Weekly review: Oil price jump takes bourse to new all-time high

KSE 100-share Index ends 0.61% higher week-on-week

KARACHI: In the outgoing week, the bourse conquered new territory and closed at an all-time high of 43,310 points, up 0.61% week-on-week.

Pakistan Stock Exchange (PSX) exhibited resilience against incessant foreign selling as the benchmark KSE 100-share Index closed higher in spite of net foreign selling of $34 million during the week.

The market started the week on a positive note with news of decrease in gas prices for industrial and fertiliser sectors, which sparked investor interest. However, rupee’s depreciation in the open market and concern over recent foreign selling hurt sentiments of investors.

Additionally, the announcement of monetary policy by the State Bank of Pakistan that kept the discount rate unchanged at 5.75% resulted in lacklustre activity in banking stocks.

International crude oil prices jumped up 10% following a production cut decision by the Organisation of Petroleum Exporting Countries (Opec), which brought the local bourse back to a state of optimism.

Locals, particularly mutual funds and individuals, continued to absorb most of the selling pressure, with major buying interest witnessed in oil stocks.

Other major sectors that outperformed the index during the week were glass and ceramics (+6.3% week-on-week) due to expected uptick in construction activity and fertilisers (+1.4%) on the back of rising international urea prices and last week’s cut in gas prices.

Top three gainers over the outgoing week were tobacco, food and personal care and oil and gas exploration sectors, which were up 9%, 1.1% and 0.9% respectively.

Top three losers were oil and gas marketing, commercial banks and cement companies, which fell 1.9%, 0.9% and 0.5% respectively.

Average daily volumes for the outgoing week showed a decrease of 2% week-on-week to 464 million shares while average daily values decreased 2% week-on-week to Rs15 billion ($144 million) over the week.

Foreigners remained net sellers of $33.6 million during the week. Banks, oil and gas exploration and textile sectors saw major net sellers of $8.4 million, $8 million and $5.6 million respectively while buying was seen in oil and gas marketing of $2.2 million.

Winners of the week

Indus Dyeing



Indus Dyeing & Manufacturing Company Ltd manufactures and sells yarn.

Philip Morris Pak Ltd



Philip Morris Pakistan Limited manufactures and sells tobacco and cigarettes.

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

Sui Southern Gas Company



Sui Southern Gas Company Limited transmits and distributes natural gas, and constructs high pressure transmission and low pressure distribution systems. The company’s transmission system extends from Sui in Balochistan to Karachi.

Sui Northern Gas Pipelines



Sui Northern Gas Pipelines Limited purchases, purifies, transmits, distributes, and supplies natural gas, in addition to marketing liquefied petroleum gas.

Nishat (Chunian) Limited



Nishat Chunian Limited manufactures and sells yarn and fabric. The company operates spinning, weaving, dyeing and finishing units.

Published in The Express Tribune, December 4^th, 2016.

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