Market Daily: PSX extend gains for second consecutive week  

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LAHORE: For the second consecutive week, indices at Pakistan Stock Exchange (PSX) returned around 2 per cent to investors, where four out of five sessions closed positive. Investor’s confidence improved in the market post-finalisation of caretaker PM in a smooth way.

Later, ease down in global political noise (especially Italy crisis) further garnered investors sentiments, and helped market to close at 42,913 index level, gaining 839 points in a week. To note, macro concern is still dampening on investors sentiments.

Attock Refinery (ATRL) and National Refinery (NRL) remained among top performers during the week, where both gained around 24 per cent and 17 per cent respectively in their values amid attractive valuation and restoration of FO supplies to power plants in Pakistan.

Searle Pakistan (SEARL) gained around 12 per cent during the week, as news was floating in the market regarding build-up of position by Milan based asset manager in SEARL.

Foreigners were net sellers during the week amounting to $17.5 million against the net selling of $26.1 million last week. On the other hand, amongst local investors Banks were net sellers of $4.7 million whereas insurance was net buyer of $30.4 million.

Market participation for the KSE 100 index declined to 38.55 million shares (-61 per cent on d/d basis). Major contribution to total market volume came from DCR (-0.98 per cent), PAEL (-1.46 per cent) and TRG (-0.17 per cent) churning 19.71 million shares out of the All Share volume of 59.20 million shares. Daily traded value for the KSE 100 index decreased to $21.97 million from $60.08 million in the previous session (-63.4 per cent on d/d basis); UBL ($2.49 million), ATRL ($2.39 million) and SEARL ($1.74 million) were among top contributors from traded value perspective.

Major contribution to the KSE 100 index upside came from HBL (+1 per cent), SEARL (+4.79 per cent), COLG (+5 per cent), MCB (+0.72 per cent) and BAHL (+1.07 per cent) adding 88 points. On the flip side, OGDC (-1.99 per cent), ENGRO (-1.38 per cent) and HUBC (-1.48 per cent) took away 88 points. The KSE 100 index is 14 per cent above its 52-week low of 37,736.73 reached on December 12, 2017 and 15 per cent below its 52-week high of 50,645.33 touched on June 1, 2017.

Moreover, Pakistan Petroleum Limited (PPL) notified exchange regarding an extension for further one year w.e.f from May 31, 2018.

Bestway Cement (BWCL) notified exchange that, company’s new line of clinker (6000 tpd) has successfully commenced operations.

The strengthening of the dollar amid Federal Reserve interest rate hikes has sharpened pressure on some emerging economies as investors steer funds to the United States. Funds dedicated to emerging economy equity and debt saw withdrawals of $569 million and $253 million during the week of May 23, according to data firm EPFR Global. That is on top of the $1.6 billion and $2.1 billion taken from the same funds during the week ending May 9.

Technically speaking, the KSE 100 index staged a dull session and closed just shy of 20EMA (42,979). Next major resistance is previous week’s high (43,060). Immediate support is 41,872 (intraweek low) and 41,458 (intraday low from May 18).