Saturday, September 21, 2019
No menu items!
Advertisement

KSE weekly review: Market sheds 448 points, likely to remain range bound

Featured

Shinzo Abe reshuffles Japanese Cabinet, Shinjiro Koizumi appointed as environment minister

Japan's Prime Minister Shinzo Abe appoints foreign ministers and new defense ministers, in addition to elevating rising political figures,...

Saudi Arabia wants uranium enrichment for its nuclear program

Saudi Arabia wants uranium enrichment for its nuclear program, the energy minister said on Monday, adding that it may...

Trump’s decision has left Afghanistan on the verge of bloody lead in National elections

US President Donald Trump's decision to cancel talks with the Taliban, at least for the time being, has left...
Avatar
Zain Zubair
Zain Zubair is a staff writer for World News Observer. He is studying ACCA in Pakistan. Besides Accountancy and writing pieces, he loves cooking and nature photography. Zain has attended various modern journalism workshops. Contact: [email protected]

Weakness of the Pak Rupee against USD, unchanged Fitch’s rating and ongoing debate over the Federal Budget FY20 in the Parliament kept the domestic bourse in-check this week. Given lack of triggers and profit taking in large caps, the KSE-100 index closed down by 448pts (1.26% WoW) to 35,125.

Negative sector-wise contributions came from Commercial Banks (181 pts), Fertilizer (88pts),  Cement (49pts), Oil & Gas Marketing Companies (42pts), and Pharmaceuticals (29pts).

Whereas, sectors that contributed positively include Power Generation & Distribution (38pts) and E&P (31pts).

Scrip-wise negative contributions came from FFC (62pts), BAHL (43pts), PPL (38pts), LUCK (31pts) and KAPCO (31pts).

Whereas, positive scrip-wise contributions came from HUBC (83pts), OGDC (54pts), and POL (37pts).

Foreign selling was continued this week clocking-in at USD 5.7mn compared to a net sell of USD 4.9mn last week.

Selling was witnessed in Exploration & Production (USD 4.5mn) and Cement (USD 1.4mn).

On the domestic front, major buying was reported by Individuals (USD 7.9mn) and Banks / DFIs (USD 3.7mn).

Average Volumes settled at 125mn shares (down by 8.5% WoW) while value traded clocked-in at USD 27mn (down by 21% WoW).

Other major news:  SBP governor says prior actions taken to secure IMF loan,  FDI plunges 49% in July-May, CAD shrinks 29% in 11 months, Revival of zero-rating not feasible, PM tells textile barons, and Govt to float Rs200b Sukuk next week for slashing circular debt.

Market Outlook

With the State Bank Governor echoing the incumbent governments existing stance of fulfilling IMF’s prior actions, we view the upcoming Board agreement expected in Jul’19 to be a major trigger for the market as it would set in motion a period of economic recovery.

The KSE-100 index is currently trading at a PER of 7.0x (2019) compared to Asia Pac regional average of 14.6x and while offering DY of ~8.2% versus ~2.3% offered by the region.

Read also: SECP, PSX Board accountable for appointing a foreigner as MD of the bourse

Latest News

IMF Staff Concludes Visit to Pakistan

An International Monetary Fund (IMF) mission, led by Ernesto Ramirez Rigo, visited Islamabad and Karachi during September 16–20, 2019...

Whistleblower incriminates the US president

US President Donald Trump comes under pressure for alleged statements in a telephone conversation with a foreign leader. Democratic chairman of the House Intelligence...

Washington shooting: One person killed and 5 wounded in indiscriminate firing

One person was killed and five others were injured by indiscriminate gunfire in the US capital of Washington. REBREAKING¶¶ Gunfire shots heard on the streets of...

Artificial Intelligence can predict El Nino 18 months in advance

Artificial Intelligence achieves feats that we often thought were impossible to achieve. Their ability to analyze data, find patterns, and learn from them is extraordinary. One...

Belgian F-16 crashed near french base, pilot miraculously unhurt despite being trapped in high voltage line

A Belgian F-16 fighter jet has crashed in the city of Morbihan in France, pilot miraculously remain unhurt despite being trapped in high voltage...

Related News