The market closed up 61pts holding the 43000 mark. turnover was 460mln shares while value traded was Rs13.3bln. Gas price reduction for industries was positively received with fertilizer stocks showing uptick. Steel stocks trended upwards as did TREET and LOTCHEM. Strong domestic liquidity is helping strength at the PSX.
The market closed up 676pts this week to close at an all time high of 43000. Turnover was 475mln shares while value traded was Rs15.4bln. So far this month the market has picked up a solid 7.5pc this month, that too in the face of an outflow of USD92mln in November. Outflow for the week was USD36.7mln. Winners this week were textiles in anticipation of a package which will hopefully stimulate sagging exports. ACPL and BWCL did well among cements rising in double digit percentage terms. FFL also performed this week. Oil stocks also supported the index with crude prices rallying during the week in anticipation of an OPEC agreement to cut output. OGDC during the week hits milestone in oil production of 50000 barrels per day.
Saturdays monetary policy annoucement will be keenly watched while the market is like to test further highs next week.
China To Start $35bln CPEC
The market closed up 114pts at 42439 even as outflows continue. Outflow for the day was in excess of USD5mln. Turnover was sharply lower today as was value traded. Turnover was 347mln and value traded was Rs9.5bln. HASCOL, HTL, BWCL, TREET hit uppercap. Despite a runup in crude oil prices, as hopes for a deal on production cuts gathers steam, PPL, OGDC and POL managed 36, 41 and 99th place by value traded. Newsflow regarding a resurgent Pakistani Economy remains upbeat, though investors are likely to focus on volatility on the Panama leaks matter, as well as a new and unpredictable Presidency in the US, which could impact flows to emerging markets.
The market closed down 525pts for the week at 42325. Average turnover this week was 458mln shares down 7pc WoW while value traded was Rs14.1bln down 25pc. The week started off on a weak note with the market declining as the Panama hearings began. The latter part of the week saw greater absorption of foreign outflows by local market players. Foreign outflow during the week clocked in at USD 46mln. This is easily the largest weekly outflow this year. Most of the outflow came in cement, banks and Other Sectors.
During the week Audi announced intention to assemble vehicles in Pakistan by 2018, First shipment via CPEC was inaugurated, Hyatt Hotels intend to set up hotels in Pakistan with Bahria Town, Vitol excercised its right to increase shareholding in HASCOL and the SBP identified some of the challenges faced by the economy, which include low savings and investments and falling exports.
Gainers for the week were HASCOL, EXIDE and LOADS, while INDU, ATLH, BIFO, UBL and HBL were losers.
The market closed level with yesterday, just 7pts up at 42412. Turnover was 496mkn shares and value traded was Rs 15.5bln. A rash of big outflow numbers has dampened sentiment at the exchange even though absorption is quite healthy. So far this week outflow has come in at USD34mln. HASCOL hit uppercap again following yesterday's annoucement of VITOL increasing its stake in the company. Movement is going to depend on quantum and direction of foreign flows.
The market closed down 323pts at 42526, retreating sharply from last week's highs. Turnover was robust at 554mln shares while value traded was Rs 17.6bln. With the Panama hearing tomorrow the market is taking politics to book. Net Foreign outflow of USD6.6mln kept buyers at bay although in recent times, outflows have largely been absorbed by locals. HUBC, UBL, HBL and LUCK and PPL accounted for almost 200pts out of today's 323pt loss. We expect the market to remain choppy at these levels pending some sort of resolution of the Panama issue.
Pakistan opens CPEC
The market rose over a 1000pts this week to close just shy of the 43000 mark at 42849. Avg volumes were 465mln while value traded was RS 18.6bln compared to Rs 16.2 bln last week. During the session it saw an intra day high of 42950. Today's session was volatile with the market opening lower by 200pts before recovering it's losses during the course of the session. The week saw an outflow of USD27mln in sharp contrast to last week's inflow of USD21mln. Outflows were concentrated in Other, Cement and Oil and Gas marketing. Local investors lapped up stocks with news local newsflow proving to be an effective counter to the surprise election of Donald Trump in the US. The early part of the week saw significant volatility with the index crashing to over 700pts before recouping almost all its losses. Positive cement sales numbers encouraged support in cement stocks. KOHC, MLCF, PIOC, DGKC all did well this week. Overall newsflow regarding Pakistan's economy was positive and helped sentiment. The World Bank said Pakistan recorded the highest economic growth in 2016 in eight years and will continue to gather pace by 2018.
At its current clip, we expect the market to test 43000 next week.
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