Weekly review: KSE-100 plummets 579 points during week of turmoil
Foreigners continue to offload equities, oil companies constantly taking a battering.
KARACHI:
The deadliest terror attack in the country’s history left the stock market reeling as the benchmark KSE-100 index fell 579 points (1.8%) to close at 31,011 at the end of trading on Friday.
After a positive start to the week, sentiment at the bourse quickly turned sour following the attack on a school in Peshawar.
The stock market fell by a massive 814 points (2.6%) on the day of the attack and fell a further 209 (0.7%) the following day, closing at 30,667 on Wednesday. A few positive news flows on the political and macroeconomic fronts aided the market’s recovery in the final two days, resulting in the index ending the week at 31,011 on Friday.
Global oil prices also continued to fall during the week with the price of crude oil falling below $60 per barrel. As a result, the heavyweight oil and gas sector took a hit, losing 2.7% of its value during the week. A slight recovery in oil prices towards the end of the week was not enough to recover the earlier declines.
Foreigners continued to be net sellers and were a reason behind the market’s ill fortunes. Foreign selling was recorded at a net of $30 million worth of equity, following up on the $24 million net selling in the previous week.
As the nation mourned the loss of so many lives in the Peshawar attacks, some positives emerged in the form of the Pakistan Tehreek-e-Insaf calling off its nationwide protests and stood united with the government in its resolve to rid the country of terrorism. The easing of political tensions was welcomed by the market and reflected in the recovery towards the end of the week.
During the week, the board of the International Monetary Fund also approved the disbursement of $1.05 billion to the country which will result in a huge improvement in the country’s foreign exchange reserves situation and also stem the decline of the rupee against the US dollar.
The government also announced a reduction in electricity tariff by Rs2.32 per KWh during the week, which will provide a boost to the country’s industries. Furthermore, the declining tariff along with the falling prices of POL products will result in lower inflation moving forward and is highly likely to result in a significant discount rate cut in the State Bank’s monetary policy announcement in January.
Average trading volumes continue to fall and were down 15% at 203 million shares traded per day. Similarly average daily values also fell 5% clocking in at Rs12 billion daily. The Karachi Stock Exchange’s market capitalisation stood at Rs7.09 trillion ($70.5 billion) at the end of the week.
Winners of the week
Shifa Int Hospitals Ltd
Shifa International Hospitals Limited establishes and runs medical centres and hospitals in Pakistan. The company’s clinical services include medicine, paediatrics, surgical, obstetric and gynaecology, dentistry, rehabilitation services and ophthalmology. Shifa also provides diagnostic services including specialised diagnostics, radiology and clinical laboratory.
Sui Northern Gas Pipelines
Sui Northern Gas Pipelines Limited purchases, purifies, transmits, distributes, and supplies natural gas, in addition to marketing Liquefied Petroleum Gas.
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 in Sindh.
Losers of the week
Grays Of Cambridge
Grays of Cambridge (Pakistan) Limited is a holding company. The company, through its subsidiaries, manufactures and exports sporting goods, specialising in hockey sticks.
Mari Gas
Mari Gas Company Limited specialises in the drilling, production and selling of natural gas.
National Foods
National Foods Limited is a diversified food manufacturer. The Group’s products include recipe blends, dehydrated vegetables, pickles, salts, snack foods, desserts, and a number of kinds of health foods.
Published in The Express Tribune, December 21st, 2014.
The deadliest terror attack in the country’s history left the stock market reeling as the benchmark KSE-100 index fell 579 points (1.8%) to close at 31,011 at the end of trading on Friday.
After a positive start to the week, sentiment at the bourse quickly turned sour following the attack on a school in Peshawar.
The stock market fell by a massive 814 points (2.6%) on the day of the attack and fell a further 209 (0.7%) the following day, closing at 30,667 on Wednesday. A few positive news flows on the political and macroeconomic fronts aided the market’s recovery in the final two days, resulting in the index ending the week at 31,011 on Friday.
Global oil prices also continued to fall during the week with the price of crude oil falling below $60 per barrel. As a result, the heavyweight oil and gas sector took a hit, losing 2.7% of its value during the week. A slight recovery in oil prices towards the end of the week was not enough to recover the earlier declines.
Foreigners continued to be net sellers and were a reason behind the market’s ill fortunes. Foreign selling was recorded at a net of $30 million worth of equity, following up on the $24 million net selling in the previous week.
As the nation mourned the loss of so many lives in the Peshawar attacks, some positives emerged in the form of the Pakistan Tehreek-e-Insaf calling off its nationwide protests and stood united with the government in its resolve to rid the country of terrorism. The easing of political tensions was welcomed by the market and reflected in the recovery towards the end of the week.
During the week, the board of the International Monetary Fund also approved the disbursement of $1.05 billion to the country which will result in a huge improvement in the country’s foreign exchange reserves situation and also stem the decline of the rupee against the US dollar.
The government also announced a reduction in electricity tariff by Rs2.32 per KWh during the week, which will provide a boost to the country’s industries. Furthermore, the declining tariff along with the falling prices of POL products will result in lower inflation moving forward and is highly likely to result in a significant discount rate cut in the State Bank’s monetary policy announcement in January.
Average trading volumes continue to fall and were down 15% at 203 million shares traded per day. Similarly average daily values also fell 5% clocking in at Rs12 billion daily. The Karachi Stock Exchange’s market capitalisation stood at Rs7.09 trillion ($70.5 billion) at the end of the week.
Winners of the week
Shifa Int Hospitals Ltd
Shifa International Hospitals Limited establishes and runs medical centres and hospitals in Pakistan. The company’s clinical services include medicine, paediatrics, surgical, obstetric and gynaecology, dentistry, rehabilitation services and ophthalmology. Shifa also provides diagnostic services including specialised diagnostics, radiology and clinical laboratory.
Sui Northern Gas Pipelines
Sui Northern Gas Pipelines Limited purchases, purifies, transmits, distributes, and supplies natural gas, in addition to marketing Liquefied Petroleum Gas.
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 in Sindh.
Losers of the week
Grays Of Cambridge
Grays of Cambridge (Pakistan) Limited is a holding company. The company, through its subsidiaries, manufactures and exports sporting goods, specialising in hockey sticks.
Mari Gas
Mari Gas Company Limited specialises in the drilling, production and selling of natural gas.
National Foods
National Foods Limited is a diversified food manufacturer. The Group’s products include recipe blends, dehydrated vegetables, pickles, salts, snack foods, desserts, and a number of kinds of health foods.
Published in The Express Tribune, December 21st, 2014.