LAHORE
It was a good day of trading at the Pakistan Stock Exchange (PSX) as investors saw the index trade positive and end flat. Not to forget the index witnessed its worst fall ever since 2008 just a couple of days back.
Political noise remained upbeat and investors awaited court hearing on July 17, 2017 in hope of some clarity. Memories of the sharp decline in currency valuation last week also remained fresh and the debt burden along with widening trade deficit remained intact. All of these issues kept denting confidence in the market.
The KSE 100 index opened the day gap up gaining 329.11 points before falling into the red again. It dropped by 731.21 points to intraday low of 43,060.98 before it closed flat.
The KMI 30 index also traded on sides, positive 702.62 points and negative 1,474.95 points. The KSE All Share Index landed down 56.06 points with 146 advancers and 182 decliners.
Volumes vanished from the market. Total traded volume clocked at 125.52 million from previous sessions 215.17 million. K-Electric Limited (KEL +1.80pc) was leader again with 19.73 million shares exchanged. TRG Pakistan Limited (TRG -1.52pc) was far behind at 8.42 million.
The government has granted permission to four companies to bring Greenfield investment in auto sector and set up new car assembling plants in Pakistan. These include Hyundai Nishat Motors (pvt) limited, KIA Lucky Motors Pakistan Ltd., Regal Automobiles Industries Ltd. and United Motors (pvt) Ltd.
Currently the sector is dominated by Japanese manufacturers, Honda Atlas Cars (Pakistan) Limited (HCAR -3.91pc), Pakistan Suzuki Motors Company Limited (PSMC -2.35pc) and Indus Motor Company Limited (INDU -0.50pc).
The scripts have surged 76.51 per cent, 63.39 per cent and 64.81 per cent respectively over the past one year with per share earnings of HCAR Rs 42.96 (FY17), INDU Rs 145.74 (FY16) and PSMC Rs 33.69 (FY16).
It is certainly not the ideal time to get listed on the exchange, Inbox Business Technologies just boxed their listing plan until market conditions improve but Ittefaq Iron Industries Limited (ITTEFAQ -5.00pc) and Pakistan Stock Exchange Limited (PSX -3.51pc) have taken the hit. PSX depreciated 11.11 per cent in last 5 trading sessions and ITTEFAQ is down to Rs 30.43 close to its debut price of Rs 30.20.
