Investors eye triggers sans oil boost

Investors may look for triggers to bet on the stocks in the next sessions as a chance of oil boost fades with a failure in cutting global supply glut, but there are major results in the offing. 

The Pakistan Stock Exchange’s benchmark KSE 100-share Index rose 3.63 percent, or 1,180.38 points, to close at one-month high at 32,478.98 points in the last week ended on Thursday.

With the addition of gains of 1.77 percent, or 546.80 points, attained in the prior six sessions, the cumulative gains of the ten straight bull-run sessions comes at 5.61 percent, or 1,727.18 points.

Last week, average daily volume increased 24 percent to 144.3 million shares. Average daily value rose 22 percent to Rs8.5 billion. Foreigners remained net sellers of the shares worth $2.2 million during the week.

“The market may come under pressure on correction in the international crude oil prices and take cue from weak global bourses,” said Ahsan Mehanti at Arif Habib Corporation.

The local bourse was closed on Friday on a public holiday.

Mehanti said the fiasco on privatisation front, especially in case of Pakistan International Airlines, may add up pressure. “Any good news could help the market absorb some small shocks,” he said.

Analysts said the global leaders’ efforts to cut crude oil excessive supplies to boost prices failed to achieve the objective. They, however, would closely monitor a meeting scheduled on Sunday between leaders of Venezuela and Saudi Arabia to curb the gluts.

The conclusion of the meeting would give a direction to global stock markets where Pakistan Stock Exchange would not be an exceptional one, they said.

“We expect international crude oil prices and foreign investor sentiment to continue to drive the index in the short-run,” said an analyst.

The analyst said financial results for Engro Fertilizer and Engro Corporation in the next few weeks will be in the limelight. Investors will also await earnings announcements of some major companies in the exploration and production, refineries and oil marketing companies sectors.

“Our outlook on the market is stable on improving economic scenario, chained with the announcements of corporate results to provide impetus to the local bourse in the coming week,” said a report by Arif Habib Limited.

"However, foreign selling remains a downward risk to the pace of the market. Investors are advised to amass fundamentally strong scrips and go long on their investments.”

Analysts said investors may resort to profit-selling in the absence of major developments in the offing. They have built significant positions in the last two weeks with almost all the sectors, including energy, bank, cement, automobile and pharmaceutical in the limelight.

Associated Services Limited, Jahangir Siddiqui & Co, JDW Sugar, Honda Atlas Car and Habib Bank Limited were the major gainers in the last week, while Pakistan Tobacco Company, Murree Brewery, Punjab Oil, Colgate Palmolive, and Bata (Pakistan) were the major losers in the benchmark index.