Weekly review: KSE-100 loses 0.7% week-on-week amid uncertainty

Investor sentiment continues to remain depressed due to political noise, index ends at 47,577 points


Our Correspondent April 16, 2017
PHOTO: EXPRESS

KARACHI: A highly volatile week saw the KSE-100 Index succumb to political pressure and relapse to its downward trend after the opening days signaled at a slight revival of the bullish run.

The KSE-100 closed the week at 47,577 points, down by 0.7% week-on-week or 312 points, but after the first three days saw the index gain close to 560 points with volumes starting to pick up.

However, the bullish rally was short-lived with heightened volatility, trading in a wide range which drew out improved participation as average daily trade volume/value was up 10% and 9% week-on-week to 171 million shares and $87 million, respectively.

In hindsight, the relief rally seen during the first half showed signs of a dead-cat-bounce, as the last couple of days almost erased those gains. The final nail in the coffin was Friday’s not-so-good session that eroded 373 points or 1.1%.

Overall investor sentiment continued to remain depressed owing to political uncertainty which was further aggravated by renewed tensions with India, and a lack of triggers.

Top drags on the index were Hubco (-2.9% week-on-week) Engro Corp (-3.1%), Mari Petroleum (-7.5%), Fauji Fertilizer Company (-2.7%) & Oil and Gas Development Company (-1.7%) with negative contribution of 233 points, while major contributors were Pakistan Petroleum Limited (+1.9%), Pak Oilfield Limited (+3.1%), Searle (+3%) and Hascol Limited (+7.3%), with positive contribution of 135 points.

During the week, data released by Pakistan Automobile Manufacturers Association (PAMA) depicted 17% year-on-year growth in sales volume during Mar 2017.

Paki Suzuki was the outperformer of the month with sales increasing by 19% year-on-year and Wagon R remaining the prime contributor to growth.

Despite CM Sindh’s threats, Sui Southern Gas Company rallied 7% as investors were likely more thrilled with lifting of moratorium on gas connections & RLNG pipeline project.

Within the big cap sectors, fertiliser (-3% week-on-week) was the laggard as FFC & Engro Corp witnessed selling pressure. Exploration and Production’s declined 1% as oil prices remained volatile. On the flip side, pharmaceuticals (+1.6%), engineering (+1%) & oil marketing company (+0.8%) gained, while banks settled the week on a flattish note (-0.3%).

Individuals (-$5.9 million) were the biggest sellers while foreigners were sellers of $2.8 million during the week as against buying of $9.3 million last week; with most of the selling concentrated in fertiliser ($1.4 million) and textile ($1.3 million), while OMC’s ($2.2 million) saw some buying.

Winners of the week

Punjab Oil



Punjab Oil Mills Ltd manufactures and sells vegetable ghee, cooking oil and laundry soap.

Pak Suzuki Motor



Pak Suzuki Motor Company Limited manufactures, assembles and markets Suzuki cars, pickups, vans and 4 X 4 vehicles.

Hascol Petroleum Limited



Hascol Petroleum Limited (HPL) is a growing oil marketing company in Pakistan.

Losers of the week

Jubilee General Ins Co Ltd



Jubilee General Insurance Company Ltd is a general insurance company which offers both individual life insurance and corporate business insurance. The Company’s individual products include life, personal accident, critical illness, and investment insurance. Jubilee’s corporate products include group life, health and pension schemes.

Mari Petroleum Limited



Mari Petroleum Limited specialises in drilling, production and selling of natural gas.

Pakistan Tobacco



Pakistan Tobacco Company Limited manufactures and sells cigarettes.

Published in The Express Tribune, April 16th, 2017.

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