Weekly review: KSE-100 gains 3.73% as MSCI EM inclusion nears

KARACHI: The benchmark index continued its bullish run in the outgoing week, gaining 1,895 points or 3.73% as investors accumulated index heavy names ahead of Pakistan’s inclusion in the MSCI Emerging Markets Index on June 1.

The Pakistan Stock Exchange’s (PSX)  KSE-100 Index closed the week at 52,636.87 points, retreating only on Thursday and Friday as profit-booking kicked in ahead of the federal budget announcement. A bullish rally in the first three sessions of the week was followed by lackluster sessions as Budget 2017-18 took over.

Moreover, decline in oil prices (5%) following the OPEC meeting where a lower than expected oil output cut was approved for the next nine months also dented the sentiments at the bourse.

Index leaders for the week were Oil Gas Development Company (+9.4%), Engro Corp (+7.4%), Hub Power Company (+6.6%), Pakistan Petroleum Limited (+7.3%) and Habib Bank Limited (+3%), adding 720 points.

In terms of absolute return, MSCI EM Small Cap surprises Thal Limited and International Steel Limited gained almost 15% during the outgoing week.

On the sector front; engineering outperformed the index with its capitalisation expanding 7.7% week-on-week as NTC determined that China has been dumping re-bars in Pakistan at half price; while exploration and production’s also beat the market gaining 7.5%.

Fertilisers, power generation companies and banks broadly tracked the index gaining between 2.8-4%. Autos, textiles, pharma, food and cement underperformed, gaining between 2.1%-0.7%, while transport and sugar declined between 2.3%-2.4%.

Foreigners were net buyers of $6.5 million worth of shares where banking and oil and gas sector attracted major buying of $9.9 million and $7.1 million worth of shares, respectively.

Activity also improved as average daily traded and average daily traded value rose 15% and 13%, respectively.

Winners of the week

Oil and Gas Development Company



Oil and Gas Development Co Limited explores and develops oil and natural gas properties in Pakistan.

Engro Corp   



Engro Corporation Ltd manufactures and markets fertilisers and plastics, generates electricity, and processes food. The company produces nitrogenous, phosphatic and blended fertilisers, polyvinyl chloride resin, and industrial automation products, develops electricity generating plants, produces dairy foods and operates a liquefied petroleum gas and liquid chemical terminal.

Hub Power Company



Hub Power Company Limited owns, operates and maintains an oil-fired power station in Pakistan. The company delivers electricity for distribution to industrial, commercial, agricultural, and domestic customers. Hub’s clients include Water and Power Development Authority.

Losers of the week

Pakistan International Container Terminal  



Pakistan International Container Terminal operates a container shipping facility in Karachi.

JDW Sugar Mills Ltd



JDW Sugar Mills Ltd produces and sells crystalline sugar. The company is located in District Rahim Yar Khan, and formerly named United Sugar Mills Limited.

IGI Insurance Ltd



IGI Insurance provides property and casualty insurance products and services. The company’s products include fire, marine and motor insurance.

Published in The Express Tribune, May 28^th, 2017.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.