KSE cap off tough week with across the board losses

Karachi stocks index closed the week ended November 20, 2015 in red with investors hesitant to make bets due to continuous foreign selling, decline in oil prices and lack of market-moving update.
Faisal Bilwani at Elixir Securities said the bourse started the week in negative zone after a terror attack in Paris. “However, subsequent market recovery was only short lived as investors opted to rather book gains owing to thin volumes and lack of triggers which ultimately dragged the index down,” Bilwani said.
The KSE-100 shares index shed 287.78 points or 0.84 percent to close the week at 33,857 points. KSE-30 shares index shed 206.36 points or 1.02 percent to end at 20,000.11 points.
Average daily volumes declined by 5.0 percent to 176 million shares a day. Foreigners off loaded their positions during the week with net selling of $15.9 million.
Fahad Qasim at Topline Securities said foreign investors offloaded stocks in Oil & Gas and Chemicals sectors with selling of $9.4 million and $5.4 million, respectively.
Again, as in many preceding weeks, the week lacked any major news flow to stir meaningful action. However, some political developments will have a bearing on the future political landscape of the country.
The local body elections gave a stronger footing to the present PML-N government against opposition parties. Globally, US Fed’s meeting minutes revealed likelihood of raising interest rates in December, which kept most major markets in check.
While oil prices remained under pressure with WTI falling below $40/bbl, a negative statement from DG Petroleum Concessions, that Sui Mining Lease will not be extended by five years for PPL exacerbated market sentiment in the stock.
Mari Petroleum, however remained upbeat, defying sector headwinds, and rose 11 percent during the week. Mari posted the highest weekly on account of monthly data revealing the availability of hydrocarbons from two development/appraisal wells located in Mari field (Mari 98 and Mari 99).
Index heavy weights, OGDC and MCB, remained the top index movers which contributed 133pts to the index decline followed by ENGRO contributing 39.67 points, HUBCO 23.28 points and PPL contributing 21.52 points to the index decline.
Faizan Ahmed at JS Global said market remained directionless as the tug-of-war between the bulls and the bears continued with bears winning the battle this week.
“Resurfacing interest rate cut expectations amidst low inflation failed to excite the market as fiscal deficit numbers remained higher than budgeted with year-end numbers expected to exceed target,” Ahmed said.” Strengthening expectations of interest rate hike by FED in December along with spree of foreign selling further fuelled bearish sentiments.”
Market is expected to remain lackluster next week amidst persistent foreign selling and lack of triggers on the horizon. The Monetary Policy statement will be a non-event for the market as the central bank has announced to keep the rates unchanged at 6.0 percent.