Tuesday, November 19, 2019

Weekly review: KSE-100 turns red after five-week winning streaks

Featured

Trump said: Sondland is great American now President’s famous ‘U-turn’

President Donald Trump has a history of distancing himself from associates who have found themselves in legal trouble or...

Babri mosque: Indian Supreme Court ruled in favor of Hindus in a dispute over a religious position with Muslims

India's Supreme Court on Saturday ruled in favor of a Hindu group in a long-running legal battle over a...

France Visa: New point-based skilled immigrant program to be enforced by summer 2020

France will introduce new point-based skilled immigrant program (France Visa), will come to force by summer 2020. French government...
Zain Zubair
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]
The benchmark KSE-100 closed at 40,887pts, down by 225pts or 0.55% WoW. Week trading commenced on a positive note and the market gained over 502pts on Monday as China came to Pakistan’s rescue and agreed to provide a loan of USD 2.5bn to support depleting foreign exchange reserves.

Whereas other news flows regarding GIDC settlement and issuance of directives by SBP for overseas investors to invest in Pakistan Banao Certificate also fueled investor’s sentiment.

 

However, down gradation of Pakistan’s long term credit rating from B to B- by S&P coupled with pressure on international oil prices dented investors sentiments.

Contribution to the downside was led by Commercial Banks (-185pts) due to selling from mutual funds and insurance companies, Oil and Gas Exploration Companies (-83pts) due to decline in international oil price, Oil and Gas Marketing Companies (-52pts), Tobacco (-33pts), and Chemicals (-25pts).

Scrip wise major losers were HBL (-79pts), UBL (-47pts), DAWH (-41pts), PPL (-41pts) and OGDC (-36pts). While, sectors that contributed positively to the index were Cement (+106pts) amid correction in international coal price by 4% WoW to USD 86/ton, Automobile Assembler (+28pts) and Pharmaceuticals (+20pts).

Foreign buying continued this week clocking-in at USD 12.2mn compared to a net buy of USD 12.3mn last week.

Major buying was witnessed in Commercial Banks (USD 4.7mn) and Fertilizer (USD 2.7mn). On the local front, selling was reported by Mutual funds USD 22.6mn followed by other organizations (USD 1.1mn). That said, average daily volumes for the outgoing week were up by 10% to 192mn shares likewise value traded jumped by 26% to USD 62mn.

Other major news China comes to Pakistan’s rescue with USD 2.5b loan, SBP issues directives for investment in Pakistan Banao Certificates, Pakistan signs USD 10bn gas pipeline agreement with Russia, GIDC reduction to provide industries PKR 50bn relief, Sehat Insaf Card: Free health facility for 80mn people, and Forex reserves rise to USD 14.89bn.

 

Read More: China agrees to park $ 2.5 billion in Pakistan’s foreign exchange reserves

 

Analysts at Arif Habib Limited expects the market to remain range bound given no material event expected in upcoming week, however, visit of Saudi crown prince expected on 16th Feb’19 may uncover investment for construction of an oil refinery in Pakistan and other ventures.

 

In addition, the Prime Minister of Pakistan is visiting UAE on 10th Feb’19 to attend World Government Summit where he will encourage foreigners to invest in different sectors in Pakistan. The KSE-100 is currently trading at a PER of 7.9x (2019) compared to Asia Pac regional average of 12.0x while offering a dividend yield of ~7.0% versus ~2.6% offered by the region.

Read More: Weekly review: KSE-100 index soars 848 points to 41K on govt measures

Zain Zubair
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]

Latest News

China warns United States against flexing muscles in South China Sea

Chinese defense officials on Monday warned their US counterparts against "flexing muscles" in the disputed South China Sea after...

Chile: President Pinera condemns police abuses in dealing with protesters

Chile: President Sebastian Pinera condemned the police abuses for the first time after four weeks of continuing demonstrations and clashes that rocked the country,...

White House: Donald Trump and Jerome Powell meet to discuss economy

President Donald Trump and Reserve Chairman Jerome Powell met at the White House Monday morning to discuss "economic growth, employment and inflation", the Federal...

Elon Musk chose Germany for big announcement

Elon Musk 's been a hell of a guy. As he comes out at an event in Berlin ado said he wanted to build...

Emirates brings Airbus $16 billion order

United Arab airline Emirates has finalized new deal with the European aircraft manufacturer Airbus, a major contract logged into the system to buy the...
- Advertisement -

Related News