KARACHI: As the market moved in sympathy with the news flow,
the KSE-100 index plummeted for the fifth consecutive week recording a
loss of 434 points (1.10 per cent) to settle at 38,646 points.
It
represented the lowest weekly closing in 76 weeks since June 4, 2016.
As the investors chased the stocks to unwind positions or cherry-pick
value scrips, the week saw two bearish and three bullish sessions.
“Market
sentiment cratered under a ‘controlled’ devaluation exercise by the SBP
which saw the rupee lose 4.6pc against the dollar, leading participants
to raise concerns over the knock-on effects on the import bill,
inflation and consumer confidence,” stated AKD Research.
Foreign
investors were net sellers of stocks worth $8.87m during the week with
“Overseas Pakistanis” pulling out almost $4.41m. Foreign selling was
concentrated in commercial banks ($13.1m), other sector ($2.4m), telecom
($2.3m) and cement ($2.0m). Among local participants banks picked up
stocks valued at $11.27m, followed by companies ($10.7m) and mutual
funds ($6.53m). Individuals and brokers stood out as net sellers.
Average
daily volume decreased 4.39pc over the preceding week to 135m shares.
Top 5 volume leaders included: TRG (67.23m shares), KEL (51.39m), PAEL
(36.25m), WTL (30.54m) and ANL (22.81m).
The traded value increased 15pc to $62m depicting considerable activity in main board stocks.
According
to Topline Securities the following stocks were responsible for eroding
255 points from the index: Lucky Cement down 8pc, ISL 11pc, DG Khan
Cement 7pc, The Searle 7pc and UBL 2pc.
Lead gainers were led by PPL up 3pc, Engro Corp 3pc, HBL 2pc, OGDC 1pc and SNGP 5pc, adding 208 points.
Arif Habib Research noted the sector-wise negative contributions came
from cement (215 points), engineering (83 points), OMCs (53 points),
auto assembler (52 points) and pharmaceutical (45 points).
Brokerage
Aba Ali Habib pointed out that the textile sector remained in the
limelight as investors picked up stocks hoping the devaluation would
boost textile exports.
Some key economic news included
Prime Minister Shahid Khaqan Abbasi saying his administration has “no
plans” to weaken the rupee further after the central bank started
devaluing the currency last week.
Trade deficit in
5MFY18 widened to $15.03bn (up 29pc year-on-year) ; workers’ remittances
up 1.3pc to $8.0bn and automobile sales increased 4pc as the year-end
effect kicked in.
OUTLOOK: Market
pundits offered mixed prognosis for the upcoming week. One brokerage
thought that the apex court judgments on two key cases provided win-win
situation to the government and the major opposition party, which could
result in relatively stable political environment going forward.
“This
along with much-awaited devaluation exercise attracting higher foreign
interest and encouraging participation by individuals and mutual funds
at current levels give weight to wider consolidation as we approach the
year-end window-dressing period”.
But another equally
big brokerage wrote in its weekly report that in the upcoming week, the
market would remain range-bound due to lack of triggers. E&P sector
was reckoned to remain in the limelight as a result of rupee
depreciation.
Others said that lack of clarity remained on next year’s elections and macroeconomic front which could dent investor confidence.
