LAHORE: On its last trading day of the week, the KSE 100 index witnessed a range bound session amid significant drop in investor activity. The KSE 100 index volume and turnover went down 33 per cent and 24.4 per cent respectively on day over day basis.
Turnover for the KSE 100 index declined across all sectors barring utilities, consumer discretionary and health care. Yet, materials (down 36.4 per cent, day on day basis), industrials (down 34.5 per cent, day on day basis) and financials (down 2.5 per cent, day on day basis) stood out as the most active sectors.
The day ended amid sharp increase in market volatility as investor outlook remain divided on the latest monetary policy statement. According to 15 out of 24 economists surveyed, State Bank of Pakistan was expected to raise key policy rate by 25 basis points to 6.25 per cent, however decided not to. Six economists expected a 50bps hike while 3 were of the view that SBP will hold the rate at 6 per cent.
The day ended on a flattish note with the KSE 100 index closing up 70.68 points (+0.16 per cent) at 45,560.30, fresh CY18 high.
Trading activity in retail favourites remained high with KEL (+0.29 per cent), TRG (-4.82 per cent) and EPCL (+3.85 per cent) topping the volume charts. KEL traded sideways despite expectations that CCoP may provide the necessary approvals needed to clear the deal between Abraaj and Shanghai Electric.
TRG continued its journey due south after IBEX Holdings failed to initiate its IPO on NASDAQ. EPCL continued its northbound journey following the announcement of its inclusion in the KSEKSE 100 index and ENGRO willing to invest up to Rs3 billion along with Rs1.8 billion in the polymer unit. Health Care (+1.13 per cent) gave maximum support to the KSE 100 index amid market rumors that DRAP has cancelled manufacturing licenses of 13 pharmaceuticals companies due to substandard and unregistered products. Additional support came from financials (+0.82 per cent) and consumer discretionary (+0.64 per cent) on the back of gains seen in HBL (+1.94 per cent), UBL (+1.49 per cent) and KTML (+5 per cent).
Market participation for the KSE 100 index declined to 109.22 million shares (-33.01 per cent, day on day basis). Major contribution to total market volume came from KEL (+0.29 per cent), TRG (-4.82 per cent) and EPCL (+3.85 per cent) churning 68.12 million shares out of the All Share volume of 230.34 million shares. Daily traded value for the KSE 100 index declined to $50.42 million from $71.42 million in the previous session (-24.3 per cent, day on day basis); TRG ($7.09 million), EPCL ($6.72 million) and LUCK ($3.85 million) were among top contributors from traded value perspective.
Major contribution to the KSE 100 index upside came from HBL (+1.94 per cent), UBL (+1.49 per cent), KTML (+5 per cent), PKGS (+3.5 per cent) and ICI (+4.99 per cent) adding 134 points. On the flip side, PAKT (-4.64 per cent), TRG (-4.82 per cent) and MCB (-0.89 per cent) took away 60 points. The KSE 100 index is 21 per cent above its 52-week low of 37,736.73 reached on December 12, 2017 and 14 per cent below its 52-week high of 53,127.24 touched on May 25, 2017.
For the outgoing week, the KSE 100 index gained 530.08 points (+1.18 per cent) with contribution to upside coming from UBL (+5.37 per cent), FFC (+6.56 per cent) and LUCK (+4.25 per cent) adding 270 points. In the outgoing month, the KSE 100 index gained 2,320.86 points (+5.37 per cent) with maximum contribution to upside coming from UBL (+13.01 per cent), LUCK (+14.79 per cent) and BAHL (+19.15 per cent) adding 675 points. The quarter ended with the KSE 100 index gaining 5,088.82 points (+12.57 per cent) with maximum gain to upside coming from HBL (+26.97 per cent), LUCK (+33.28 per cent) and BAHL (+38.83 per cent) adding 1,474 points.
Technically, the KSE 100 index extended gains from the previous session and closed at a new CY18 high of 45,560.30. Next target is 47,100. Immediate support is 44,785 (weekly low) and 44,361 (20 EMA).
