Weekly review: Turmoil in stock market continues amidst global woes
Index loses 0.2% week-on-week as foreigners sell $31.7m worth of shares
Index loses 0.2% week-on-week as foreigners sell $31.7m worth of shares.
KARACHI:
The stock market remained volatile during the week ended January 22 and closed in the red zone as the index shed 52 points (0.2% week-on-week) to close at 30,949 with investors continuing to follow movements in the regional and international markets.
Global markets attempted to rebound during the week on the back of a jump in crude oil prices after hitting a 13-year low. Some revival of interest in the index heavyweight oil and gas sector was noted as value buyers jumped in, but the momentum failed to salvage the tumbling market.
On Friday, the US, European and Asian markets closed higher for the first time in January, helped by a recovery in oil prices and the promise of policy-makers to bring in more support for the economy. Pakistani bourse also felt the impact of this and closed an otherwise tumultuous week on a positive note.
The negative performance of the bourse was the outcome of continued turmoil in the regional and world markets with international oil prices hitting fresh lows in the backdrop of lifting of economic sanctions on Iran. Persistent selling by foreign investors also pushed the local bourse lower.
During the week, the Pakistan Stock Exchange recorded heavy losses with multiple factors contributing to the fall, ranging from investigations into the conduct of investors to institutional flows caused by panic.
The week started off in the red as the market was still reeling from the effects of the previous week. Despite the nervousness, some respite was seen on Tuesday when the index gained 464.21 points. However, it proved short-lived and the index again slipped with a slight recovery on Friday.
The exploration and production sector led trading during the week following announcement by the Russian gas giant Gazprom that it would supply 5-7 million tons of liquefied natural gas to Pakistan per year in the medium term.
Cement stocks also attracted some interest after impressive first-half results of Maple Leaf Cement. Overall, investor participation improved and remained tilted towards high-cap stocks, which was reflected in the 10% week-on-week pickup in average traded value to $76 million.
Major decliners during the week were banks (down 1.5% week-on-week) in anticipation of a further cut in policy rate in the upcoming monetary policy and chemicals (down 2.2% WoW) amidst weak profitability outlook for the fertiliser sector.
Volumes improved to an average of 147 million shares, up 13% WoW, with retail favourites - TRG Pakistan, K-Electric, Sui Northern Gas Pipelines and Pakistan International Airlines - representing 23% of the overall market volumes.
Foreigners remained net sellers, offloading $31.74 million worth of shares during the week compared to net selling of $4.2 million a week earlier.
Winners of the week
Kohinoor Textile
Kohinoor Textile Mills Ltd produces textiles. The company weaves, dyes, and prints natural and synthetic fibres.
Sui Northern Gas Pipelines
Sui Northern Gas Pipelines Limited purchases, purifies, transmits, distributes, and supplies natural gas, in addition to marketing Liquefied Petroleum Gas.
National Refinery
National Refinery Ltd manufactures and distributes lube base oils and petroleum fuels. The company markets its products to customers throughout Pakistan.
Losers of the week
Fatima Fertilizer Company Ltd
Fatima Fertilizer Co Ltd produces fertilisers. The company is developing a fully integrated fertilizer complex, capable of producing Ammonia, Nitric Acid, Nitro Phosphate, Nitrogen Phosphorous Potassium and Calcium Ammonium Nitrate.
Ferozsons Laboratories
Ferozsons Laboratories Ltd manufactures and sells pharmaceutical products.
MCB Bank Limited
MCB Bank Ltd is a full service commercial bank. The bank offers a wide range of financial products and advice for personal and corporate customers, including online banking services.
Published in The Express Tribune, January 24th, 2016.
The stock market remained volatile during the week ended January 22 and closed in the red zone as the index shed 52 points (0.2% week-on-week) to close at 30,949 with investors continuing to follow movements in the regional and international markets.
Global markets attempted to rebound during the week on the back of a jump in crude oil prices after hitting a 13-year low. Some revival of interest in the index heavyweight oil and gas sector was noted as value buyers jumped in, but the momentum failed to salvage the tumbling market.
On Friday, the US, European and Asian markets closed higher for the first time in January, helped by a recovery in oil prices and the promise of policy-makers to bring in more support for the economy. Pakistani bourse also felt the impact of this and closed an otherwise tumultuous week on a positive note.
The negative performance of the bourse was the outcome of continued turmoil in the regional and world markets with international oil prices hitting fresh lows in the backdrop of lifting of economic sanctions on Iran. Persistent selling by foreign investors also pushed the local bourse lower.
During the week, the Pakistan Stock Exchange recorded heavy losses with multiple factors contributing to the fall, ranging from investigations into the conduct of investors to institutional flows caused by panic.
The week started off in the red as the market was still reeling from the effects of the previous week. Despite the nervousness, some respite was seen on Tuesday when the index gained 464.21 points. However, it proved short-lived and the index again slipped with a slight recovery on Friday.
The exploration and production sector led trading during the week following announcement by the Russian gas giant Gazprom that it would supply 5-7 million tons of liquefied natural gas to Pakistan per year in the medium term.
Cement stocks also attracted some interest after impressive first-half results of Maple Leaf Cement. Overall, investor participation improved and remained tilted towards high-cap stocks, which was reflected in the 10% week-on-week pickup in average traded value to $76 million.
Major decliners during the week were banks (down 1.5% week-on-week) in anticipation of a further cut in policy rate in the upcoming monetary policy and chemicals (down 2.2% WoW) amidst weak profitability outlook for the fertiliser sector.
Volumes improved to an average of 147 million shares, up 13% WoW, with retail favourites - TRG Pakistan, K-Electric, Sui Northern Gas Pipelines and Pakistan International Airlines - representing 23% of the overall market volumes.
Foreigners remained net sellers, offloading $31.74 million worth of shares during the week compared to net selling of $4.2 million a week earlier.
Winners of the week
Kohinoor Textile
Kohinoor Textile Mills Ltd produces textiles. The company weaves, dyes, and prints natural and synthetic fibres.
Sui Northern Gas Pipelines
Sui Northern Gas Pipelines Limited purchases, purifies, transmits, distributes, and supplies natural gas, in addition to marketing Liquefied Petroleum Gas.
National Refinery
National Refinery Ltd manufactures and distributes lube base oils and petroleum fuels. The company markets its products to customers throughout Pakistan.
Losers of the week
Fatima Fertilizer Company Ltd
Fatima Fertilizer Co Ltd produces fertilisers. The company is developing a fully integrated fertilizer complex, capable of producing Ammonia, Nitric Acid, Nitro Phosphate, Nitrogen Phosphorous Potassium and Calcium Ammonium Nitrate.
Ferozsons Laboratories
Ferozsons Laboratories Ltd manufactures and sells pharmaceutical products.
MCB Bank Limited
MCB Bank Ltd is a full service commercial bank. The bank offers a wide range of financial products and advice for personal and corporate customers, including online banking services.
Published in The Express Tribune, January 24th, 2016.