PSX tumbles 767 points amid economic, political uncertainty

[ni8mare]

PSX tumbles 767 points amid economic, political uncertainty
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Staff Report
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October 5, 2018
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— Index is 4 per cent away from touching 52-week low

KARACHI: If one thing was visible at the Pakistan Stock Exchange (PSX) on Friday, it was the colour red. Indices traded in the negative direction right from the word go owing to the uncertain macroeconomic situation of the country.

On the economic front, as per the latest data released by the State Bank of Pakistan on Thursday, the foreign reserves of the country fell to a four-year low of $8.4 billion level (6.95 per cent WoW basis). To add fuel to the fire came out the news of Shahbaz Sharif being taken into custody over the Saaf Paani case, wiping out any positivity. Furthermore, the Oil and Gas Regulatory Authority (OGRA) made an announcement to increase the prices of natural gas up to 143 per cent.

The KSE 100 touched intraday low of 39,030.03 after a massive loss of 1,050 points before it settled lower by 767.57 points at 39,319.55. The index is 4 per cent away from touching its 52-week low. The KMI 30 index declined by 2.29 per cent and closed the session lower by 1,559.07 points at 66,468.09, while KSE All Share index depreciated by 2.05 per cent or 602.89 points, ending the day at 28,795.99.


The trade volume was recorded at 153.50 million. Worldcall Telecom (WTL +32.44 per cent), The Bank of Punjab (BOP -2.58 per cent) and Pakistan International Bulk Terminal Limited (PIBTL -6.25 per cent) led the volume chart. The scripts had traded 9.34 million, 8.82 million and 7.97 million shares respectively.

Treet Corporation Limited (TREET -5.00) touched its lower lock after declaring its financial results for Financial Year 2018 (FY18). Sales were up by 12 per cent from the previous year, while earning per share declined from Rs1.45 to Rs-3.97.

Flying Cement Company Limited (FLYNG -1.28 per cent) announced its results for the year ending June 30, 2018. Sales appreciated by 18 per cent YoY whereas the earning per share increased from Rs1.13 in the previous session to Rs1.32 in the current year.

Diamond Industries Limited (DIIL -1.95 per cent) released its financial performance for FY18. Sales declined by 90 per cent from the preceding year. However, the company’s earnings per share improved from Rs-70.01 to Rs2.00.

 

[ni8mare]

THE EXPRESS TRIBUNE > BUSINESS

Market watch: Stocks hammered as KSE-100 dives 861 points
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Market watch: Stocks hammered as KSE-100 dives 861 points
By Maidah Haris
Published: October 5, 2018
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Concerns over macroeconomic situation drag benchmark index below 40,000. PHOTO: REUTERS

KARACHI: Stocks took a beating on Friday as concerns over macroeconomic situation of the country and political developments pushed the KSE-100 index down by 1,057 points in intra-day trading.

Earlier, the market lost 745 points before midday break.

The plunge came on the back of a number of developments on the economic front, which sparked panic among investors. Topline Securities’ analyst Nabeel Khurshid said market participants reacted to an alarming dip in foreign exchange reserves of the central bank.

According to data shared by the State Bank of Pakistan (SBP) on Thursday, the official foreign currency reserves dropped to nearly a four-year low of just $8.4 billion. Last time, on November 21, 2014, the country’s reserves had slid to $8.5 billion.

When trading resumed after the midday break, a slight ascent was witnessed, but it was short-lived as news of Shehbaz Sharif being taken into custody added fuel to the bearish sentiment.

Market watch: KSE-100 drops 473 points on tough measures suggested by IMF

The National Accountability Bureau (NAB) arrested Pakistan Muslim League-Nawaz (PML-N) President Shehbaz Sharif in the Ashiana-e-Iqbal Housing Scheme scam.

At close, the benchmark KSE 100-share Index recorded a decrease of 860.77 points or 2.15% to settle at 39,226.35.

Additionally, the Oil and Gas Regulatory Authority (Ogra) notified up to 143% increase in prices of natural gas sold by public utilities to different types of retail consumers, which came into effect on September 27, 2018.

This also contributed to the overall negative sentiment, taking the index below the key psychological barrier of 40,000.

A team of the International Monetary Fund (IMF), which held talks with high-ups of the government in Islamabad over the past few days, also concluded its visit.

Market watch: KSE-100 sheds 240 points amid thin trading

Following the talks, the finance ministry told the prime minister that an IMF bailout package remained the only viable option for Pakistan to stop the deterioration in macroeconomic indicators. The fund has recommended some harsh measures for stabilising the economy.

“Bears once again dominated trading due to the drop in foreign exchange reserves before the market took the midday break. In the second half, the market took a further dip when NAB detained PML-N President Shehbaz Sharif in the Rs14 billion Ashiana-e-Iqbal Housing Scheme case,” said JS Global analyst Danish Ladhani in his report.

All sectors came under pressure and energy, cement and financial stocks contributed most of the points to the decline in the index.

Cherat Cement (-4.62%) and Maple Leaf Cement (-4.85%) closed near their lower limits whereas DG Khan Cement (-3.27%) and Lucky Cement (-2.60%) were also in the red. In the financial sector, United Bank (-3.63%) was the major laggard.

Market watch: KSE-100 fails to sustain gains, loses 129 points

“Moving forward, we expect the market to remain volatile and choppy with lack of immediate triggers,” Ladhani said.

Overall, trading volumes increased to 154.1 million shares compared with Thursday’s tally of 110.5 million. The value of shares traded during the day was Rs5.4 billion.

Shares of 367 companies were traded. At the end of the day, 43 stocks closed higher, 311 declined and 13 remained unchanged.

WorldCall Telecom was the volume leader with 9.3 million shares, gaining Rs0.04 to close at Rs1.68. It was followed by The Bank of Punjab with 8.8 million shares, losing Rs0.29 to close at Rs10.97 and Pakistan International Bulk Terminal with 8 million shares, losing Rs0.66 to close at Rs9.90.

Foreign institutional investors were net sellers of Rs318 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.


Read more: KSE-100 , Latest , Pakistan Stock Exchange

PSX Index extends losses on IMF’s currency outlook



Staff Report

OCTOBER 5, 2018

KARACHI: Bears once again reined the local bourse on Thursday as the market came under duress after the International Monetary Fund (IMF) suggested raising interest rate further to double digits henceforth may deteriorate Pakistani Rupee further down in the current fiscal year.

Pakistan equities closed red with benchmark KSE100 Index settling below 40,100 level, taking 2018 TD losses to 1.0 percent. Market kicked-off on a positive note making an intra-day high of 43 points, however it later skidded lower and bears dominated as benchmark Index made an intra-day low of 566 points – momentarily breaching the psychological 40000 level.

Moreover, Fitch, the rating agency, also sustained that the recent hike in the policy rates by 100 basis points to 8.5 percent won’t be enough to prevent further depreciation.

Financials, cements and power aggregately contributed -211 points where Lucky Cement, DG Khan Cement, Habib Bank Limited (HBL), MCB Bank, United Bank Limited (UBL) and Hubco closed negative.

Thursday’s major heavyweights namely, HBL, Pakistan Petroleum Limited (PPL), Oil Gas Development Company (OGDC), Engro, MCB and UBL cumulatively contributed -126 points.

Traded volumes slightly increased by 23 percent day-on-day (DoD) to 110 million shares while value traded increased to US$34 million. Top volume stocks were Fauji Fertiliser Limited (FFL) and TRG.

“We expect market to remain volatile and choppy with lack of any immediate triggers”, said an equity analyst Maaz Mulla.

On the corporate front, Fauji Fertilizer Bin Qasim Limited (FFBL) gained 2.76 percnet as other shareholders have appointed Financial and Legal Advisors to move ahead on the proposed divestment of 51 percent shareholding in Fauji Foods Limited FFL PA +2.50% to Inner Mongolia Yili Industrial Group Co. Limited.



Murtaza Jafar of Elixir Research expects weaker market in near term until clarity on curtailment of twin deficits emerges – key decisions from the government will likely be announced after the By-Elections, scheduled for October 14, 2018.

Published in Daily Times, September 5th 2018.

 

[Areesh]

Good

 

[Thorough Pro]

Time to buy

 

[nahtanbob]

The 5 year chart looks good
https://www.bloomberg.com/quote/KSE100:IND

It is 25% off the peak

 

[nahtanbob]

The 5 year chart looks good
https://www.bloomberg.com/quote/KSE100:IND

It is 25% off the peak

it is down another 3.67% off today
at some point it should make for a great buy