Another week, another rally – Weekly Review by KASB Research
By: KASB Securities Limited
research@kasb.com
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The index continued its upward drive, rising by 1.3% WoW and closing at 25, 579 points.
Activity increased from last week levels, with average daily turnover surging to 268mn shares, up 27% WoW, whereas US$ value traded increased by 17% WoW. The week saw FIPI net outflow of US$4.3mn.
Soneri Bank, Shifa Int Hospitals Ltd, JS Bank Limited, Pace (Pak) Ltd and Standard Chart. Bank were the major gainers while Mari Gas, Abbot Laboratories, Azgard Nine, Nestle Pakistan and Engro Corporation were the major losers in the benchmark KSE-100 this week.
News This Week
Launch of T-bills, PIBs through bourses
Govt plans to divest 12% stake in UBL and ABL by Mar/Apr-2014
Govt allocates 85mmcfd to textile sector exploit the benefit of GSP+ status
Lucky cement raises cement prices in Karachi; Buy Lucky Cement
IMF, ADB and USAID take up Discos’ sell-off
Market Review
KSE‐100 Index failed to sustain a high of 25,711pts seen on Thursday and but posted another positive closing at 25,579pts on Friday, up 1.3% WoW. Average daily volumes jumped to 268mn shares (27% WoW) while value traded increased to US$96mn (17% WoW). FPI outflow was seen with this week’s number coming in at US$4.3mn.
Banking sector came in the limelight this week due to 1) govt announcement of its plan to divest 12% stake in UBL and ABL via stock exchanges and 2) expectations building up for 50‐100bp increase in discount rate in the upcoming Monetary Policy. In a development late on Friday afternoon, PTCL announced submission of a binding bid for Warid. Cement sector also gained momentum from PRs10‐25/bag increase in cement prices in the South region, with increasing expectation from the North region to follow‐through as temperature will get warmer in Jan‐Feb 2014. Meanwhile, Pakistan Institute of Development Economics, the consultants hired to undertake a study on OMC margins, has proposed an increase in margins (PKR 0.80/sh.) of MS & HSD in the wake of inflationary impact. Meanwhile clarity on textile products given duty free access to EU also propelled performance in the textile sector. Fertilizer sector (mainly FFC) continued to under‐perform the broader market where news flowon gas price hike continues to over‐shadow strong 4Q payouts.
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