SUNRISE CAPITAL (PVT) LTD | 01 November 2016 | LANDING

Index posts highest gain of 2016, up 1,406 points. In the beginning investors believed that situation might be struck by continued political standoff between the government and the opposition but later on The Supreme Court decision for the formation of a commission to probe the Panama Papers leaks played as a catalyst. The Pakistan Stock Exchange (PSX) benchmark KSE-100 index hit 41,299  rose 1,406 points or 3.52% on first day of November. The rally was linked to the cancelation of Lock down Islamabad. Swift activity witnessed in the market as turnover settled at 506 million shares as compared to 237 million shares in the last trading session. Shares of 412 companies were traded, at the end of the day 356 stocks closed higher, 43 declined, while 13 remained unchanged. The value of shares traded during the day was at recorded the level of PKR 12.81 billion increased by 128%.

Bulls remain active in capital market; major activity witnessed in, Commercial Banks, Power Generation & Distribution and Technology sector. In Commercial Banks sector, BOP, UBL, HBL remain shining star throughout the session and appreciated their value by 6.41%, 3.92%, 3.50%. In Power Generation Sector, The utility gained on the back of an Abraaj Group’s announcement that its subsidiary KES Power has entered into a definitive agreement to divest its shareholding, at 66.4pc, in K-Electric. KEL, HUBC, JPGL  appreciated their value  by 2.89%, 3.06%, 18.06%.Moreover in  Technology sector WTL, SYS, TRG appreciated their value by 23.11%, 4.99%, 4.99%.

Active list was topped by KEL with 41 million shares as it closed at PKR 9.60 with a positive change of PKR 0.27.BOP was the second highest on the volume chart with 28 million shares closed at PKR 16.61 with a positive change of PKR 1.00. It was followed by FDIBL with 22 million shares closed at PKR 3.51 with a positive change of PKR 0.97, SSGC with 17 million shares closed at PKR 40.56 with a positive change of PKR 1.85.

Today major trading activities were recorded in Commercial Banks Sector as it was traded above 69 million shares followed by Power Generation & Distribution sector which recorded the volume of 62 million shares whereas Technology & Communication sparked at 3rd place by trading above 51 million shares.

Highest increase was recorded in the shares of Nestle Pakistan, which rose by PKR 211.00 to PKR 8311.00 per share; followed by Wyeth Pak Ltd, that improved by PKR 88.24 to PKR 3294.03 per share. Major decline was witnessed in the shares of Murree Brewery, which fell by PKR 52.77 to PKR 1002.72 per share; followed by Rafhan Maize, dropped by PKR 27.50 to PKR 7412.50 per share.

Factors for Today:

·        GSP Plus: EU team takes up targets tied to 27 Conventions

·        Rs17.6bn for LPG air mix plants, fresh loan for Nandipur project approved

·        ECC extends another sovereign guarantee to Nandipur power plant

·        Govt moves to appease masses, keeps oil prices unchanged

·        Banking sector grew by 16.1pc in FY16

Factors to watch:

·        International Oil prices.

·        PKR vs US$ movement.

·        Results Seasons.