Equities remain volatile

Pakistan Stock Exchange (PSX) remained under pressure during the outgoing week and the benchmark KSE-100 index declined by 407.94 points on week-on-week basis to close at 49,555.83 points.
Trading activities on the ready counter remained low as average daily volume declined by 29.38 percent on week-on-week basis to 369.63 million shares as compared to previous week's average of 523.40 million shares. Average daily trading value decreased by 20 percent.
Selling was seen from local and foreign fronts. The foreign investors sold out shares worth $15.3 million as compared to an outflow of $13.7 million registered during previous week. Total market capitalisation decreased by Rs 75 billion during the week to stand at Rs 9.871 trillion.
An analyst at AKD Securities said that the market took a breather this week with the index closing at 49,556, down 0.82 percent, ending its last 10 weeks bullish run, owing to rumours of action by SECP against brokers that were warned recently over compliance issues primarily related to financing.
Performance leaders during the week were LOTCHEM (up 7.9 percent), PSO (up 6.5 percent), EPCL (up 6.5 percent), ENGRO (up 4.7 percent) and MTL (up 4.4 percent); while laggards included APL (down 6.7 percent), FFBL (down 5.3 percent) INDU (down 5.2 percent), MCB (down 4.6 percent) and FATIMA (down 4.2 percent).
An analyst at BMA Capital said that the market remained volatile during the week and shed 0.8 percent on week-on-week basis in value to close at 49,556 points level. Key performers during the week were Steels, Oil and Gas and Textile sectors, while major laggards were Telecom, Insurance and Banking sectors. Major selling was witnessed in all other sectors including banks and cements. While NBFCs, organisations and mutual funds acted as a counter balance, absorbing most of the foreign selling with a net cumulative buying of $20.9 million.
An analyst at BIPL said that the week started with a steep decline which was later arrested by some support being provided by big sectors on the back of positive news.
As the result season continued the index remained range bound and failed to breach the 50,000 barrier. After witnessed a correction of nearly 1,000 points in the first session of the week, some support was provided by the main board stocks. With Brent oil surging 2.8 percent on week-on-week basis, oil and gas sector performed. The OGDC came out as the star performer as increase in oil prices was complemented by news of government postponing its plan to divest its stake in the company.
Overall, selective buying was witnessed by the investors. In the fertilizer sector, both FFBL and FFC posted above expected results for CY16 results which lead to some positive activity in the stocks. On the other hand, the ISL announced another capacity expansion which would allow the company to have a total CRC capacity of around one million tons, after which the scrip closed last three sessions on upper circuit. During the last session of the week, EFOODS announced a surprise dividend of Rs10/sh, along, citing the reason of maintaining company's long term target capital structure.