KARACHI: Political events on the local and international stage kept the investors in Pakistani stocks on the edge for most part of the outgoing week, resulting in the third consecutive week of losing streak.

The KSE-100 index declined during the outgoing week by 182 points (0.41 per cent) to settle at 43,627 points at the close of trade on Friday. The index would have ended deeper in the red but for a surprise rally on the last trading day of the week.

Investors were fearful over the US bid to put Pakistan on global terrorist-financing watchlist. NAB’s move to put the names of Nawaz Sharif and others on ECL added to investors’ discomfort. Furthermore, the unrelenting foreign selling also subjugated the market.

Matters on macroeconomic front were not too good as the country’s foreign exchange reserves fell to $18.9 billion on the week ended Feb 9, which was the second time in 2.5 years that reserves dipped below $19bn. The report by the Planning Commission claiming government’s failure to achieve major macroeconomic targets during its five-year tenure, released during the week, further dampened investors’ sentiments.

Foreigners were net sellers of shares worth $16.1 million during the week including which the month-to-date outflow amounted to $28.2m. Major foreign sell-off during the week was witnessed in commercial banks at $10.0m and exploration and production $7.4m. Amongst local participants, insurance companies were net buyers of equity worth $16.8m, followed by companies which picked up shares valued at $9.01m. On the other hand, individuals sold shares of $6.51m and mutual funds booked profit through sale of $4.4m worth stocks.

The average daily traded volume dropped 18.8pc over the earlier week to 199m shares. Volume leaders were Azgard Nine at 87m shares, TRG Pakistan 54m shares, Lotte Chemical 37m shares, Fauji Fertiliser 37m shares and K-Electric 34m shares. The average daily traded value during the week declined 25pc to $66m.

Top performing sectors during the week were commercial banks, increasing by 380 points, oil and gas exploration companies 46 points on the back of recovery in international oil prices and tobacco 11 points. On the flip side, cement sector scrapped 168 points from the index, oil and gas marketing companies 85 points, pharmaceutical 60 points, fertiliser 56 points and engineering 39points.

Scrip-wise major gainers were Habib Bank, up 251 points, United Bank 73 points, Pakistan Petroleum 42 points, Bank Al Habib 41 points and Habib Metro 29 points. The decliners were Lucky Cement, down 67 points, DG Khan Cement 46 points, Sui Northern Gas 42 points and Searle Company 35 points.

Major performers during the week in AKD Securities’ universe were Habib Bank, growing 8.44pc week-on-week, United Bank 3.67pc, Allied Bank 2.25pc and Pakistan Petroleum 2.12pc while the biggest laggards were Maple Leaf Cement, shrinking 8.32pc, DG Khan Cement 6.62pc, Nishat Chunian 4.91pc, Pakistan Tele­com­­­munication Company 4.85pc and Fauji Cement Company 4.61pc.

Important news during the week included trade deficit widening to $21.54bn in January, auto sector registering 12.8pc year-on-year growth in January with industry off-take reaching an all time high of 24,500 units. Pakistan’s external debt liabilities grew sharply by $5.8bn to $89bn in 2HFY18, mainly due to issuance of sukuk and Euro bonds. Moreover, Foreign Direct Investment plunged by 2.9pc to $1.49bn from $1.53bn during 7MFY17. On positive note, remittances grew by 4pc YoY to $11.38bn in 7MFY18.

Some of the key result announcements scheduled for next week include: United Bank, National Bank, Allied Bank, FCCL, DG Khan Cement, Bestway Cement, OGDC, Mari Petroleum, PPL, Hubco, Nishat Power and Kapco.

Published in Dawn, February 18th, 2018