m; PIA C (A) 7m and National Bank 7m.

TRIGGERS

- Auto sales numbers rose by 11% MoM during March.

- Approval of PIA bill by the government.

- Lifting of ban by Saudi Arabia on export of cement.

- ECC granting additional 18 months extension to refrain for upgrading the existing facilities.

- Leakage of Panama Papers.

FUTURE OUTLOOK

A number of major results are expected next week (FFBL, LUC, HBL and MCB and many others) which could give vigor to the market.

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Publication:Pakistan & Gulf Economist
Geographic Code:2PANA
Date:Apr 24, 2016
Words:606
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