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AKD STOCK SMART

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Weekly Review

Remaining lackluster for most part of the week amid lack of positive triggers, continuing political noise and flattish int’l oil prices (Brent: -0.5%WoW to stand at US$65.19/bbl), market continue to remain range-bound, with benchmark KSE-100 index closing marginally higher at 43,363 (+0.82%WoW). While still remaining at a lower levels, average daily traded volumes at the bourse improved 15.01%WoW to 174.86mn shares with trading activity skewed towards side stocks.  In this backdrop, LOTCHEM (100.1mn shares), NRSL (55.3mn shares), PAEL (36.5mn shares), FFL (33.5mn shares) and ANL (31.3mn shares) were the volume leaders during the week. Key news flow impacting the market during the week included: 1) Commerce division revealing that the country’s exports during Feb’18 grew by 16%YoY to reach at US$1.9bn, while imports inched up 8.43%YoY to US$4.8bn, 2) OGRA granting provisional or construction licenses to 15 new oil marketing companies (mostly local) to build storage infrastructure across the country, 3) GoP planning to raise gas prices by 5-7%, generating additional revenue of PkR18bn to cover losses of the two gas utilities (SSGC & SNGP) with retrospective effect from 2012-13, 4) auto industry sales rising 15%YoY to 22,654 units in Feb’18, 5) GoP considering relief package for stock market and may also consider withdrawal of super tax/tax on bonus shares in the upcoming budget and 6) HUBC disclosing sale of 172.58mn shares of the company to Mega Conglomerate (Pvt) Ltd. Performance leaders during the week were: 1) BAFL (+6.64%WoW), 2) INDU (+2.81%WoW), 3) ASTL (+2.53%WoW), 4) OGDC (+2.23%WoW) and 5) PSMC (+1.56%WoW); while laggards included: 1) CHCC (-7.83%WoW), 2) FFC (-6.65%WoW), 3) HASCOL (-5.64%WoW), 4) ENGRO (-4.59%WoW) and 5) NML (-4.30%WoW). Foreign participation remained in the negative zone with US$10.46mn outflows compared to US$3.87mn outflows in the preceding week.

 

Outlook

In the absence of any major triggers, market is likely to take its direction from budgetary proposals, where positive proposition in this regard would can renew investor’s optimism in local bourse. Beside this, major results announcements (HBL, PSMC & DAWH), update on windfall levy case and commodity price movements can also trigger stock-specific performance in the next week.

  

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