Tuesday 20 December 2016

SUNRISE CAPITAL (PVT) LTD | 20 December 2016 | LANDING

Pakistan Equities market carried the Bull Run with Benchmark-100 index closing Thirteen Consecutive positive session. Despite a news of “Man shot the Russian Ambassador in front of a shocked gathering at a photo exhibit in Ankara, make the market participants in pressure but after that market going on a positive track and index crossed the 47,300-point barrier intraday to hit 47,380.88 points. Moreover, The Netherlands-based dairy company has acquired 51% stake at Rs120 ($1.14) per share in Engro Foods. Further, the surge in WTI crude prices, rising banking spreads and speculations ahead of a revised auto policy played the role of a catalyst for the rising benchmark index. At close, the PSX’s benchmark KSE 100-share Index finished with a rise of 0.58% or 271.47 points to finish at 47,210.06 levels.  Relatively Strong activity witnessed in the market as turnover settled at 450 million shares as compared to 344 million shares in the last trading session. Shares of 417 companies were traded; at the end of the day 164 stocks closed higher, 238 declined, while 15 remained unchanged. The value of shares traded during the day was at recorded the level of PKR 16.95 billion increased by 8%.

Volatility prevailed in capital market; major activity witnessed in Commercial Banks,   Engineering and Cement sector. In Commercial Banks sector, BOP, remain in the red zone and drop their value by (-1.09%) while, JSBL & HBL contributed the most and appreciated their value by (+5.92%), (+5.00%).In Engineering Sector, DSL ASL INIL appreciated value by (+8.54%), (+0.29%), (+2.83%). Moreover in Cement Sector, POWER, depreciated their value by (-4.75%) while, FCCL & LUCK surge their value by (+0.79%), (+0.40%). In addition Dutch company FrieslandCampina Pakistan Netherlands-based dairy company has acquired 51% stake at Rs120 ($1.14) per share in Engro Foods. It acquired 47.1% (or 361.29 million shares) from Engro Corporation, ENGRO & EFOODS appreciated by (+1.34%), (0.98%).

Active list was topped by DSL with 58 million shares as it closed at PKR 11.56 with a positive change of PKR 0.91. BOP was the second highest on the volume chart with 27 million shares closed at PKR 18.08 with a negative change of PKR 0.20. It was followed by EPCL with 23 million shares closed at PKR 17.42 with a positive change of PKR 0.78, JSCL with 22 million shares closed at PKR 25.39 with a positive change of PKR 1.16.

Today major trading activities were recorded in Commercial Banks Sector as it was traded above 93 million shares followed by Engineering sector which recorded the volume of 81 million shares whereas Cement sparked at 3rd place by trading above 35 million shares.

Highest increase was recorded in the shares of Rafhan Maize, which rose by PKR 196.50 to PKR 8197.50 per share; followed by Wyeth Pak Ltd, that improved by PKR 136.94 to PKR 4790.25 per share. Major decline was witnessed in the shares of Nestle Pakistan, which fell by PKR 90.00 to PKR 8610.00 per share; followed by Bata (Pak), dropped by PKR 70.00 to PKR 4630.00 per share.

Factors for Today:

·        China to set up steel factory in Gwadar under CPEC
·        Dutch company acquires Engro Foods for $446.81m
·        Oil steady in timid trade ahead of holiday season
·        Borrowing for budgetary support exceeds Rs 1 trillion
·        Aptma lauds Punjab CM’s directives on uniform gas tariff


Factors to watch:

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

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