Market Daily: Indices make a comeback, gain 484 points

LAHORE: The Pakistan Stock Exchange (PSX) build upon last sessions momentum after an early dip. The market witnessed a buying spell after some clarity over the caretaker setup and the schedule of general elections. Foreign investors were net buyers, at last, and the market posted return of 1.15 per cent or 484 points in a single day, closing at 42,623 index level.

Historical data suggests that Pakistani equities post an average return of 17 per cent based on the last 4-caretaker setups since 1993. To note, interim setup in Pakistan will begin from June 1, 2018.

Volume and turnover for the KSE 100 index came down (-20.8 per cent and -21.5 per cent on day on day basis) as concerns emanating from the recent surge in foreign selling forced market participants to stick to sidelines.

Materials (33.54 per cent of total turnover) dominated the trading activity amid heavy participation in DGKC (7.4 per cent of total turnover) and FFC (7.1 per cent of total turnover). Industrials (19.1 per cent of total turnover) and financials (16.6 per cent of total turnover) remained on investor radar amid stock specific investor appetite.

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Performance came amid heavy support from consumer discretionary (+1.41 per cent), materials (+1.36 per cent), financials (1.35 per cent) and utilities (+1.24 per cent) with major push coming from NML (+4.07 per cent), KTML (+2.78 per cent), LUCK (+2.43 per cent), ENGRO (+1.01 per cent), DGKC (+2.84 per cent), FFBL (+4.68 per cent), EFERT (+1.25 per cent), HBL (+2.09 per cent), MCB (+2.70 per cent) and SNGP (+2.59 per cent).

Market participation for the KSE 100 index declined to 67.53 million shares (-20.8 per cent on day on day basis). Major contribution to total market volume came from TRG (+3.71 per cent), PAEL (+5 per cent) and LOTCHEM (+6.09 per cent) churning 27.77 million shares out of the All Share volume of 120.30 million shares. Daily traded value for the KSE 100 index declined to $35.16 million from $44.76 million in the previous session (-21.5 per cent on day on day basis); UBL ($3.30 million), PAEL ($3.20 million) and TRG ($2.64 million) were among top contributors from traded value perspective. Major contribution to the KSE 100 index upside came from HBL (+2.09 per cent), OGDC (+2.29 per cent), MCB (+2.70 per cent), LUCK (+2.43 per cent) and PSO (+3.35 per cent) adding 210 points.

On the flip side, PPL (-0.56 per cent) and POL (-0.79 per cent) took away 23 points. KSE 100 index is 13 per cent above its 52-week low of 37,736.73 reached on December 12, 2017, and 19 per cent below its 52-week high of 52,874.63 touched on May 26, 2017.

Avenceon (AVN) notified exchange regarding its two new projects by Pakistan Petroleum (PPL) valuing around Rs75 million with a delivery period of 5-6 months.

HINO announced its yearly financial results for 2018, where company EPS of Rs93, up by 3 per cent YoY due to rise in both revenues and other income by 18 per cent YoY each.

Pakistan’s economy may have soared with a growth of 6 per cent, a record high in 13 years, but that statistic provides a deceptive picture of the financial mess that Pakistan may see itself stuck in. According to disclosures by officials and the finance ministry data reviewed by Reuters, lending to Pakistan by China and its banks is on track to hit $5 billion in the fiscal year ending in June.

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