EUR 13.06 For Business Accounts Only

AKD STOCK SMART, Nov 17, 2017

Benchmark KSE-100 index shed 592pts, closing the week at 40,844pts (down 1.43%WoW). MSCI’s semi-annual review and sliding oil prices remained the major highlights of the week while investors gave inadequate consideration to other political events including postponement of decision regarding the re-opening of Hudaibiya Paper Mills case. In its review, MSCI reclassified ENGRO (down 6.4%WoW) from large cap to small cap stocks while FEROZ, PSMC, and SHEL have been removed from small cap stocks. E&P companies (PPL/OGDC/POL –1.6/2.6/1.4%WoW) tracked declining oil prices (Brent -2.6%WoW) while the abrupt shut down of FO based plants disrupted the entire energy supply chain (ATRL/PSO/KAPCO/HUBC down 4.3/5.5/3.6/0.5%WoW). Other news flows included: 1) PBS releasing trade figures for 4MFY18 where trade deficit widened by 32.2%YoY to US%12.1bn on the back of 10.8%/23.4%YoY surge in exports/imports to US$7.1/19.2bn, 2) SBP reporting a jump of 74% in 4MFY18 FDI to US$939.7mn against US$538.7bn in 4MFY17 with China contributing US$630mn, 3) ADB unveiling its latest country operations for Pakistan for 2018-20 with resources available amounting to US$4.7bn including US$1bn for hydropower resources, 4) American Congress authorizing up to US$700mn in CSF to reimburse Pakistan for operations in Afghanistan, 5) PAMA releasing auto sales data where industry sales climbed 59.1%YoY in Oct’17 to 24k units with PSMC/INDU/HCAR recording growths of 82/28/50%YoY and 6) country’s foreign reserves depleting 1.09%WoW to US$19.7bn during the week ended on Nov 10'17. Average traded volumes for the week further thinned to 106.05mn vs. 113.84mn during the last week where top traded scrips remained: 1) ANL (59.34mn), 2) TRG (49.38mn), 3) SSGC (20.12mn), 4) SNGP (19.62mn) and 5) KEL (19.05mn). Major performance leaders of our universe were 1) ASTL (3.05%WoW), 2) NCL (2.23%WoW), 3) INDU (1.57%WoW), 4) FFBL (1.40%WoW) and 5) MLCF (0.96%WoW). The laggards included: 1) ENGRO (-6.38%WoW), 2) KEL (-6.12%), 3) PSO (-5.53%WoW), 4) CHCC (-4.88%WoW) and 5) EFOODS (-4.63%WoW). Foreign participation slightly went up with net inflows of US$1.13mn vs net outflows of US$1.78mn last week.