The market closed up sharply higher today by 700+pts on the back of receding pessimism about the fallout from brexit, in line with regional markets. This coupled with a recovery in crude oil prices, hike in cement prices helped sentiment, even though turnover remained on he lower side. The Index has so far recovered about 700pts from a 1700pts decline from highest closing earlier this month.
Today's Market saw healthy gains in OMC's, Refiners, Banks, Cements and E&P's. Price movement was pretty broad-based across sectors. Investors are likely to watch foreign flows for cues on further movement.
The market closed down 350pts on turnover of 163mln shares with Rs 7.8bln value traded. Value traded took a dip mainly because of small cap stocks dominating volume charts. KEL accounted for almost 30pc of today's turnover. Banks were the hardest hit today with MCB, HBL and UBL contributing a hefty -170pts. Taken together 8 companies, NML, FFC, OGDC, UBL, LUCK, HBL, MCB and FEROZ 1888 accounted for 340pts loss.
Foreigners were bet sellers to the tune of USD4mln while locals were buyers of the same amount.
Softer crude prices coupled with Eid holidays and June closing could keep the market under pressure with narrow participation.
The market ended the week down 1387pts to close at 37390, -4pc, following a sharp sell-off on Friday, after Britain voted to leave the EU, in a shock referendum. This is the biggest weekly drop since mid Jan 2016. Volatility is likely to continue, with world markets sharply lower. The prospect of emerging market pressure is very real though Pakistan may be cushioned from the impact of the recent inclusion in the MSCI EM Index.
AKZO was the top performer during the week picking up 18pc. NRL was up 10pc. FCCL and FATIMA finished the week marginally higher.
Banks were the worst hit stocks this week with UBL, HBL, MCB and BAFL losing 5-10pc. Oil and cement also lost momentum during the week. NML lost 8pc.
The market closed up 90pts primarily on the back of gains in MCB, HBL and UBL. The market has been lackluster this week with thin Activity, down around 35pc compared to last week. Rollover week for future contracts could explain some of the weakness in sentiment as well. Going forward we expect better performance, heading into earnings season in July.
Search Market View