LAHORE: It was a nervous session at the Pakistan Stock Exchange (PSX) on Thursday where indices traded within a narrow range though volumes increased further. Foreign investors after three sessions of buying were net sellers. They offloaded equities worth a net of $3.34 million. Majority of the selling was seen in the commercial bank sector.
The KSE 100 index swung between a thin band of 142.89 points gaining 101.84 points and losing 41.05 points before closing higher by 87.35 points at 43,495.07. The KMI 30 index touched an intraday high of 74,024.81 and ended with a 143.12 points rise at 73,996.73. The KSE All Share Index clinched 103.90 points to conclude at 31,680.83 with 194 advancers and 153 decliners.
The market volumes touched 220.44 million with Lotte Chemical Pakistan Limited (LOTCHEM +3.89 per cent) in lead again. The script had 34.70 million shares exchanged. Nimir Resins Limited (NRSL +10.51 per cent) was next with volume of 13.50 million and Fauji Foods Limited (FFL +1.59 per cent) with 11.47 million.
Market turnover was mostly confined to Materials (25.7 per cent of total turnover – down 41.9 per cent on d/d basis), Energy (23.7 per cent of total turnover – up 16.6 per cent on d/d basis) and Financials (17.5 per cent of turnover – down 55.9 per cent on d/d basis). Within Materials, FFC (-0.36 per cent) and ASTL (-0.41 per cent) witnessed significant jump in market participation along with decline in turnover for EFERT (+1.03 per cent), ENGRO (+0.41 per cent), DGKC (+0.10 per cent) and LUCK (-0.71 per cent). Energy stocks saw renewed activity after IEA suggested that slide in oil production could significantly exacerbate a global supply deficit later this year. Subsequently, turnover in POL (9.75 per cent of total turnover – up 60.4 per cent on d/d basis) and OGDC (5.34 per cent of total turnover – up 50.3 per cent on d/d basis) jumped amid renewed appetite for Energy plays.
Industrials (+0.82 per cent), Consumer Staples (+0.65 per cent) and Energy (+0.56 per cent) contributed towards a buoyant close with major contribution to upside coming from PIBTL (+6.12 per cent), PAKT (+2.14 per cent), COLG (+1.58 per cent), EFOODS (+0.37 per cent), POL (+1.13 per cent), OGDC (+0.61 per cent) and PPL (+0.45 per cent). E&P came into limelight due to a scheduled hearing at Islamabad High Court pertaining to imposition of ‘windfall levy’ on discovery of oil and condensate deposits from Tal Block. On the flip side, Materials dragged the index down with LUCK (-0.71 per cent), FFC (-0.47 per cent), CHCC (-1.70 per cent), INIL (-1.03 per cent) and FFBL (-1.02 per cent) closing in red.
Market participation for the 100 Index declined to 39.44 million shares (-16.5 per cent on d/d basis). Major contribution to total market volume came from LOTCHEM (+3.89 per cent), NRSL (+10.51 per cent) and FFL (+2.62 per cent) churning 59.67 million shares out of the All Share volume of 220.44mn shares. Daily traded value for the 100 Index declined to $23.78 million from $33.94 million in the previous session (-29.9 per cent on d/d basis); LOTCHEM ($3.16 million), FFL ($3.01 million) and UNITY ($2.60 million) were among top contributors from traded value perspective. Major contribution to the 100 Index upside came from HBL (+1.13 per cent), PIBTL (+6.12 per cent), POL (+1.13 per cent), OGDC (+0.61 per cent) and PAKT (+2.14 per cent) adding 92 points. On the flip side, UBL (-1.23 per cent) and LUCK (-0.71 per cent) took away 36 points. The 100 index is 15 per cent above its 52-week low of 37,736.73 reached on December 12, 2017 and 18 per cent below its 52-week high of 53,127.24 touched on May 25, 2017.
In a notice to the exchange Hub Power Company Limited (HUBC +0.05 per cent) announced signing of Shareholders’ Agreement with Fauji Fertiliser Company Limited (FFC -0.47 per cent) and China Machinery Engineering Corporation (CMEC) for equity injection into Thar Energy Limited (TEL).
The principal activity of Thar Power Limited, a subsidiary of HUBC, is to develop, own, operate and maintain a 330 MW mine-mouth coal fired power plant to be established at Thar Block II, Thar Coal Mine, Sindh. On March 15, 2017, HUBC announced intend to divest 40 per cent shares to FFC. After signing of the agreement HUBC holds 60 per cent, FFC 30 per cent and CMEC 10 per cent. CMEC has already started construction activities on site to achieve its target of Commercial Operation Date by mid of 2020.
Philip Morris Pakistan Limited (PMPK 0.00 per cent) declared financials for the year ended December 31, 2017. The company reported a 1.74 per cent negative growth in sales which amounted to Rs 13.97 billion while the net profit dropped 67 per cent.
