Weekly review: KSE-100 ends with 982-point fall as bearish run continues

Benchmark index drops 2.3%, settles at 41,105.40

KARACHI: The stock market endured another bearish week, ending four of the five sessions in the red with the KSE-100 Index falling 982 points or 2.3% to settle at 41,105.40 by Friday’s close.

Investors were shaken by several significant financial result announcements that came below expectations. Engro Corp., National Bank and Pakistan State Oil stood out for positive results while those of Amreli Steels and Pak Elektron were the notable disappointments.

External factors also contributed to the market’s slide including unrest in the political arena due to bailable arrest warrants being issued for ex-PM Nawaz Sharif. The week also witnessed a drop in the country’s foreign exchange reserves, which dragged stocks further down.



Stocks also took a hit due to the Competition Commission of Pakistan’s (CCP) opening of old cases on cement sector returns and a major increase in power tariff which is expected to hamper textile production.

After a strong positive streak, the index started a steep slide from Monday onwards due to massive profit-taking and political uncertainty returning to centrestage.

The story remained the same for most part of the week except for a brief respite on Wednesday when the index ended in green after a technical glitch stopped trading around midday.

A lack of buyers coupled with disappointing financial results of notable index names hit the market further with the index closing in red on Tuesday, Thursday and Friday.

That said, average volumes during the week were 135 million shares, down by 37% week-on-week, whereas the average traded value declined by 24%. Engro Polymer dominated the volumes.

Sectors that triggered the downward cycle were banks (230 points), cement (158 points), and oil and gas exploration and production (113 points), tobacco and textiles.

Stock-wise, the top five laggards were Engro, OGDC, PAEL, HBL and DGKC, that wiped 383 points off the market.

In terms of foreign inflows, “the domestic equity bourse attracted the biggest net inflows in a single week since May 2013, led by official government statements denouncing the need for rupee devaluation,” according to AHL Research.

During the week, foreigners sold stocks worth $5.35 million. On the domestic front, selling was concentrated in fertilisers ($3.8 million), oil and gas exploration and production companies ($2 million) and oil marketing companies ($2.0 million).

Net selling was seen in mutual funds as well with $11.3 million being offloaded while Broker Proprietary Trading sold shares worth $11.0 million.



Individual investors were the primary buyers during the week, purchasing shares worth USD 16.4million followed by USD 4.5million by other organisations and $3.0 million by insurance companies

Among major highlights of the week were; the government cleared Rs20 billion of fertiliser subsidy, Engro Polymer wants to build Naptha Cracker Complex, imposition of anti-dumping duty on Chinese steel, HBL CEO retired, car importers panic as rates on used cars also get revised, construction of Diamer-Basha Dam starts next year, KAPCO to buy 17.4% stake in HUBCO for Rs22 billion.

Winners of the week

Feroze 1888



Feroze 1888 Mills Ltd. manufactures and sells a wide range of cotton towels and fabrics.

Bannu Woollen Mills



Bannu Woollen Mills Limited manufactures and sells woollen yarn, cloth and blankets.

Pakistan Tobacco



Pakistan Tobacco Company Limited manufactures and sells cigarettes.

Losers of the week

Pak Elektron



Pak Electron Limited manufactures and sells a variety of electrical products and domestic appliances. The Group’s power products include transformers, energy meters and switchgears. Their appliances consist of a range of deep freezers and air conditioners. The Group also has an agreement with Sony Pakistan (Pvt) Ltd., for which Pak Electron will manufacture Sony brand televisions.

Crescent Jute Products



Crescent Jute Products, Ltd. manufactures and markets jute, and cotton textiles.

Nishat  Chunian



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

Published in The Express Tribune, October 29^th, 2017.

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