Business Recorder
Equities stay in red zone

Equities stay in red zone




RECORDER REVIEW

KARACHI: Investors at Pakistan Stock Exchange (PSX) remained sidelined ahead of panama case decision during the last week ended on March 17.

As the market was under pressure, the benchmark KSE-100 index shed 782 points (Week on Week basis) to close at 48,409 points end of the last week down from 49,191 points. WoW basis, market capitalization declined by Rs 166 billion to Rs 9.532 trillion.

Overall trading activity remained thin with both average traded volume and value and declined by 22 percent and 0.5 percent, respectively. Average daily volume stood at 185.55 million shares during the last week compared to 237.62 million a week earlier. Average daily trading value declined to Rs 11.37 billion down from Rs 11.43 billion. The foreign investors emerged net buyers of shares worth of $ 11.1 million during the week as against buying of $15.4 million during the previous week.

Analysts at JS said that clouds of negative sentiments loomed over the bourse during the last week as investors set their eyes on outcome of Panama case.

They said that Habib Bank Ltdís (HBL) traded volume witnessed a 10-year high of 15.6 million shares on the last trading session of the week, on the back of addition to the Global Equity Index Series Asia Pacific of FTSE.

Across the board selling was observed in almost all major heavyweights such as banks (-2.4 percent WoW), OMCs (-1.7 percent WoW), E&Ps (-4.7 percent WoW), power generation (-1.2 percent WoW) etc.

Release of FDI numbers (+6 percent YoY to $1.3 billion during 8MFY17), receipt of CSF inflows amounted to $200 million, T-Bills auction fetching Rs284 billion for the government, Hub Power Company Limited (HUBC) looking to divest 40 percent stake in Thar Energy Limited (TEL) by bringing strategic partners, Fauji Fertilizer Company Limited (FFC) and China Machinery Engineering Corporation (CMEC) with 30 percent and 10 percent equity stakes, respectively and beginning of 6th population census were key highlights of the week, they added.

Analysts at Topline Rsearch said that during the last week the market remained under pressure as investors were sidelined ahead of panama case decision.

In the last session, interest was seen in blue-chip names likely due to rebalancing of FTSE index from Monday. HBL witnessed record turnover of 15.8 million shares, contributing 28 percent to total traded value. The last time over 15 million shares of HBL were traded was back in August 2007.

The outgoing week saw KSE-100 shed 782 points or 1.7 percent WoW, major drags on the index were PPL (-7 percent WoW), OGDC (-4.8 percent),† UBL (-3.3 percent), MCB (-4.9 percent) & FFC (-2.6 percent), with combined negative contribution of 370 points.

Oil stocks declined as crude oil price touched a low of $47.09/bbl, while banks declined due to markets concerns over inflation outlook & flattish profitability. On the sector front, capitalization of E&Pís declined 4.7 percent WoW, while Banks & Fertilizer declined 2.4-2.1 percent. Major buying was seen in Power ($2.9 million) & E&Pís ($1.4 million) whereas selling was seen in Cements ($14.6 million).

According to BIPL Securities index remained under pressure as political noise, low international oil price and stern action by the regulator kept the sentiments negative. Pak. Int. Cont. Ter. Ltd., Colgate Palmolive, Meezan Bank, Bank of Punjab and Fatima Fertilizer Company Ltd were the major gainers while Habib Metro Bank, Faysal Bank, Ghani Glass, Allied Rental Modaraba, and Pakistan Petroleum were the major losers in the benchmark KSE-100 this week, they added.



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