The KSE100 closed another week in the red, ending down 526pts(-1.1pc), to close at 46332. During the week the market made a low of -1944pts, recovering 1418pts on the last two days of the week, ahead of long Eid vacations. To date the index is still 1500pts down for the year 2017. Sharp fall opened up values which set up a decent pullback. Investors scooped up blue chips at lower levels. At one point the market was down 15pc from its peak in May 2017. Net inflow of USD9.1mln helped the market recover losses. Last week saw net outflow of USD9.5mln.
Turnover during the week averaged 274mln shares, up 7.5pc. Value traded was Rs12.9bln, up 20pc.
Steel sector notched the best performance this week. Cements also bounced back nicely. Banks gained marginally while oil stocks suffered from renewed crude oil weakness.
NML and AKBL were standout performances during week, among actively traded scrips. NML gained after it got approval to set up automobile assembly plant. TRG, AVN, ASL and BOP were the worst hit.
Top decliners were UPFP, HINO, PSEL, GHNI, FEROZ, NATF and PKGS.
We expect volatility to persist, pending resolution of JIT investigation against the PM's family.
The market closed down 1679pts(-3.6pc) at 44914, the lowest level since Dec 8 2016. The past consecutive nine sessions have shaved 5249pts from the KSE 100. Foreign outflow, ongoing JIT investigation in the ruling family's finances, lack of positive triggers, end of month roll over pressure and upcoming market closure over Eid has turned into a perfect bearish storm.
Major scrips ended the day at lower lock.
We expect support to kick in at lower levels as earnings season commences in July.
The market closed the week down 2669pts to close at the lowest level for 2017, at 46858. The last low was hit right before the Panama verdict announcement in mid April. Turnover for the week averaged at 255mln shares while value traded was Rs10.7bln. Turnover was up 6.7pc while value was down 9pc. Since peaking in May, the KSE100 is down a whopping 6000pts or 11pc. 4600pts have come off since May 31, 2017, after the inclusion of Pakistan in MSCI EM. Turnover was weak on the last trading day of the week with only 128mln shares changing hands. This is a 60 day low.
The ongoing investigation against the PM in the Panama case has created political uncertainty which the market abhors. Additionally, incoming flows on MSCI EM inclusion have been offset by outflows creating doubled down bearish sentiment, as the market takes a rough tumble.
Oil stocks had a bad week, with crude prices weakening further as the oil glut shows no sign of responding to OPEC supply restrictions. Prices fell accross the board with all major sectors teetering.
Going forward, we expect volatility, with the market moving both ways as sentiment regarding the outcome of the JIT shifts, and possible entry by foreign funds as the market has shaved off almost 9pc of value since May 31, 2017. Outflow this week was USD9.5mln.
The KSE100 skidded 1855pts (-3.75pc) to close at 47672, 135pts below its open for 2017, on the JIT summons received by the PM . Just before the Supreme Court announced its verdict the market hit a minimum close of 46874 and a low of 46050. JIT jitters have hit the market hard as has feeble interest in PSX book building.
Major stocks hit lower locks. EENGRO, ISL, SNGP, DGKC, NML, ATRL, PSO, ICI, OGDC, PAEL, FCCL, MLCF, EFERT, HUBC, SSGC close almost 5pc down.
Given political uncertainty, further weakness cannot be ruled out. However we would like to highlight the possibility of support at lower levels by foreign funds. Last weeks net inflow was USD14mln.
The KSE100 closed up 972pts(2pc) at 49527. Gains during the week, following a mammoth selloff last week, were pared, led by heightened political concerns over the JIT against PM Nawaz, a dearth of positive triggers and a less than expected interest in book building of PSX shares. Turnover averaged 207mln shares while value traded was Rs8.17bln. Both were down 23pc and 30pc respectively.
Top items by value traded were ISL, SNGP, HBL, EPCL and PAEL while top items by volume were POWERR, BOPR2, EPCL, DSL and DFSM.
Top performer during the week was EPCL up a solid 17.5pc, followed by DSL, DFML, ANL and STPL.
DFSM was the worst performer losing 30pc.
Going forward we see the market consolidate at these levels in the absence of positive triggers.
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