February Review

The index managed a 72pt gain in February to close at 31370. Activity during the month was a rough ride with a 2141pt spread between the highest and the lowest close. Till Feb 8 the index rose 1400pts, falling 2100pts in back to back sessions save one, only to scrape an 800pt gain in the last four sessions of the month. Average turnover for the month was 136mln shares while value traded was Rs7.2bln, almost level with last month.

POL, JSCL and SNGP were the major winners among actively traded stocks notching gains of 18, 24 and 12pc.

Losers were SSGC, GHNL, Amreli Steel, Al Shaheer, Nishat Chunian, Indus Motors, PRL, Netsol, PAEL and FEROZ losing between 10-18pc.

Banks gained across the board this month. Fertilizers, IPP's and Refiners lost value. Even the cement sector saw some losses with Cherat and Kohat down by 7pc.

Overall despite the benign index net change for the month, February masked significant decline especially traders favorites like TRG, PAEL, ASTL, PIBTL, MUGHAL.

February also marked the end of the earnings season. Most annoucements were in line with market expectations and perhaps that's why sentiment was subdued.

Outflow during the month was USD 40mln, down from USD50mln during January. Crude oil prices could offer support to the index should they continue the recent uptrend. Progress toward emerging market status could tune down debilitating foreign outflows.