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Cautious trading predicted around court hearing on Panama papers – The News International

Pakistan stocks exchange (PSX) remained under pressure during the week ended February 17, 2017 as worsening security situation and political uncertainty kept the participants on the sidelines, dealers said.

An analyst at Arif Habib Limited (AHL) said mixed trend was witnessed at the local bourse with levels above the psychological 50K mark seemingly untenable.

“Resistance became the underlying theme of the market given reservations over the ongoing Panama proceeding and in-house financing issues of certain brokers while a few fatal incidents disturbed domestic peace,” AHL report said.

The KSE-100 shares index shed 1.1 percent or 549.37 points to close the week at 49,375.71 points. KSE-30 shares index shed 0.95 percent or 255.06 points to end at 26,695.57 points.

Average daily volumes were recorded at 354 million shares a day, down 14.5 percent. Foreign Institutions Portfolio Investment (FIPI) registered net inflow of $4.2 million during the week under review. Meanwhile the fertilizer sector displayed a lackluster performance primarily owed to Engro which eroded 90 points from the index amid below street consensus payout announcement. A report issued by BIPL Securities said after starting the week positively, it was the rumors on stay order over anti-dumping duty on steel products which led to some heavy selling. “However towards the latter half of the week, as the dust settled, the same stocks partially recovered their losses,” BIPL report said.

Smooth resumption of hearing over Panama Leaks created a positive sentiment in the market. Millat Tractors, along with its result, announced its plan of entering into the consortium setting up a Greenfield plant of Hyundai Motors which resulted in the stock closing on its upper circuit for the day. During the week, results of some blue-chips were released which garnered mixed reactions from the investors.

HBL attracted positive flows after it posted an EPS of Rs21.69 for CY16, while on the other hand, UBL moved into red after it posted an EPS of Rs22.65 for CY16.

In the cement sector, D.G Khan Cement (DGKC) and Fauji Cement (FCCL) posted an EPS of Rs10.28 and Rs0.94, respectively, for the half-year, impact of which largely remained neutral on both stocks.

Towards the end of the week, ENGRO posted its result for CY16, with a below expected divided of Rs4/share, which led to some heavy selling in the stock.

On the macro front, remittances in the seven months came down 1.8 percent to $10.95 billion. As per SBP, foreign direct investment increased 10 percent to $1.16 billion in seven months. Lastly, budget deficit increased to 2.4 percent of GDP against target of 1.8 percent.

Moving forward, analysts expect result season to drive the activity in the index as no major trigger appears in sight. Panama Leaks case looks to be moving forward smoothly while any disruption on the law and order front can damage the optimism surrounding the index.

Cautious trading predicted around court hearing on Panama papers was posted in Business of TheNews International – https://www.thenews.com.pk on February 19, 2017 and was last updated on February 19, 2017. This news story is related to Print/187270-Cautious-trading-predicted-around-court-hearing-on-Panama-papers/ – breaking news, latest news, pakistan ne. Permanent link to the news story “Cautious trading predicted around court hearing on Panama papers” is https://www.thenews.com.pk/print/187270-Cautious-trading-predicted-around-court-hearing-on-Panama-papers.

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