Bourse remained under pressure over low cement sales, volatile oil prices . PHOTO: FILE
Excitement over earnings announcement was largely offset by uncertainty in the political sphere as the wider market looked for a clearer direction.
Pakistan equities rose on the first trading day of the week with the benchmark index reaching a fresh all-time high, helped by gains in financial, exploration and production (E&P) stocks and select index names. The run came after the State Bank of Pakistan maintained a status quo in its monetary policy announcement.
However, correction soon kicked in as the market ended negative in the remaining four sessions. Volatile oil prices, expectation of decline in cement dispatches, overcast political situation along with a spree of profit taking specifically in cement, fertiliser and banking sector kept investors at bay.
Selling pressure continued in the exploration and production sector during the week as the oil broke below $40 per barrel for the first time since April 2016. Meanwhile, investor interest developed in the chemical sector on falling crude prices.
Among auto sector stocks, investors remained attracted to Pak Suzuki Motor Company (PSMC) after news that the company has raised prices of all its car models by 3% with effect from August 1.
Investors once again turned their eyes to Hi-Tech Lubricants, which informed the Pakistan Stock Exchange (PSX) that it has started commercial production from its expanded lube-oil blending plant.
In other news, Pakistan’s successful conclusion of the IMF programme brought stability and government’s announcement of an unchanged monetary policy caused the banking stocks to rally.
Lucky Cement weighed heavily on the index, declining 7.3% over the outgoing week as concerns of its 660 megawatt coal power plant hitting snags gained traction.
The Foreign Institutional Portfolio Investment (FIPI) witnessed an outflow of $7.8 million during the four sessions of this week vs $10.9 million inflow last week, whereas the average volume traded increased by 23% week-on-week and the average value of shares traded increased by 3.7% week-on-week .
Winners of the week
International Steels Limited
International Steels Ltd manufactures steel. The company produces cold rolled sheet, and hot dipped galvanised sheet steels. International Steels serves the construction, appliances, automotive, agricultural implements, and packaging industries.
Pak Suzuki Motor
Pak Suzuki Motor Company Limited manufactures, assembles and markets Suzuki cars, pickups, vans and 4 X 4 vehicles.
IGI Insurance
International General Insurance Co of Pakistan Limited provides property and casualty insurance products and services. The company’s products include fire, marine and motor insurance.
Losers of the week
Lucky Cement
Lucky Cement Limited manufactures and sells cement. The company’s cement brands include Lucky Gold Brand, Lucky Brand, Lucky Star Brand. Lucky Cement’s main plant site is located at Lucky Marwat district in Khyber-Pakhtunkhwa.
Pakistan Tobacco Company
Pakistan Tobacco Company Limited manufactures and sells cigarettes.
DG Khan Cement
DG Khan Cement Company Limited manufactures and sells portland cement.
Published in The Express Tribune, August 7th, 2016.
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