KARACHI: It was a week of ups and downs for the Pakistan Stock Exchange as despite a positive momentum in the beginning, the market’s pace slowed down later and it closed at 39,152 points, down 0.1% week-on-week, after recording a robust bull-run in the previous two weeks.
The week began with selected stocks leading the way, however, very soon investor interest started to fade away. Apart from a slight rebound on Thursday, the market largely remained in the negative.
Oil and gas marketing stocks dominated the index as the sector rose 3.5% alongside autos that gained 3.4% on account of weakening yen and power generation and distribution companies that rose 1.8%.
The week started with stocks of gas distribution companies posting gains on expectations of a tariff hike.
News that the government had withdrawn the regulatory duty exemption from semi-finished products of iron or non-alloy steel was also taken as a big positive by the market, prompting steel stocks, notably Mughal Steel and Amreli Steel, to post handsome gains.
Additionally, cement stocks continued their upward march on the back of a healthy demand outlook and strong year-end result expectations.
On the contrary, tobacco and fertiliser sectors were down 5.3% and 1.2% respectively. Commercial banks remained flat over the course of the week.
After rallying over the MSCI emerging market excitement last week, profit-taking was witnessed in Habib Bank and Engro Corporation that along with Dawood Hercules – Engro’s parent company – erased 140 points off the benchmark index.
However, the index drew support from Lucky Cement where the projects nearing financial close started to play out, contributing 43 points. Pakistan State Oil (PSO) contributed 35 points over earnings excitement.
Lucky Cement, PSO, National Bank of Pakistan, Hubco and Pakistan Services Limited cumulatively offset the decline by adding 152 points.
Among market-moving news was the flow of remittances that stood at $19.9 billion for 2015-16, reflecting a growth of 6.4% year-on-year. Trade deficit increased significantly by 29% month-on-month to $2.8 billion and foreign direct investment rose 39% to $1.281 billion for the first 11 months of FY16.
Foreigners turned net sellers, offloading shares worth $11.5 million in the outgoing week.
Average daily volumes showed a 7% rise, standing at 207.1 million shares whereas average daily values fell 8% to Rs13.2 billion or $125.7 million.
Winners of the week
Lalpir Power Limited
Lalpir Power Limited was incorporated in Pakistan in 1994. The principal activities of the company are to own, operate and maintain an oil-fired power station having gross capacity of 362MW in Mehmood Kot, Muzaffargarh, Punjab.
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.
Nishat (Chunian) Limited
Nishat Chunian Limited manufactures and sells yarn and fabric. The company operates spinning, weaving, dyeing, and finishing units.
Losers of the week
Ibrahim Fibres
Ibrahim Fibres Limited, a part of the Ibrahim Group, operates a polyester staple fiber manufacturing plant. The company manufactures a wide range of polyester staple fiber and it also manufactures a variety of blended as well as pure synthetic yarns. Ibrahim Fibres also owns an in-house power generation plant.
Fauji Fertilizer Bin Qasim
Fauji Fertilizer Bin Qasim Limited manufactures, purchases, and markets fertilisers. The company produces Granular Urea and DAP. Fauji Fertilizer provides its products to farmers in Pakistan.
Feroze1888
Feroze 1888 Mills Ltd manufactures and sells a wide range of cotton towels and fabrics.
Published in The Express Tribune, July 24th, 2016.
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