Buyers await attractions; cements, oils likely crowd-puller

Investors are closely tracking oil movement and foreign flows to reset their portfolios and any positive trigger will lend support to the index to regain its earlier position close to 33,000 points, dealers said. 

“(We) expect a volatile trading next week with the 100-share Index likely consolidating near 33,000 points due to limited positive triggers in sight,” said Elixir Securities in a comment. “Increasing foreign participation coupled with retraction in global commodity prices are expected to guide the index. We maintain our liking for cements and industrials, while oils will track global crude.” 

The Pakistan Stock Exchange’s benchmark KSE 100-share Index increased 227.42 points, or 0.70 percent, to close at 32,669.16 points on Friday.

Average daily volumes rose 30 percent to 175.2 million shares during the last week. Average daily value surged 10 percent to Rs9 billion ($86.1 million). Market capitalisation improved Rs50 billion to Rs6.84 trillion.

Topline Securities said foreigners were net buyers of $4.1 million during the previous week. Major buying was seen in cement sector with net buying of $6.1 million, whereas net selling was seen in banks worth $8.6 million, the brokerage house added.  KASB Securities agreed that the sector or company specific news, along with trends in foreign institutional portfolio investment, is likely to be closely tracked for the next week.

“We believe market is likely to continue the hunt for any tangible positive trigger. We continue to favour oil and gas sectors with our liking heavily skewed towards exploration and production companies,” forecast the securities company in its report.

Arif Habib Limited expects the market to remain range-bound in the coming week. “We also feel that the strong fundamentals are intact, however external factors, such as oil price movement and foreigner activity at the local bourse are key triggers going forward,” the brokerage house said in a report.

Shajar Capital believes that the market will remain positive in the upcoming week as foreign flows to take front seat going forward. “Lack of triggers may pull down volumes. We suggest investors to take exposure in cement, power and oil marketing companies in the coming week.”

Topline Securities said fixed line telecommunication was among the unlikely leaders over the last week. The sector rose 7.1 percent, while food producers and oil and gas increased 4.8 percent and 2.9 percent, respectively. General industrials and automobile and parts fell 3.3 percent and 2.6 percent, respectively.

KASB Securities said Attock Cement, Pakistan Telecommunication Company Limited, TRG Pakistan, Feroze1888 and Engro Foods Limited were the major gainers. Allied Rental Modaraba, Associated Services Limited, Packages Limited, Standard Chartered Bank, and Dawood Hercules were the major losers on the benchmark index last week.