Weekly review: Market enters recovery mode as KSE-100 rises 340 points
All major sectors posted recovery; cement and financial stocks remain in limelight
All major sectors posted recovery; cement and financial stocks remain in limelight.
KARACHI:
The stock market resumed its recovery drive with investors engaging in value-buying, resulting in the benchmark KSE-100 index rising 340 points (1%) during the week ended December 11.
After four atrocious weeks that saw the index plummet from 34,426 to 31,708 by the middle of last week, the KSE-100 managed to pull off a decent return by recovering 1,338 points since and managing to close at 33,048 on Friday.
All major sectors performed strongly during the week with the glaring exception of the heavyweight Oil and Gas sector which kept the entire market under pressure due to the tumbling price of crude oil in global markets. Foreign selling also continued unabated, but failed to dent the positive sentiment at the bourse.
The week opened on a positive note following the peaceful conclusion of local body elections over the weekend which further strengthened the mandate of the ruling PML-N party. Further positivity was generated by the Indian foreign minister’s visit to the country and announcing the resumption of dialogue between the two countries.
By mid-week, the KSE-100 index had breached the 33,000-point barrier as rallies were witnessed in all major sectors and the oil and gas sector showing resilience despite falling oil prices. The index would climb all the way up to 33,211 on Thursday before receding back to close at 33,048 on Friday.
The banking and fertiliser sectors dominated proceedings throughout the week as investors jumped at the attractive valuations on offer. The cement sector also pitched in with a strong performance after impressive sales figures were revealed.
The market received a further boost in the form of macroeconomic data which revealed that the country’s foreign exchange crossing the $20-billion mark. Remittance figures for the first five months of the current fiscal year also showed a 7.6% year-on-year jump to $8.1 billion.
It was a rough week for the heavyweight Oil and Gas sector which suffered from crashing global oil prices in the wake of OPEC deciding to scrap its production limits. The price of Brent crude tumbled to $38 per barrel by the end of the week from $44 a week earlier.
The sector remained resilient to the global developments for a good part of the week but succumbed to selling pressure by the end which saw sell-offs in Pakistan Oilfields, Pakistan Petroleum and the Oil and Gas Development Company.
Foreigners continued to be net sellers at the bourse, offloading a net of $10.2 million worth of equity during the week, on the back of $17 million net selling in the previous week.
Average daily volumes shot up 16.9% and stood at 180.2 million shares traded per day while average daily values also improved by 17.3% and were recorded at Rs8.97 billion per day. The Karachi Stock Exchange’s market capitalisation stood at Rs6.95 trillion ($66.7 billion) at the end of the week.
Winners of the week
Mari Petroleum Company Limited
Mari Petroleum Limited specialises in the drilling, production and selling of natural gas.
Bata Pakistan
Bata Pakistan Limited manufactures and sells rubber, leather, and microlon sandals and shoes.
NetSol Technologies
NetSol Technologies provides information technology solutions and services. The company’s services include custom software development, technology outsourcing, systems integration, application development, and business intelligence consulting.
Losers of the week
Nestle
Nestle Pakistan Limited manufactures, imports and sells dairy products, confectioneries, culinary products and fruit juices. The group’s products include milk, butter, cream, noodles, coffees, and dietary and infant products.
Allied Rental Modaraba
Allied Rental Modaraba operates an equipment rental company. The company rents branded power generators, material handling equipment and construction machines for all types of applications.
Pakistan Oilfields Limited
Pakistan Oilfields Limited specialises in the exploration, drilling, production and transmission of petroleum. The Company also markets Liquefied Petroleum Gas (LPG).
Published in The Express Tribune, December 13th, 2015.
The stock market resumed its recovery drive with investors engaging in value-buying, resulting in the benchmark KSE-100 index rising 340 points (1%) during the week ended December 11.
After four atrocious weeks that saw the index plummet from 34,426 to 31,708 by the middle of last week, the KSE-100 managed to pull off a decent return by recovering 1,338 points since and managing to close at 33,048 on Friday.
All major sectors performed strongly during the week with the glaring exception of the heavyweight Oil and Gas sector which kept the entire market under pressure due to the tumbling price of crude oil in global markets. Foreign selling also continued unabated, but failed to dent the positive sentiment at the bourse.
The week opened on a positive note following the peaceful conclusion of local body elections over the weekend which further strengthened the mandate of the ruling PML-N party. Further positivity was generated by the Indian foreign minister’s visit to the country and announcing the resumption of dialogue between the two countries.
By mid-week, the KSE-100 index had breached the 33,000-point barrier as rallies were witnessed in all major sectors and the oil and gas sector showing resilience despite falling oil prices. The index would climb all the way up to 33,211 on Thursday before receding back to close at 33,048 on Friday.
The banking and fertiliser sectors dominated proceedings throughout the week as investors jumped at the attractive valuations on offer. The cement sector also pitched in with a strong performance after impressive sales figures were revealed.
The market received a further boost in the form of macroeconomic data which revealed that the country’s foreign exchange crossing the $20-billion mark. Remittance figures for the first five months of the current fiscal year also showed a 7.6% year-on-year jump to $8.1 billion.
It was a rough week for the heavyweight Oil and Gas sector which suffered from crashing global oil prices in the wake of OPEC deciding to scrap its production limits. The price of Brent crude tumbled to $38 per barrel by the end of the week from $44 a week earlier.
The sector remained resilient to the global developments for a good part of the week but succumbed to selling pressure by the end which saw sell-offs in Pakistan Oilfields, Pakistan Petroleum and the Oil and Gas Development Company.
Foreigners continued to be net sellers at the bourse, offloading a net of $10.2 million worth of equity during the week, on the back of $17 million net selling in the previous week.
Average daily volumes shot up 16.9% and stood at 180.2 million shares traded per day while average daily values also improved by 17.3% and were recorded at Rs8.97 billion per day. The Karachi Stock Exchange’s market capitalisation stood at Rs6.95 trillion ($66.7 billion) at the end of the week.
Winners of the week
Mari Petroleum Company Limited
Mari Petroleum Limited specialises in the drilling, production and selling of natural gas.
Bata Pakistan
Bata Pakistan Limited manufactures and sells rubber, leather, and microlon sandals and shoes.
NetSol Technologies
NetSol Technologies provides information technology solutions and services. The company’s services include custom software development, technology outsourcing, systems integration, application development, and business intelligence consulting.
Losers of the week
Nestle
Nestle Pakistan Limited manufactures, imports and sells dairy products, confectioneries, culinary products and fruit juices. The group’s products include milk, butter, cream, noodles, coffees, and dietary and infant products.
Allied Rental Modaraba
Allied Rental Modaraba operates an equipment rental company. The company rents branded power generators, material handling equipment and construction machines for all types of applications.
Pakistan Oilfields Limited
Pakistan Oilfields Limited specialises in the exploration, drilling, production and transmission of petroleum. The Company also markets Liquefied Petroleum Gas (LPG).
Published in The Express Tribune, December 13th, 2015.