RECORDER REVIEW
KARACHI: Driven masterly by the earnings announcement session, investors’ sentiments on Pakistan shares market remained positive during the week that ended on Friday April 29.
This was despite continued selling on the part of foreign investors who sold portfolios worth $ 12.4 million, on net basis.
Major selling of 12.3 million occurred in fertilizer, cement and banking scrips while food producers attracted $3.6 million inflows.
Benchmark KSE-100 index ended 2.9 percent or 979 points higher at 34,719 points after almost five months.
Daily volumes averaged one percent up on 242 million shares the value of which appreciated 17 percent to Rs 11 billion Week-on-Week.
The major gainers included general industrials, oil and gas and industrial metals and mining with 5.5 to 6.2 percent. The losers were fixed line communications and food producers to have declined 2.8 and 1.4 percent, respectively, during the week passed.
“The market staged a solid comeback during the week,” said analysts at Arif Habib Limited Research.
Analysts at Topline Research said quarterly results dominated activity at the local bourse. Activity, they said, was also seen in index heavyweight stocks like oil and gas exploration, which attracted attention on the back of rise in global oil prices and select banking sector stocks.
AHL analysts said the index lost ground in the first session amid concerns over a possible second round of super tax; the sentiment buoyed with optimism the following days driven by resurgent oil price on the back of weaker dollar and falling US production.
“The bull-run was started by the E&P sector with sector contribution of 241 points (OGDC 144 points; PPL 62 points),” they added.
The banking sector, however, spurred the rally with the highest contribution of 355 points, HBL 182 and MCB 94 points, attributed to limited decline in earnings for 1QCY16, possibility of removal of tax on Bonus shares and possible inclusion in MSCI EM Index.
“Result announcements along with material information regarding certain scrips provided impetus for activity,” said market observers.
Illustrating, they said the SSGC and SNGP performed as OGRA allowed LNG Capex as part of return calculation; NML/NCL delivered decent profitability; HUBC surprised investors with higher dividend payout amongst others.
“On the foreign selling front, no surprises were witnessed,” they said.
Giving their outlook, the analysts said whilst the result season, being on its twilight, provided the much-needed stimulus to KSE-100 with both volumes and value increasing over the past two weeks culminating into a strong rally.
“Budgetary proposals from various sectors during the run up to the FY17 budget along with MSCI review would act as triggers,” they viewed.
