Equity values at local bourses continued bullish trend during last week ended on September 10, despite the fact that leverage position in CFS--new version of badla--remained at its maximum level at Rs 25 billion.
On Friday, the benchmark 100 Index closed at the level of 7889 points to make its 24-week high mark on weekly closing basis. From previous Friday, the Index managed to gain 99 points, an increase of 1.3 percent. Market capitalisation remained at Rs 2.2 trillion, or $38 billion. Average daily volume in the ready market was 345 million shares (Rs 38 billion) compared to 382 million (Rs 38 billion) of previous week.
Yet another week at the KSE saw encouraging volumes amid rising equity prices. The benchmark KSE 100 index, although crossed the strong 7800-point barrier, 7900 proved to be another strong barrier, which it could not breach during the week. The KSE-100 index made almost a century by gaining 99.5 points during the week.
Scrip-wise correction, to some extent, was witnessed during the week but at the same time, side scrips performed well.
The noted feature of the week was that most ex-dividend scrips saw healthy volumes and good price appreciation, such as Pakistan State Oil, Faysal Bank, Adamjee Insurance and Engro Chemicals.
With the dip in international oil prices at around $65 a barrel, after hitting a record high of $70.8 last week, most of the oil sector scrips remained range-bound, whereas the banking sector saw upward trend throughout the week on the back of healthy results. Refining sector performed well, notably Attock Refinery and Pakistan Refinery closing up 11.32 percent and 9.67 percent, respectively.
Monday started off with the index closing up by around 61 points, though the volumes remained almost 1.4 percent lower from Friday.
Overall, the refining sector did well on Monday, except for NRL, which closed down 5 percent (Rs 343.90) after its below-than-expected full year announcement of Rs 31.8 and 75 percent cash dividend. Pakistan Telecommunication remained the volume leader, contributing 22 percent to total volumes. Banking sector continued upward trend with MCB and NBP closing up 0.4 percent and 1.6 percent, respectively.
Correction was witnessed on Tuesday on the back of dip in international oil prices and CFS amount reaching its cap of Rs 25 billion. Buying at dips averted the market from a major fall with the index recovering 1.14 percent after making an intra-day low of 7719 points (down 1.67 percent) from the previous day close. Banking sector continued upward spree with NBP, MCB and BOP closing up 2.5 percent, 1.9 percent and 1.7 percent respectively.
On Wednesday, the market continued to move in a narrow band with not much fluctuation in index mover scrips. Companies having cross-holdings, such as MCB, AICL, NML and DGKC performed well. Kapco closed on its upper circuit (Rs 45.60), after announcement of a hefty final dividend of Rs 4.5 making it Rs 8 per share for full year. POL suffered on the back of delay in its BoD meeting (September 11) and reduction in international oil prices.
BOP was unexpectedly the volume leader on Wednesday, generating great buying interest among investors, to close up 3.2 percent.
Thursday again saw a bull-run on rumours regarding increase in CFS cap.
Refineries were the outperformers with ATRL and NRL closing on their upper circuits at Rs 204.80 and Rs 337, respectively. Banking sector again maintained its uphill course, especially NBP which closed up 2 percent.
On Friday, the market remained range-bound with low volumes, being the last working day of the week. Though the index had crossed the 7900 barrier in the first session, the intra-day profit taking did not allow the market to settle above this level.
Refinery sector was again the pick of the day with NRL and PRL closing up 3.9 percent and 4.5 percent respectively. PTC and OGDC, the main index movers and volume leaders, maintained their downward trend closing down 1.1 percent and 0.7 percent, respectively. Adamjee Insurance reached its upper circuit for the third consecutive day, closing at Rs 105.55.
An analyst from Alfalah Securities said that since the replacement of COT with CFS, the market has seen upside of almost 600 points without any major correction. "We expect major activity to remain in the selected stocks. We maintain our bullish stance on the banking and oil sector. However, a cautious approach should be adopted by investors."
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