Karachi, March 18, 2016 (PPI-OT): Index Continues its Upward Trend Led by Oils
Capitalizing upon the surge in market sentiments from the previous week, the benchmark index posted an increase of 1.3% WoW; up by 411pts to close at 33,080.40pts.
Market participants tracked international commodity prices, where the rally in PPL and OGDC oil stocks led to cumulative addition of 100pts to the index. Moreover, value hunting continued during the week where UBL, MCB, and LUCK accreted by +47.6pts, +31.8 and +27.5pts, respectively. However, FATIMA, NESTLE, HUBC, EFERT and FFC partially offset the surge, depleting the index by 111pts.
The fertilizer sector, marred by continuous weak farm economics in the backdrop of weak international prices dragged down the index by 62.75pts where surprised dividend curtailment by FATIMA further aggravated the negative sentiment.
Average daily trading volumes declined by 5% WoW to settle at 167mn compared to 175mn in the previous week, where retail favourites i.e. NIB (potential merger announcement with MCB brought the stock on investor’s radar) , KEL, BOP, TRG and DCL accounted for 41% of overall market volumes.
Foreigners turned net sellers during the outgoing week, offloading USD 11.87mn worth of shares versus net buying of USD 4.12mn in the prior week.
Key news this week
Auto policy to be approved by ECC
Pakistan receives USD751mn foreign direct investment
July-March, 2015-16: 17.1% growth witnessed in provisional collection
Chinese company awarded USD239mn contract to build jetty
USD6.64bn extended arrangement: IMF board to consider 10th review on March 25
This week’s top stories
FFBL: Diversification to Generate Alpha in Long Term
PIOC: Robust Earnings to Unlock Sizable Dividend Yield
FATIMA: Underperformance Unwarranted, Maintain BUY!
Expected announcement of Monetary Policy by the central bank is expected to set the tone where Elixir Securities Limited expects a status-quo.