Friday 16 December 2016

SUNRISE CAPITAL (PVT) LTD | 16 December 2016 | LANDING

Bulls continued to run at the stock market which forces the KSE-100 index touch by 46,661.74 levels in early trade. However, Profit-taking set in later due to Govt. takes back 33pc cut in gas prices for industry that’s makes the cement, Textile & Fertilizer sector in negative pool. Despite the negative lead from regional equity markets following rate hike decision by US Federal Reserves and lower global crude led to volatility in regional market as well as on local front. Further market maintained its positive run helped by strong local liquidity in blue chip names that pushed benchmark KSE-100 index above the 46,500 levels. At close, the PSX’s benchmark KSE 100-share Index finished with a rise of 0.49% or 226.18 points to finish at 46,584.53 levels.  Relatively Strong activity witnessed in the market as turnover settled at 346 million shares as compared to 340 million shares in the last trading session. Shares of 391 companies were traded; at the end of the day 189 stocks closed higher, 181 declined, while 21 remained unchanged. The value of shares traded during the day was at recorded the level of PKR 15.95 billion increased by 3%.

Volatility Prevailed in capital market; major activity witnessed in Commercial Banks, Transport and Cement sector. In Commercial Banks sector, Anticipation of hike in interest rates, investors took fresh positions in the banking stocks where BOP UBL FABL (+3.78%), (+1.18%), (+2.18).In Transport Sector, PIBTL PNSC improve their value by (+4.99%), (+1.56%) while, PNSC with no change. Moreover in Cement Sector, Related news KOHC Participating in the bidding process for the purchase of north cement plant from Dewan Cement limited. KOHC (+2.97%) POWER (+7.96%) while LUCK drop their value by (-1.34%).

Active list was topped by PIBTL with 28 million shares as it closed at PKR 37.36 with a positive change of PKR 1.78. BOP was the second highest on the volume chart with 19 million shares closed at PKR 17.45 with a positive change of PKR 0.64. It was followed by POWER with 18 million shares closed at PKR 13.49 with a positive change of PKR 1.00, EPCL with 17 million shares closed at PKR 15.97 with a negative change of PKR 0.13.

Today major trading activities were recorded in Commercial Banks Sector as it was traded above 59 million shares followed by Transport sector which recorded the volume of 36 million shares whereas Cement sparked at 3rd place by trading above 35 million shares.

Highest increase was recorded in the shares of Sanofi-Aventis, which rose by PKR 109.77 to PKR 2305.35 per share; followed by Colgate Palmolive, that improved by PKR 82.10 to PKR 1752.17 per share. Major decline was witnessed in the shares of Unilever Foods, which fell by PKR 240.00 to PKR 5610.00 per share; followed by Pak Tobacco, dropped by PKR 37.32 to PKR 1091.01 per share.

Factors for Today:

·        Govt takes back 33pc cut in gas prices for industry
·        Process for sale of 40pc PSX stake begins
·        FDI in Pakistan down massive 45% in Jul-Nov
·        Suzuki Motors to invest $460m for new production plant
·        Oil prices edge up as Kuwait cuts supplies by more than expected

Factors to watch:

·       International Oil prices.
·       PKR vs US$ movement.
·       Panama Leak Case

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