Weekly review: Index gains 1.3% as clarity emerges
Benchmark index closes during 49,624, profit-taking on Friday embellished gains.
KARACHI: A pointy mid-week liberation meant a KSE-100 Index gained 1.3% week-on-week as clarity emerged on a regulatory crackdown opposite brokerage houses over in-house financing.
After remaining underneath vigour in a prior week, due to several reasons, bonds bounced behind in movement Tuesday onwards before profit-taking embellished gains on Friday. Asset values remained flighty during a initial half of a week with large sell-offs amidst crackdown of regulatory watchdog on some brokerage houses who were allegedly concerned in injustice of in-house financing, rascal and false business practices.
However, a corner press discussion by Securities and Exchange Commission of Pakistan (SECP) and Pakistan Stock Exchange (PSX) directed during pacifying investors’ concerns over crackdown on brokers helped teach confidence.
The marketplace eventually recovered after swell and expansion on a MFS product.
Moreover, news of 6 blue-chip companies – Habib Bank Limited (HBL), Mari Petroleum, Searle Pakistan, Engro Fertilizer, Fauji Cement Company and Nishat Mills Limited – being enclosed in a Financial Times Stock Exchange (FTSE) tellurian equity index serve helped urge marketplace sentiments even further.
HBL (+4.6%) was a pushing force in a index recovery, alone adding 160.6 points to a index as investors cheered strong loan expansion a bank reported in a annual 2016 financial results.
On a zone front, refineries gained 7% week-on-week as Attock Refinery Limited (+9.6%) rallied on a behind of derivation of EURO-II diesel supply to OMC’s, while engineering (+3%) was upheld by CSAP (+13.7%) in hopes of serve line-pipe contracts.
On a flipside, dishes declined 2% as heavyweight Nestlé strew 4.7% week-on-week, while some distinction holding was witnessed in cements (-1%).
Minor grant came in from Sui Northern Gas Pipeline (+9.9%) and Millat Tractors Limited (+8.8%), contributing 51.5/48.1 points, with a former rallying over news of upgradation of tube infrastructure while latter came in limelight over expectation of strong monthly sales.
Average volume traded decreased by 6.4% week-on-week while normal value traded decreased by 1.0% week-on-week.
Foreigners remained net sellers during a week, mopping adult $32.7 million value of shares.
Winners of a week
PICIC Growth Fund
PICIC Growth Fund is a closed-end account purebred in Pakistan. The fund’s design is to beget collateral growth. The account invests in bonds listed during a batch exchange.
Crescent Steel
Crescent Steel Allied Products Limited manufactures steel-lined pipes and multi-layer siren coatings, that are used for water, oil and gas transmission. The association also has a string multiplication that manufactures string yarn.
Indus Dyeing
Indus Dyeing Manufacturing Company Ltd manufactures and sells yarn.
Losers of a week
Feroze1888
Feroze1888 Mills Ltd manufactures and sells a far-reaching operation of string towels and fabrics.
Nishat (Chunian) Limited
Nishat Chunian Limited manufactures and sells chronicle and fabric. The association operates spinning, weaving, dyeing and finishing units.
Shifa Int Hospitals Ltd
Shifa International Hospitals Limited establishes and runs medical centers and hospitals in Pakistan. The company’s clinical services embody medicines, paediatrics, surgical, obstetric and gynaecology, dentistry, reconstruction services and ophthalmology.
Published in The Express Tribune, Mar 5th, 2017.
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Article source: https://tribune.com.pk/story/1346294/weekly-review-index-gains-1-3-clarity-emerges/