Market watch: Foreigners net sellers, but index breaks 11-day losing streak
Benchmark KSE-100 index gains 464.21 points
Benchmark KSE-100 index gains 464.21 points.
KARACHI:
Pakistan equities broke their 11-session losing streak to end positive and power past the 31,000-point level on Tuesday.
A bearish spell cast its shadow over the benchmark-100 index with stocks taking a hammering amid global turmoil and dip in crude oil prices.
However, attractive valuations meant investors were now happy to inject money as the oil and gas sector led the charge.
At close on Tuesday, the Pakistan Stock Exchange’s (PSX) KSE-100 index rose 1.52% or 464.21 points to end at 31,092.61.
Elixir Securities analyst Faisal Bilwani said gains were led primarily by institutional flows, as value hunters looked to take full advantage of the prevailing weakness with index heavy oil stocks leading the upside.
“Oil and Gas Development Company (OGDC PA +3.38%) and Pakistan Oilfields (POL PA +2.35%) traded and closed higher, while Pakistan Petroleum (PPL PA +4.97%) closed at its upper price limit.
“Cements, on the other hand, generated volumes but closed mixed, while financials also failed to provide any serious upside on renewed concerns of a possible rate cut,” he said.
“Retail investors also heaved a sigh of relief as small and mid-caps witnessed a sharp bounce back, while foreigners were reported sellers in index names.
“We see momentum to continue but volatility will likely increase from here with market tracking the flows. Moreover, we see a shift in focus to earnings and pay-outs as key names start to announce earnings from Wednesday,” he added.
Meanwhile, JS Global analyst Ovais Ahsan said heavy weights in the oil and gas sector OGDC (+3.38%), POL (+2.35%) and PPL (+5%) contributed to market recovery, as crude oil recovered to trade above $29/bbl during the trading session.
“Sui Northern Gas Pipeline Limited (SNGP) closed on its upper circuit as the gas utility company posted comparatively better results for the financial year 2014 in which its losses reduced on YoY basis on the basis of gas development surcharge imposed,” added Ahsan.
“IBL Healthcare Limited (IBLHL) closed on its upper circuit as Searle Pakistan in their notice to exchange declared that the board of directors in their meeting had decided to make an investment in its subsidiary (IBLHL) to raise its stake to 75% collectively,” he concluded.
Trade volumes fell to 154 million shares compared with Monday’s tally of 210 million shares.
Shares of 335 companies were traded on Tuesday. At the end of the day, 261 stocks closed higher, 51 declined while 23 remained unchanged. The value of shares traded during the day was Rs8.2 billion.
TRG Pakistan Limited was the volume leader with 11.9 million shares, gaining 1.19 to finish at Rs27.49. It was followed by Jahangir Siddiqui and Company with 7.78 million shares, gaining Rs0.57 to close at Rs17.31 and Pace Pakistan Limited with 7.58 million shares, gaining Rs0.16 to close at Rs5.99.
Foreign institutional investors were net sellers of Rs1.06 billion during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, January 20th, 2016.
Pakistan equities broke their 11-session losing streak to end positive and power past the 31,000-point level on Tuesday.
A bearish spell cast its shadow over the benchmark-100 index with stocks taking a hammering amid global turmoil and dip in crude oil prices.
However, attractive valuations meant investors were now happy to inject money as the oil and gas sector led the charge.
At close on Tuesday, the Pakistan Stock Exchange’s (PSX) KSE-100 index rose 1.52% or 464.21 points to end at 31,092.61.
Elixir Securities analyst Faisal Bilwani said gains were led primarily by institutional flows, as value hunters looked to take full advantage of the prevailing weakness with index heavy oil stocks leading the upside.
“Oil and Gas Development Company (OGDC PA +3.38%) and Pakistan Oilfields (POL PA +2.35%) traded and closed higher, while Pakistan Petroleum (PPL PA +4.97%) closed at its upper price limit.
“Cements, on the other hand, generated volumes but closed mixed, while financials also failed to provide any serious upside on renewed concerns of a possible rate cut,” he said.
“Retail investors also heaved a sigh of relief as small and mid-caps witnessed a sharp bounce back, while foreigners were reported sellers in index names.
“We see momentum to continue but volatility will likely increase from here with market tracking the flows. Moreover, we see a shift in focus to earnings and pay-outs as key names start to announce earnings from Wednesday,” he added.
Meanwhile, JS Global analyst Ovais Ahsan said heavy weights in the oil and gas sector OGDC (+3.38%), POL (+2.35%) and PPL (+5%) contributed to market recovery, as crude oil recovered to trade above $29/bbl during the trading session.
“Sui Northern Gas Pipeline Limited (SNGP) closed on its upper circuit as the gas utility company posted comparatively better results for the financial year 2014 in which its losses reduced on YoY basis on the basis of gas development surcharge imposed,” added Ahsan.
“IBL Healthcare Limited (IBLHL) closed on its upper circuit as Searle Pakistan in their notice to exchange declared that the board of directors in their meeting had decided to make an investment in its subsidiary (IBLHL) to raise its stake to 75% collectively,” he concluded.
Trade volumes fell to 154 million shares compared with Monday’s tally of 210 million shares.
Shares of 335 companies were traded on Tuesday. At the end of the day, 261 stocks closed higher, 51 declined while 23 remained unchanged. The value of shares traded during the day was Rs8.2 billion.
TRG Pakistan Limited was the volume leader with 11.9 million shares, gaining 1.19 to finish at Rs27.49. It was followed by Jahangir Siddiqui and Company with 7.78 million shares, gaining Rs0.57 to close at Rs17.31 and Pace Pakistan Limited with 7.58 million shares, gaining Rs0.16 to close at Rs5.99.
Foreign institutional investors were net sellers of Rs1.06 billion during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, January 20th, 2016.