Monday , 21 August 2017
Home / Business News / Stocks’ weekly gain shrinks to 50 points

Stocks’ weekly gain shrinks to 50 points

KARACHI: The 13-day bull run on the stock market that saw the index peak to a new all-time high of 47,201 points continued for first two days during the outgoing week, but came to a halt mid-week.

Brokers, analysts and investors cited various reasons for the downtrend, including consolidation, correction, breather and profit-booking. During the week, Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index lost 50 points (0.60pc) and closed at 46,634.

The top three gaining sectors during the outgoing week remained tobacco, insurance and commercial banks, which were up 6.3pc, 2.6pc and 2pc, respectively, dealers at Topline Securities said.

They identified top losers during the week as pharmaceuticals, oil and gas exploration companies and cements, which declined by 4.2pc, 1.6pc and 1.4pc, respectively.

Other analysts said sectors that came under the spotlight during the week included commercial banks which lost 259 points, insurance 39 points and tobacco 26 points.

Investor interest continued in small-value stocks as evident from a 6pc week-on-week decline in average daily turnover to 337 million shares against 13pc fall in average daily traded value to Rs17.2 billion.

Selling from foreigners continued with net Foreign Investors Portfolio Investment outflow of $45.6m in the outgoing week and $126.6m in December, BMA Capital said. Major outflow was seen in banks ($18.6m), cements ($5.9m) and all other sectors ($10.6m).

Foreign sell-off was absorbed by mutual funds and individuals who bought stocks worth $21m and 19.7m net.

According to AKD Securities, major gainers during the week included Habib Metropolitan Bank which gained 14.46pc during the week, Engro Polymer 13.9pc, Adamjee Insurance 13.15pc, Pak Suzuki 8.65pc and Allied Bank 7.29pc. Laggards during the week were Meezan Bank which fell 9.53pc week-on-week, Lotte Chemical 5.52pc, Sui Southern Gas Company 5.51pc, Hascol Petroleum 5.21pc and Amreli Steels 4.8pc.

Key event during the week was completion of bidding process for sale of 40pc PSX stake, where a Chinese-led consortium emerged as the highest bidder.

Other major news during the week were: Prime Minister Nawaz Sharif brought five key regulatory bodies — including the Oil and Gas Regulatory Authority and National Electric Power Regulatory Authority — under the administrative control of relevant divisions/ministries; the current account for November clocked in at a hefty $839m against $381m in October, taking the July-November deficit to $2.6bn, a year-on-year increase of 91pc.

OUTLOOK: The PSX divestment was seen as a positive trigger for the long run. For the upcoming week, a slight consolidation was expected given the commencement of rollover week and profit-taking, analysts at Arif Habib Securities said. “Market may stay range-bound, but recovery in volumes may be witnessed.”

AHL Research reiterated its bullish stance on the market with key fundamentals intact. According to BMA Research, direction of the market was expected to remain range-bound in the short term. “Moreover, foreign participation is expected to remain subdued owing to Christmas holidays next week,” they said.

Activity is likely to be focused in select sectors in the coming days. “Textiles might attract attention if the much-awaited textile package is released next week,” analysts said.

courtesy : dawn news



Show Buttons
Hide Buttons