Market Watch: Stocks Bloodbath As Pakistan Upgraded To MSCI Emerging Markets

Week 1 : 03-07 July 2017
Published: June 1, 2017SHARE TWEET
Market watch: Stocks bloodbath as Pakistan upgraded to MSCI Emerging

Markets
KARACHI: It was a historic day for the Pakistan Stock Exchange (PSX) and the market responded in kind, albeit in
the most unexpected way possible.
After almost a year of waiting and anticipation over Pakistans reclassification, stocks bled on the first day of
inclusion in the MSCI Emerging Markets Index, with the KSE-100 Index suffering an intra-day fall of over 2,230
points for its biggest decrease in history, in terms of points.
With massive foreign selling and little will to buy, the KSE-100 a benchmark for market performance
finished at 48,780.81 at close of trading, a retreat of 3.58% or 1,810.76 points in a day.
The development was in stark contrast to expectations of the wider market that was foreseeing a huge amount
of inflow once Pakistan was reclassified as an emerging market.
Market watch: KSE-100 undergoes battering, ends near 50,500
The market wasnt expecting this to happen, Arif Habib Limited CEO Shahid Habib told The Express Tribune.
Active funds that track frontier markets sold on May 31 and it was the same case today. They sold more than
what was imagined. We were expecting a bearish sentiment to kick in after an initial rise, but not this way.
The bearish tide meant several stocks, including those in the MSCI Pakistan Index, hit their lower limit a
maximum decrease of 5% before trading is locked to avoid a further decrease.
But it wasnt just selling on the part of active funds that led KSE-100 to its biggest fall.
The budget was pretty hard for the stock market. Capital gains tax was changed to a flat 15%, tax rate on
dividend was increased and the recommendation to charge tax on the face value of bonus shares was ignored.
Everyone is taking the budget measures into their stride. Funds that bought before Pakistans upgrade are now
bearish. With the ongoing probe of the joint investigation team the political scenario is uncertain as well.
Market watch: KSE-100 undergoes battering, ends near 50,500
So whats next for 2016s best-performing Asian market?
With company fundamentals intact and outlook on earnings and growth largely unaffected, Habib said
someone will have to take the lead as stock prices become attractive.
No one is taking the lead just yet. When prices collapse, it is generally a while before buyers step in. We will
have to wait and see.
Habib, however, said that Pakistan handled its transition to the emerging market well. Qatar and the UAE were
not able to handle the high amount of volume. The PSX, in contrast, managed really well.
Meanwhile, Elixir Securities, in its report, stated equities closed deep in the red on institutional sell off.
The index opened down as selling by foreign institutional investors from Tuesday reportedly hit the system
and dragged KSE-100 near 49,800 within the first 15 minutes of trading, said analyst Ali Raza.
The market witnessed a short phase of recovery but aggressive local institutional selling thereafter, reportedly
to meet possible redemptions, resulted in majority of index names including MSCI EM constituents tanking and
hitting the lower price limits, said Raza.
Stock market gearing up for MSCI inclusion day
Meanwhile, higher-than-expected inflation announced during mid-day was also a dampener where CPI for the
month of May surpassed the 5% mark for the first time since November 2014.
[We] expect heightened volatility on a one-session Friday with market opening down but possibly seeing
recovery near days end as savvy investors jump in to take advantage of the weakness and cherry pick notable
Index names, he added.
JS Global analyst Arhum Ghous said that pressure in the market was on the back of MSCI EM rebalancing and
likely redemptions in mutual funds.
Overall, trading volumes fell to 403 million shares compared with Wednesdays tally of 410 million.
PSX extends trading time ahead of MSCI upgrade
Shares of 394 companies were traded. At the end of the day, 35 stocks closed higher and 352 declined while
seven remained unchanged. The value of shares traded during the day was Rs27.5 billion.
K-Electric Limited was the volume leader with 49.8 million shares, losing Rs0.38 to close at Rs6.94. It was
followed by Bank of Punjab with 27.6 million shares, losing Rs0.21 to close at Rs1.15 and Power Cement (right
shares) with 23.7 million shares, losing Rs0.35 to close at Rs2.05.
Foreign institutional investors were net sellers of Rs1.73 billion during the trading session, according to data
maintained by the National Clearing Company of Pakistan Limited.
Published: July 1, 2017SHARE TWEET
PSX hires McKinsey to boost its earnings
KARACHI: Pakistan Stock Exchange (PSX) has hired a foreign consultant McKinsey for pointing out issues and
problems, suggest solutions and get them implemented to double profit of the bourse.
This was revealed by former PSX CEO Arif Habib, who attributed the remarks to PSX Acting CEO Haroon Askari.
PSX after-tax profit dropped 58% to Rs132.3 million in the year ended June 30, 2016 compared to Rs317 million
in the previous fiscal year, according to the Annual Report 2016.
A bourse official added that the foreign consultant had been examining PSX for the last three weeks and was
expected to complete its study by the end of July. In the second phase, it will implement proposed solutions.
The firm is estimated to charge Rs3-4 million at the time it will implement the solutions, he said. The firm is
known for its skills to turn around organisations.
McKinsey will give a three-year business plan to PSX, which will include launch of new products and services,
how to increase the investor base to one million in the next three years, how to attract up to 300,000 Chinese
investors to trade in PSX-listed firms and how to increase the number of listed companies, especially the state-
owned firms.
The official said the consultant would develop the Organisational Health Index for PSX to underline its
weaknesses and suggest solutions.
Published in The Express Tribune, July 1 st, 2017.
Published: July 3, 2017

Dump and run at PSX as KSE-100 plunges over 1,630 points
KARACHI: Investors adopted a dump-and-run approach as the KSE-100 Index plunged over 1,630 points or 3.5% in
intra-day trading, falling below the 45,000 level with political uncertainty and lack of positive triggers doing enough
to push stocks deep in the red.
The KSE-100 a benchmark for market performance underwent selling pressure from the word go, dipping to a low
of 44,932 points at the time of filing this report with volumes remaining on the lower side.
Market talk suggested that the ongoing Panama case proceedings of the joint investigation team (JIT) probing Prime
Minister Nawaz Sharif and his familys offshore assets is the chief reason behind investors dump-and-run approach at
the Pakistan Stock Exchange (PSX).
The index has been under immense pressure since the last week of May when Finance Minister Ishaq Dar, who is also
due to appear before the JIT today, announced the federal budget that was widely seen as a negative for stock market
investors.
An overbought market was then given a rude awakening when MSCI-related inflows, expected after Pakistans
official reclassification as an emerging market was complete on June 1, fell below estimates.
Subsequent heavy net selling by foreign investors, coupled with the JIT summoning the prime minister last month, has
led to panic selling with the index shedding close to 15% in the last five weeks alone.
Analysts and followers expect that the stock market is likely to remain under pressure unless clarity emerges on
Pakistans political front. On Monday, however, the index continued its ride in the red.
Engro Polymer, TRG and Ittefaq Iron Industries were the volume leaders with 9.3 million, 8 million and 5.4 million
shares, respectively, changing hands by 1pm.
Construction of carriage way. (check which company)
Updated July 03, 2017
Bloodbath at PSX: benchmark index sheds 1,900 points

The Pakistan Stock Exchange (PSX) saw a bloodbath Monday, with the benchmark KSE-100 Index shedding
1,900 points as political uncertainty clouded the outcome of a Supreme Court-sanctioned probe into the Sharif
family's business dealings abroad.
The benchmark index plunged 4.08 per cent, falling through the 45,000 level to close at 44,665.41 points. The
market recorded the day's low at 44,639.82 points during the trading session.
It was a one-way street, as the market's open at 46,565 remained the day's high.
According to Topline Securities, the market experienced the sharp drop in value on the very first day of the
new fiscal year.
The last time such the index tanked over 4pc was in August 2015, when China depreciated the Yuan, and
before that in August 2014 during the Pakistan Tehreek-i-Insaf's sit-in in Islamabad.
The banking sector led activity at the bourse, with over 34 million shares traded, followed by the cement and
the communication sectors with 21.4 and 16.6 million shares, respectively.
Senior analyst Ahsan Mehanti attributed the prevailing bearish sentiment to apprehensions over the outcome
of the Panamagate probe into the Sharif family's business dealings abroad.
"Investors in the capital market are fearing that it [the decision on the Panama Papers investigations] might
be against the ruling regime," he told Dawn.com.
He was of the view that uncertainty will prevail over the market until July 10, which is when the JIT is
expected to submit its report before the Supreme Court bench overseeing it.
Hamad Aslam, director and head of research at Elixir Securities Pakistan, also held that the JIT is the main
factor behind the bearish activity.
He was of the opinion that, on one hand, the market was experiencing a correction, whereas on the other,
long-term investors were waiting for the market to settle down so they could invest in mutual funds.
"Usually, long term investors prefer to invest in mutual funds when the market is bearish, so I am confident
that the market will take a u-turn around July 10 when the benchmark will be on an upward trajectory amid
already lowered prices," he said.
He was optimistic that Rs30-40 billion could be injected into the capital market within the next two weeks.
Topline Securities in an analyst note said that today's performance was underpinned by across-the-board
selling, while institutions failed to provide support to the market.
"It is likely that those currently in the market are trimming positions while those with liquidity likely believe
that risk is too high for deployment," the note said.
A total of 77.7m shares of KSE-100 companies changed hands during the session, with a total worth of nearly
Rs7.2 billion.
Stocks of 361 companies in all were traded on the exchange, of which 27 gained in value, whereas 321 declined
and 13 remained unchanged.
Volumes were led by:
1. Engro Polymer: 10.5m shares traded [-4.99pc];
2. Maple Leaf Cement: 9.5m shares traded [-2.56pc];
3. Bank of Punjab: 8.4m shares traded [-50pc];
4. Bank of Punjab: 8.2m shares traded [-6.37pc];
5. TRG Pak Ltd: 8.0m shares traded [-4.99pc];

Benchmark index gains 730 points
The Pakistan Stock Exchange has ended Tuesdays session on a positive note, with the benchmark KSE-100
index gaining 728.65 points, or 1.63 per cent, by the close of the trading session to reach 45,394.06.
Volumes were led by commercial banking stocks as the benchmark index staged a recovery after yesterdays
1,900 point bloodbath.
Close to 99.8 million shares of KSE-100 stocks changed hands by the end of the session, with a total worth of
nearly Rs7.63 billion.
Stocks of 382 companies were traded, of which 228 gained in value, 131 declined and 23 remained unchanged.
1. Engro Polymer: 14.78m shares traded [+0.63pc];
2. TRG Pak Ltd: 14.20m shares traded [-0.26pc];
3. K-Electric Ltd: 13.45m shares traded [+0.29pc];
4. Habib Metropolitan: 7.56m shares traded [+0.95pc]; and,
5. Aisha Steel Mill: 7.24m shares traded [-0.52pc].

Panic sweeps the trade floor
KARACHI: Stockbrokers monitor share prices on Monday at the Pakistan Stock Exchange. Investors adopted a dump-
and-run approach, plunging the benchmark index by 4.08pc amid political uncertainty and lack of triggers.Online
KARACHI: Monday saw a bloodbath on the trade floor as the benchmark KSE-100 index crashed by 1,900
points, the highest single-day decline.
The event brought back memories of Aug 15 last year when markets across Asia collapsed in the wake of an
engineered depreciation in the Chinese yuan and the plunge of 4pc in Aug 2014 during the prolonged and
chaotic protests and sit-ins in Islamabad. Since the start of the year, the benchmark KSE-100 index has lost
6.7pc of its value after a brief rally in the first few months.
Mondays fall obliterated Rs327 billion in PSX market capitalisation. Moreover, 72 stocks hit their lower
circuits the maximum permissible decrease in any stock in a single session as the trading board flashed
red all over.
Major bleeding was seen in HBL (-5pc), UBL (-5pc), LUCK (-5pc), OGDC (-5pc), MCB (-5pc), Engro (-4.1pc),
Hubco (-4.7pc), DGKC (-4.8pc), FFC (-4.1pc) and PSO (-4.8pc), which together contributed 881 points to the
index fall.
Sector-wise, banks shed 496 points, cements 256 points, fertilisers 232 points, E&P 189 points and OMC 138
points.
Many dealers pointed towards rising political uncertainty as the reason behind the panic selling on Monday as
the date of submission of JIT report on July 10 drew nearer.
But others with a more expansive view differed. When we go through the numbers, mutual funds, insurance
companies and banks have been net buyers, says Arif Habib, referring to the sustained declines in recent
weeks. He pointed to a few budgetary measures and net selling by foreigners and individuals as the main
cause, before adding that JIT- related concerns are a factor too.
Another high net worth individual, who did not wish to be identified, pointed towards a few large redemptions
in mutual funds, possibly by the textile industry. The reason for their pull back being the taxes imposed on
mutual funds in the new budget. The data released by the National Clearing Company of Pakistan Limited
(NCCPL) in the evening showed that among local participants, all others banks, companies, insurance firms
and individuals were net buyers. Mutual funds were the lone net sellers of equity worth $8.7m.
The exuberance caused by the expectations of foreign inflows of $400m on the entry of PSX into MSCI EM,
had propelled KSE-100 index to 53,000 points from 44,000 points in a prolonged rally, said one dealer,
adding that as hopes turned to dust, big holders were now trimming positions while those with liquidity likely
believed that the risk was too high for deployment.
Some dealers pointed out that the correction made valuations look attractive for long-term investors as the
price-to-earnings multiple of PSX stood at 9.5 times forward earnings against average EM multiple of 12.5
times. But that observation had scant impact on sentiments.
Haroon Askari, acting Chief Executive Officer of PSX, said that he was not supposed to comment on day-to-
day market performance, but assured that all risk management measures were in place and daily mark-to-
market positions were smoothly settled. There are currently 407 Trading Rights Entitlement Certificate
(TREC) holders with 235 active brokers.
The upcoming results season with expectations of higher corporate earnings and payouts failed to allay
investors deepening concerns. Some suspected that the carnage was, at least in part, caused by the major
investors and stockbrokers who went to liquidate their huge positions they had taken in six heavyweight MSCI
Emerging Market eligible stocks.
Nasim Beg, Vice-Chairman, MCB-Arif Habib Investments that manages Rs70bn, thought that the decision of
the regulator to ban in-house financing had saved the situation. Small investors are no longer able to take
speculative positions, that resulted in huge losses to them in the past when financing or badla was available.
Foreign investors bought stocks worth $4.9m on Monday. It caused just a slight change in foreigners sell-off
of Pakistan stocks worth a huge $333m to-date in 2007 nearly eight times the foreign outflows of $41m seen
in the corresponding half year of 2016.
Published in Dawn, July 4th, 2017
Political noise reverses intraday gains from rupee
devaluation
The Pakistan Stock Exchange (PSX) on Wednesday saw investor sentiment seesaw considerably, with the
benchmark KSE-100 index surging to a day's high of 46,358 points from a low of 45,153 962, before settling
nearly flat with a gain of 19 points at market close.
The PSX had only two days earlier experienced a bloodbath, with the benchmark KSE-100 Index shedding
1,900 points on reports that the Supreme Court-appointed JIT's proceedings were not going in favour of the
first family.
The JIT has to submit its findings before the apex court on July 10, which will then decide if the prime
minister can be sent packing for misleading the nation on his personal wealth.
Trading had commenced Wednesday on a negative note, with the benchmark shedding almost 242 points to
touch 45,152.63 points as the day's low within the first few minutes. However, it rebounded shortly after and
continued upward till it touched 46,356.78 points the day's high.
The index later experienced considerable selling pressure and settled at 45,413 points by close of trading.
Trading activity was led by the banking sector, with 31.5 million shares traded.
Senior analyst and head of research at Elixir Securities Pakistan, Hamad Aslam had earlier
told Dawn.com that the initial rally was driven mainly by sectors affected by a depreciation in the rupee.
The rupee's value against the dollar had fallen by almost Rs3, which had resulted in activity in the oil and gas,
textile and other relevant sectors, Aslam said. He added that the rally in these sectors had spilled over and
buttressed overall sentiment in the capital market in the first half of trading.
Talking about the political scenario and its impacts on the capital market, he said that "hot money" or
individual investors were still preferring to remain on the sidelines. However, he added, that those investing in
mutual funds were still buying in selected chips.
A total of 358 companies were traded on the exchange, with 157 advancing, 186 declining and 15 remaining
unchanged.
Overall volumes touched 204m shares, worth Rs12.5 billion.
1. TRG Pak: 17.43m shares traded (-4.97pc)
2. Bank of Punjab: 16.3m shares traded (+0.27pc)
3. Engro Polymer: 8.8m shares traded (-1.03pc)
4. WorldCall Telecom: 8.8m shares traded (-4.00pc)
5. Ittefaq Iron Industries: 7.7m shares traded (+1.84pc)
July 06, 2017
Stock rally loses steam on currencys plunge

KARACHI: The stock market closed almost flat on Wednesday after a strong intraday rally fizzled out on
selling pressure.
The benchmark KSE-100 index, which climbed by 964 points during the day, ended with gains of just 19.36
points, or 0.04 per cent.
The rally could not hold on as investors were spooked by political uncertainty and an unexpected devaluation
in the rupees value, dealers said.
Investor participation did improve as the number of shares traded during the day rose 7pc to 204 million,
however, it was still lower than the 10-day moving average of 236m shares. The value of shares traded jumped
29pc to Rs12.5 billion.
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The dominant theme on Wednesday was a drop of more than 3pc in the rupees value against the dollar, said
analysts at Intermarket Securities. It was rupees biggest drop in nine years, according to Bloomberg.
Shares whose values increased were Hub Power Company which rose 5pc, Pakistan Petroleum (PPL) 4.36pc,
Oil and gas Development Company 2.42pc, Pakistan Oilfields (POL) 4.12pc and MCB Bank 1.96pc, which
cumulatively added 265 points to the index.
On the flip side, Habib Bank (HBL) fell 2.94pc, Lucky Cement 2.09pc and Pak Elektron 5pc, taking away 168
points off the index.
From the sector perspective, utilities gained 2.1pc, energy 1.92pc and consumer staples 0.31pc.
According to JS Global Capital Ltd, the exploration and production sector added to its previous days gains as
oil prices continued their longest winning streak in more than seven years. POL and PPL were the major
gainers of the sector.
Mixed sentiment was witnessed in the banking sector as heavyweights HBL (down 2.94pc) and United Bank
(down 0.70pc) closed in the red, whereas MCB rose 1.96pc.
Selling pressure was seen in the steel sector as International Steels, International Industries and Amreli Steels
lost all dropped by 5pc.
July 07, 2017
Index sheds 590 points on political uncertainty

KARACHI: The stock market remained in a tight bear hug on Thursday as the KSE-100 index lost 590.31
points (1.30 per cent) to close at 44,823.11 points.
The index traded mostly on the lower side with maximum intraday loss of 853 points.
The turnover dipped to 147 million shares from 204m shares a day earlier with the trading value plummeting
to Rs8.4 billion from Rs12.5bn. Several dealers interpreted the low participation as weakholders of equity still
staying on the sidelines, which signalled that the downward momentum was not fully exhausted.
Possibly encouraged by a sizeable depreciation of 3.2pc in the rupee value against dollar on Wednesday,
foreign investors who had put buying on the hold purchased stocks worth $2.17m. The dollar may have
slipped due to what the finance minister termed a miscommunication, but foreigners could see it as an
administrative weakness and may be further driven away from the market, cautioned a major stockbroker
who asked not to be named.
On Thursday, one of the four biggest mutual funds was said to have sold $1.47m worth of stocks possibly to
meet redemption. But much of the selling was triggered by offloading stocks worth $4.20 from brokers
proprietary trading account, which represent trading by brokers in their own personal accounts.
Intermarket Securities calculated that the major contribution to downside came from Lucky Cement which
was down 2.43pc, HUBC 2.28pc, FFC 3.36pc, SNGP 4.72pc and POL 2.50pc.
Nestle added 1.96pc, ABOT 3.28pc and PKGS 1.31pc contributing 36 points to the index. From the sector
perspective real estate lost 3.42pc, industrials 2.9pc and utilities 2.33pc.
PSX concludes week on positive note as benchmark index

gains 399 points
The Pakistan Stock Exchange has concluded the current week on a positive note on the back of good
expectations from upcoming financial results announcements in several sectors, including oil and cement.
The capital market showed a recovery on Friday and landed in the green, with the benchmark KSE-100 Index
gaining 399 points, or 0.9 per cent, by the close of trading to reach 45,222 points.
Volumes were led by the communication sector, with 19.6 million shares traded, followed by banking and
engineering stocks with 17mn and 11.6mn shares traded respectively.
Senior analyst Ahsan Mehanti said that the stocks showed recovery "led by auto, oil and cement scrips" amid
speculation ahead of financial results due next week.
"Late session support witnessed in scrips across the board as fears waned over rupee depreciation and foreign
inflows renewed," he added.
The analyst further said that speculations ahead of annual payouts in blue chip oil, cement stocks and ADB
approval on $6bn projects favouring steel and cement stocks played a catalyst role in the bullish close.
Nearly 75.7mn shares changed hands by the end of the session, with a total worth of nearly Rs5.66bn.
Stocks of 354 companies were traded on the exchange, of which 236 gained in value, 85 declined and 13
remained unchanged.
TRG Pak Ltd: 15.82m shares traded [+4.60pc];
Pak Elektron: 9.50m shares traded [+0.26pc];
B.O.Punjab: 9.07m shares traded [+3.40pc];
K-Electric Ltd.: 7.02m shares traded [+0.75pc]; and,
Engro Polymer: 6.07m shares traded [+2.51pc].
Reference to above highlighted statement:

ADB to give $6bn for infrastructure
May 13, 2015
ISLAMABAD: The Asian Development Bank (ADB) has agreed to provide $6 billion over the next five years under the Country
Partnership Strategy (CPS), aligning its lending programme with the governments Vision 2025.
The new funding during 2015-19 was reviewed and finalised at a meeting co-chaired by ADB Vice President Wencai Zhang, who
is on a four-day visit, and Economic Affairs Division Secretary Saleem Sethi on Tuesday.
The financing will be helpful for overcoming energy crisis like ongoing construction of 660MW of Jamshoro coal project and
new road projects of Hasanabdal-Havelian and Gojra-Khanewal motorways, according to a press release of the Economic Affairs
Division.
The Country Operations Business Plan (2015-17) also came up for discussion in the meeting. The strategic thrust of the plan is
aligned with the interim country partnership strategy covering 2014-15 period.
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ADB and the government have implemented the country partnership strategy for 2009-2013, a $4.4bn lending programme to
facilitate structural change, promote investment, and improve the countrys institutional effectiveness.
In next five years (2015-19) focus will be on overcoming energy crises, construction of small and medium dams to generate
electricity ranging from 100MW to 2,000MW.
Saleem asked the ADB to support and enhance its funding in key sectors of the economy including energy infrastructure,
education and health.
He emphasised the need to explore multi-donor financing for mega energy projects of Dasu and Diamer Basha dams. He further
stated that the governments vision of connecting Pakistan with Central and West Asia will be an integral part of the country
partnership strategy.
A $197m loan to upgrade a national highway in Balochistan was also signed between the government and the Asian lender.
The project will rehabilitate 79km of the two-lane highway in Zhob-Mughalkot (N50) and another 128km in Qila Saifullah
Waghum (N70).
Over the past decades, the ADB has supported the governments initiative for equitable provincial development, said Mr
Zhang. This project is a step toward boosting economic growth, regional integration, and reducing poverty while bringing
substantial social and economic development for the people of Balochistan.
Published in Dawn, May 13th, 2015
July 08, 2017
Stocks manage to add 399 points in see-saw trade

KARACHI: The stock market remained in search of direction for most of the trading session on Friday with
the KSE-100 index hovering between the intraday high of 469 points and low of 274 points.
In the second session the benchmark index stayed about flat until the last half hour of trading when buying
emerged pushing the index to close at 45,222.15 points with gains of 399.03 points (0.89 per cent).
Oil stocks led the bounce followed by key blue chips Engro Corp up 3.4pc and Pakistan State Oil higher by
1.8pc, while some thought the eleventh hour buying was a result of investors bottom fishing to cherry pick
value stocks.
A dealer at Elixir Securities observed Market activity picked up in the second session on rumours that
investigative authority probing first family has received significant documentation to satisfy top courts
concerns.
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The volume remained thin at 132 million shares, against 10 days moving average of 223m shares. Among the
329 active stocks, just three second-tier shares, TRG, Pak Elektron and Bank of Punjab contributed 34m
shares or a quarter to the traded volume.
PPL in the E&P sector gained 3.95pc on the back of material information with respect to new well-head gas
pricing of Sui gas field. Steel stocks were also gainers with DSL 4.53pc, ASTL 3.27pc, INIL 3.26pc and ASL
3.44pc.
According to Intermarket Securities, major contribution to the upside came from ENGRO up 3.4pc, PPL
4.0pc, HBL 1.3pc, OGDC 1.6pc and DAWH 3.0pd, cumulatively adding 221 points.
UBL was down 2.7pc, HCAR 2.4pc and Nestle 1.0pc taking away 77 points.
Given uncertainty on the political front, market pundits thought that Fridays reversal would be tested by
Mondays JIT report, which would define near-term future.
Stocks lose 2.9pc in jittery week

KARACHI: The stock market remained under pressure in the outgoing week as the KSE-100 index lost 1,323
points (2.9 per cent) to settle at 45,222 points amid persistent political uncertainty and concerns on foreign
outflows.
Monday marked the highest-ever single-day decline in the index by 1,900 points. Another distraction came
mid-week in the form of depreciation of the rupee by a startling 3.1pc, which was a nine-year record single-day
decline, to Rs108.30.
Analysts at Arif Habib Ltd (AHL) said Although long awaited, given the decline in foreign exchange reserves
and the exacerbating position of the current account deficit, revised upwards to $10.6 billion in the first 11
month of 2016-17, a sudden plunge in rupee remained unexplained.
Reversal in the parity followed the next day with interbank closing of the week at Rs106.10, indicating
recovery of 1.9pc, from Rs108.30.
Meanwhile, AKD Securities commented that the record rupee depreciation built some impetus, but
summoning of the Sharif family members and the associate by the JIT added to the prevailing risk-off
sentiment.
As the appreciation in the dollar provided a short lived spike to index, major buying was witnessed in export-
oriented sectors (mainly textile), said dealers at Spectrum Securities.
According to Topline Securities, the lack of investor interest was also evident from the lacklustre volume and
value, which fell by 40pc and 39pc, respectively to 166 million shares and Rs9.2 billion ($88m) over the
previous week. The volume leaders during the week were TRG, EPCL, BOP, KEL and ASL.
Foreign investors offloaded $5.84m worth of securities during the week; against net buying of $9.2m the
earlier week ended June 22, which was largely absorbed by domestic individuals and insurance companies
with net buy of $13.69m and $13.68m, respectively.
During the outgoing week, foreigners bought stocks worth $5m in cement sector whereas selling was seen in
oil and gas exploration ($6.2m) and banks ($3.3m).
According to AHL, the downside in the index was led by commercial banks, down 546 points given the lower
than expected inflationary readings, signalling a delay in interest rate hike; decrease of 299 points in cement
sector and 160 points off the automobile assemblers.
At the other end, oil and gas exploration companies provided respite to the market with increase of 172 points.
PPL was the top index gainer with contribution of 144 points.
Other notable outperforms were PIBTL 24 points; Hubco 24 points; OGDC 23 points and MLCF 14 points.
Other than that, PIBTL, HUBC, OGDC and MLCF cumulatively added 85 points. While LUCK, HCAR, PAEL
pulled the index by 361 points, stated dealers at Elixir Securities. Performance leaders during the week
according to AKD Securities were PPL up 10.08pc, SSGC 5.66pc, MLCF 2.54pc, HMB 1.36pc and HUBC
1.34pc, while laggards included HCAR down 14.91pc, LUCK 9.92pc, FFBL 9.34pc, UBL 8.64pc and PSMC
7.61pc.
OUTLOOK: According to AHL Research, focus is now set on the submission of findings by JIT to the Supreme
Court on Monday, which should facilitate the direction of the ongoing political racket.
Any opportunity of dissipating political clouds could provide a new support to the market. The KSE-100 is
currently trading at a cheaper price to earnings ratio of 9.2x (2017) compared to Asia Pacific regional average
of 13.2x while offering twice as better dividend yield of 5.3pc versus 2.6pc offered by the region.
Analysts at AKD Securities said that the political uncertainty is expected to remain top of the investors mind
in coming week as July 10 is the stated deadline to submit JIT report to the Supreme Court. Barring any
unforeseen outcome, market may consolidate at these levels with investors expected to favour dividend paying
stocks, group holding companies and diversified conglomerates.
Elixir Securities stated that they believed that the conclusion of JIT investigation and continued political
uncertainties would keep the market under pressure.
However, further depreciation of the rupee shall guide the market in specific direction where power, textile
and export oriented stocks would remain in the limelight, while import-oriented stocks could witness
significant attrition in the prices.
WEEK 2: 10-14 JULY 2017

July 10, 2017
Challenge of dealing with shadows at PSX

Hopes have been raised that the Pakistan Stock Exchange will be able to attract a wider segment of investors
following the Chinese acquisition of 30pc stakes in the bourse and listing of PSX shares for trading.
Speaking at a ceremony held to celebrate these events at the PSX, Sindh Governor, Mohammad Zubair,
advised the exchange to build upon the momentum to widen investor participation.
The PSX shares listing has coincided with that of Itifaq Iron Foundry Limited.
Seven applications of companies in different fields of business and industry including life insurance, food,
pharmaceutical, technology, distillery, and brokerage houses are being processed by the PSX.
An investor with market insight estimates that about a dozen companies could be listed in the course of the
next one year.
Besides, he says, companies such as steel mills and cement producers are also issuing right shares to raise
funds for both expansion and working capital in cases where bank borrowing is expensive or difficult.
Currently the number of shareholders in the listed companies is stated to be very low, just over one million
and only 0.25m on Central Depository Company (CDC) records.
A number of factors are stated to have contributed to this state of affairs: a lack of public awareness about the
intricacies of stock trading and a negative perception that bourses are not an avenue for investment but a
place for gambling, a wide held view as apparent from market volatility and speculative activity.
How can the market escape volatility when the countrys
politics is so volatile?
A market guru questions How can the market escape volatility when the countrys politics is so volatile, the
economy is not immune to the governments inconsistent policies. All this have an impact on the financial
health of the listed companies.
Other reasons for low investor participation are stated to be limited outreach of securities houses and a low
rate of domestic savings.
It is felt that brokerage services should be extended to more cities where potential investors remain untapped.
Even in Karachi, which is supposed to be the countrys financial hub, there is a vast scope to increase business.
Ten financial institutions, including CDC, operating in the capital market are stated to have joined hands to
expand outreach and extend the one-window operation to attract potential investors. One may, however,
express some reservation about them setting up office in a place like Abbotabad.
Perhaps more problematic in attracting potential retail investors is the issue of liquidity and paltry free float of
shares.
Often it is difficult for an investor to exit the market without incurring a loss owing to the prevailing market
price of shares held by them, complains an investor.
Very few individuals have the skill to independently navigate the market and for them the best choice is to
invest in mutual funds.
But the size of the combined mutual funds portfolio is reckoned to be smaller than the volume of investments
made by the upper bracket of high-net-worth individuals or funds belonging to big business houses.
Critics say the stock market is narrow, shallow and lacks the required depth. That, they say, explains much of
the market volatility. The number of listed companies is 561 while hardly 50 are active.
Some of the best performing companies buy back their shares because of nominal float of their stocks and the
uneconomical cost of remaining listed.
For one reason or the other, the number of listed companies has remained stagnant for a long time.
In the United States, the situation is similar. JPMorgan just announced re-purchase of $19.4bn worth of
shares over the next year with the intention of increasing quarterly dividends from 50 cents to 56 cents.
The Bank of America will buy back $12bn in shares to raise its dividends by a stipulated 60pc to 12 cents.
The present course of development of bourses tends to deviate from their original objective to widen
corporate, industrial and business ownership.
Nor do market players in Pakistan seem to be very keen, as evident from the lack of a structured approach, to
attract more retail investors.
In India, banks used their countrywide network to increase the number of investors in the bourse by providing
end to end and stop to stop services for stock trading.
Speaking at the same event the Sindh governor addressed earlier this month, a leading light of the capital
market, Arif Habib, pleaded that the Chinese Consortium which has acquired 30pc stakes in PSX be allowed
to trade in the secondary market and raise its shareholding in the PSX to 51pc.
He says the Chinese can currently invest in listed shares and not the PSX shares. This anomaly should go in
order to provide the Chinese with a level playing field.
The investment guru has a grip on the pulse of the capital market where concentration rather than dispersal of
shareholders at this point of time is the name of the game.
jawaidbokhari2016@gmail.com
Published in Dawn, The Business and Finance Weekly, July 10th, 2017
Foreign stock investors wary of rupee fluctuation

The sudden and surprising decline of the rupee against the dollar by a hefty 3.1 per cent, in the opening hours
of interbank trade last Wednesday, left both the money and the stock markets in disarray.
That day, the dollar rose to Rs108.50, before settling at Rs108.25 by close, which was billed as the largest
single drop in the rupees value in nine years.
The Ministry of Finance distanced itself from the drama enacted solely by the State Bank of Pakistan (SBP). A
furious finance minister summoned a meeting of top bankers of leading banks a day later.
But what came of it was a mild statement of a communication gap between the SBP and the Ministry of
Finance, which was we were told by Finance Minister Ishaq Dar at the heart of the rise and fall of the
dollar against the rupee.
ADVERTISEMENT
In this day and age, a communication gap between responsible people in two cities of the same country, on
such an incredibly important issue, is hard to digest.
The Finance Minister stressed that the dollar-rupee parity would be determined by market forces, but in the
same breath pledged that the rupee would be maintained somewhere between Rs107 and Rs105. Whither the
SBP autonomy?
Stock strategists say that foreigners have been waiting for the
currency to find its true value before entering the market
The Pakistan Stock Exchange (PSX), which boasted of having given investors a return of 46pc the highest in
Asia and fifth highest in the world a year ago, has been humbled with a minor 2.6pc return in the January-
June half of 2017.
Barring the United Arab Emirates, China, Qatar and Russia, the PSX index has underperformed most of the
regional bourses.
Most market participants complain that foreign investors have been the spoilers of the market.
With 30pc of the free-float, they still remain a force to be reckoned with.
During the January-June period, foreign investors remained net sellers and offloaded stocks worth $333
million over eight times the $41m sell-off during the same period last year.
But the unkindest cut of all was the net selling of $81m by foreigners on May 31, on the eve of Pakistans re-
entry into the MSCI Emerging Market, in place of the consensus forecast of a huge inflow of $450m.
The fall of the stock market since has been unstoppable and we hear daily stories of investors who have been
ruined.
One big reason for foreign funds reluctance to enter the PSX has for long been touted by market pundits,
analysts and brokers as the foreigners belief that the rupee is over-valued.
Stock strategists at brokerage houses that cater to foreign clients say that foreigners have been waiting for the
rupee to find its true value, before entering the market, lest the rupee depreciates after they buy stocks and
they incur heavy losses.
Lesser dollars would buy more shares after devaluation, so why not wait.
Last Thursday, foreigners made an entry into the market to mop up stocks worth $7m, apparently on the faith
of the 3.1pc rupee devaluation.
A reversal the next day would find them trapped. Foreign investors, frustrated due to the uncertainty, might
now put their investment plans in PSX on the hold for a long time.
Soon after the first news of a devaluation of the rupee last Wednesday, stock brokerages started to release
reports on its effect on share prices.
Alfalah Securities (Pvt.) Ltd, a subsidiary of Bank Alfalah Ltd stated: We feel that a gradual/controlled
devaluation would be positive for the market, as foreign buyers who have been delaying purchases fearing
exchange losses would start to flock in.
And Alfalah Securities further worked out that in terms of market as a whole, 32pc of market capitalisation
would be positively impacted, 30pc would be slightly positively impacted and 16pc of capitalisation would be
neutral.
While it would be slightly negative for 16pc of the market and only 6pc would face a material negative impact.
Topline Securities stated that during the day (last Wednesday), Investors were busy repositioning their
portfolios evident by the sector specific movements.
The losers were the Engineering (-4.3pc), Refinery (-3.9pc), Cable and Electrical (-3.8pc), Auto Assemblers (-
3.3pc), Cement (-1.6pc) and Pharma (-1.4pc) sectors, which the brokerage said was likely on the belief that
the rupee depreciation may spike raw material costs.
And Elixir Securities stated that primarily, the Oil and Power sectors came into the limelight owing to their
dollar-indexed revenue streams where Hub Power rose to its upper circuit, Pakistan Petroleum was up by
4.4pc, OGDC gained 2.4pc and Pakistan Oilfields spiked 4.1pc.
Brokerage, Intermarket Securities, pondered that historically, the Pakistani markets risks have revolved
around politics, security and the currency.
While the security situation has considerably improved over the last few years, politics and the rupee are both
giving cause for worry, it said.
Published in Dawn, The Business and Finance Weekly, July 10th, 2017
Stock market sees strong rally, index climbs more than
1,000 points in bullish session
The Pakistan Stock Exchange (PSX) on Monday gained more than 1,000 points, close to 2.3pc, to regain
ground it lost last week.
The index settled at 46,274 points by Monday's close, slightly below the day's high of 46,332 points. It had
dropped sharply after opening to the day's low of 44,710 points, but rebounded immediately after.
Close to 120.6 million shares of KSE-100 companies were traded during the session, with a total worth of
Rs10.1 billion.
"Stocks closed bullish as investors speculated that the prime minister may be acquitted in the Panamagate
case," observed veteran analyst Ahsan Mehanti.
"Mid-session support was seen in scrips across the board after fears waned over rupee depreciation and
renewed foreign inflows," he added. "Likely payouts in blue-chip stocks and the Asian Development Bank's
approval of $6bn development projects favoring steel and cement stocks played a catalyst role in
the record close."
A total of 364 symbols were active on the PSX on Monday, out of which 273 closed green, 75 declined and 16
remained flat.
Activity was led by commercial banks, with engineering, technology, cement and chemical stocks rounding off
the top 5 sectors traded.
1. Bank of Punjab: 21.8m shares traded (+4.76pc)
2. TRG Pak Ltd: 16.8m shares traded (+4.98pc)
3. Summit Bank: 10m shares traded (+22.2pc)
4. Azgard Nine: 9.4m shares traded (+6.61pc)
5. Aisha Steel Mill: 9.3m shares traded (+5.12pc).

Index surges 1,051 points as JIT submits report
KARACHI: A relief rally right before the close of the market on Monday saw the KSE-100 index propel
1,051.66 points (2.33 per cent) to settle at 46,273.81.
The benchmark opened the session on a negative note as the much-awaited JIT report was scheduled to be
submitted on Monday. Most market participants and analysts said the order of the Supreme Court that
adjourned the proceedings until next week went well with the investors and triggered buying on attractive
valuations as the index had already plunged 14.8pc from its May 25 peak.
The figures released by the National Clearing Company of Pakistan revealed that lead buyers on Monday were
mutual funds who cherry- picked stocks worth $15.4 million. While individuals ditched shares worth $14.7m,
the sell-off seemed to have been absorbed by the brokers proprietary accounts, which showed net purchases
of $8.1m.
Market participation remained on the higher end with 235m shares traded against 10 days moving average of
219m shares and 78pc higher than last Fridays volume of 132m shares. Traded value also mounted 84pc to
Rs12.8 billion, from Rs7bn last trading session. Out of the 60 stocks which shed values only seven shares were
index components. BOP, TRG and SMBL contributed 49m shares to the aggregate volume of 235m shares.
The top 10 index point leaders, according to Topline Securities, were LUCK up 3.8pc, ENGRO 3.6pc, PPL
4.2pc, MCB 3.4pc, HBL 1.7pc, HUBC 2.5pc, SNGP 5pc, DGKC 3.8pc, PSO 3.6pc and NML 4.6pc, adding 502
points.
Steel saw interest as ISL hit upper circuit. The relief rally should extend across the next few days before the
feel-good factor is challenged towards the end of the week, as the next hearing date approaches, stated
Intermarket Securities.
Stock market takes 2,000-point nosedive on back of political
uncertainty
The Pakistan Stock Exchange (PSX) witnessed a bloodbath on Tuesday on the back of political uncertainty a
day after a joint investigation team (JIT) report on the ruling Sharif family's financial history was
submitted to the apex court, taking a 2,153-point nosedive as the day's trading commenced.
Within minutes of the market opening, the benchmark KSE-100 index had plunged over 1,300 points, going
from 46,273 at 9:30am to 44,969 by 9:35am a drop of nearly 2.83 per cent.
By around noon, the market had fallen deeper to 44,221 points, a drop of 4.43pc or 2,052 points. By close of
trading, the market's losses had swelled to 2,153 points (4.65pc). Total KSE-100 volumes clocked in at 104
million shares, worth Rs8.24 billion.
Both volumes and share value were markedly lower than the day earlier, when the market had risen 1,000
points on speculations that the JIT had found nothing incriminating against Prime Minister Nawaz Sharif.
Of the 368 symbols traded on Tuesday, only 24 advanced and 10 remained unchanged. The rest closed red.
Most of the top scrips traded closed at or near their lower locks the maximum 5pc (for stocks worth Rs20 or
more) or Re1 depreciation allowed in a stock's price before trading in it is halted for the day.
The index had witnessed a great deal of uncertainty in the days leading up to the submission of the JIT's
report.
On the first day of the fiscal year, the benchmark index took a 4pc plunge, shedding 1,900 points as political
uncertainty clouded the outcome of the JIT probe.
It was the first time the index had tanked over 4pc since in August 2015, when China depreciated the Yuan,
and before that in August 2014, during the Pakistan Tehreek-i-Insaf's sit-in in Islamabad.
K-Electric Ltd: 17.4m shares traded (-5.71pc);
TRG Pak Ltd: 9.7m shares traded (-4.98pc);
Aisha Steel Mill: 9.3m shares traded (-4.97pc);
B.O.Punjab: 9.1m shares traded (-8.26pc);
Engro Polymer: 6.9m shares traded (-4.97pc).
Doomsday at the stock exchange
Brokers monitor share prices at the Pakistan Stock Exchange on Tuesday. Investors disposed of thier shareholdings in
droves as opposition parties demanded the resignation of Prime Minister Nawaz Sharif following a damning
investigation into his family assets.Online
KARACHI: Stock investors were in for a rude awakening on Tuesday as the KSE-100 index took a plunge of
1,000 points even before the opening bell had died down.
As the investors stared at the trading board in disbelief, the market saw shares close at their lower circuits in
droves. It surely is not the day for the faint-hearted, murmured an old-timer who almost fell on the bench in
the trading hall.
By the close of trading, the benchmark index tanked 2,153 points, the biggest-ever single-day decline.
The 4.65 per cent decrease is the biggest decline in percentage terms since the last great fall on Feb 25, 2009.
The market has dipped 7.5 pc since January. This appears quite bearable, although the market has dropped
16.2pc from the index peak on May 24. On Tuesday, Rs403bn was wiped off the shareholders wealth.
Only a day earlier, the market seemed to have scored a relief rally with a gain of 1,052 points or 2.33pc. The
rally on Monday was led by mutual funds, which turned out to be massive sellers on Tuesday when
they disposed of stocks worth $11.6 million. Banks also jettisoned shares worth $11.1m. Other local
participants cherry-picked, including individuals who bought back stocks worth $3.15m to cover their Mon-
days oversold positions of $14.7m.
Foreign investors followed the old market maxim: Its time to buy when there is blood on the streets. They
bought stocks worth $11.49m, much of it being cherry-picking of heavyweights that had attained attractive
valuations following consistent bleeding since their peak on May 25.
According to a stockbroker, two of the three top asset management companies sold equities on Tuesday
ostensibly to either meet redemptions or secure their capital-protected funds. Several stockbrokers and
dealers conceded that retail investors who were dabbling in second- and third-tier low-priced stocks must
already be ruined as they would have suffered a loss of 30-40pc on their portfolios.
Pakistan Stock Exchange CEO Haroon Askari said he would not comment on day-to-day volatility of the
market. But he noted that the risk management systems were strong enough to handle the volatility. He
observed that there was no clearing house default and, although margins would be collected in the morning by
National Clearing Company (NCCPL), there were no indications of any default so far. The PSX collects
margins for three days around 15pc and any shortfall in mark-to-market is collected on a daily basis, he said.
The Securities and Exchange Commission of Pakistan (SECP), which is the apex regulator of the equities
market, is deeply mired in the political crisis engulfing the government.
The current situation is not related to market mechanism, correction or any fundamental reason. It is only a
reaction to the ongoing political situation, a senior official of the SECP told Dawn. The SECP cannot
intervene in daily volatility, nor is there any plan or discussion to impose a floor, he added.
A stockbroker who asked not to be named claimed that for all their faults, the SECP and its officials had
tightened regulations, improved reporting standards and closely monitored the brokers. Crackdowns had also
struck fear in the hearts of the brokers who had put an end to the practice of in-house badla, which led to
large-scale defaults by the brokers in the previous market declines.
Raza Jafri, executive director at Intermarket Securities, said it was too early to say if Tuesdays steep fall would
turn out to be a trend or the market would recover. It would be childish to form an opinion on a days trend
just as a single swallow does not a summer make, he said. He pointed out that the valuations had turned
attractive though.
With the way this market has closed, the downslide is likely to continue tomorrow, particularly in initial
trading. The problem is that there seems to be no viable solution to the political impasse and the risk of
confrontation is not too far away. Bottom fishers may be on the lookout but we think this might be akin to
catching a falling knife, analysts at Intermarket Securities said.
Ten biggest index point decliners were Habib Bank, UBL, Lucky Cement, Engro Corp, OGDC, Hubco, PPL,
MCB, FFC and DGKC.
Bearish trend continues at PSX as benchmark index sheds 328
points
The Pakistan Stock Exchange landed in red on Tuesday as the capital market failed to recover from Tuesday's
negativity, with the benchmark KSE-100 shares index shed 328 points or 0.74 per cent to reach 43,792 points.
The benchmark tested day's high at 44,206 points just 85 points above the session's opening in first 10
minutes just to dive down immediately. It touched the bottom at 43,027 points level on the back of political
uncertainty.
Volumes were led by the commercial banking sector with almost 30 million shares traded. The power and
cement sectors followed the pursuit with 24.3mn and 22.6mn shares traded respectively.
Senior analyst Ahsan Mehnati said, "Stocks closed lower amid pressure in scrips across the board as investors
weight outcome of the panamagate case after the joint interrogation team (JIT), that probed business affairs
of the first family, submitted its report to the apex court."
He said that the late session support in oil, banking, and textile stocks supported the index to close above
session low after global oil prices retreat, reports of surging banking deposits, upbeat data on textile exports
and auto sales data.
"Concerns over surging trade deficit and external account imbalance played a catalyst role in bearish close at
the PSX," he added.
126.79 million shares changed hands by the end of the session, with a total worth of nearly Rs10.5 billion.
Stocks of 346 companies were traded, of which 141gained in value, 192 declined and 13 remained unchanged.
K-Electric Ltd: 19.92m shares traded [+4.97pc].
Engro Polymer: 8.49m shares traded [-2.69pc];
Sui North Gas: 8.32m shares traded [-4.72pc]; and,
B.O.Punjab: 7.30m shares traded [+1.98pc].
Index drops to years lowest level

KARACHI: Stocks continued the losing streak on Wednesday with the KSE-100 index recording a loss of 328
points or 0.74 per cent to close at 43,792.19, the lowest level in 2017.
The benchmark has shed 17pc value since its peak on May 24.
Investors caught their breath as the index started to sink as soon as trading began. It lost 1,093 points in the
first two hours of trading, but found support over the 43,000-point level. It pared losses as value-hunters
cherry-picked oil, banking and fertiliser stocks.
The index managed to claw back 700 points mid-session from its intraday low, prompting pundits to
comment that the market had yet to find its bottom.
Market participation improved with the volume rising 16pc to 215 million shares from a day before. Major
contribution to market participation came from second-tier stocks like K-Electric, TRG Pakistan and Engro
Polymer and Chemicals. The traded value surged 27pc to Rs12.6 billion from a day ago.
Top index point decliners included Lucky Cement that went down 3.6pc, Hub Power 3.3pc, Engro Corp 2.8pc,
D.G. Khan Cement 5pc and Sui Northern Gas Pipelines 4.7pc, shedding 265 points from the index. Oil and Gas
Development Company went up 4.4pc, Habib Bank 2pc, Fauji Fertiliser 5pc, Pakistan Petroleum 3.1pc and
Kot Addu Power 3.6pc.
The cement sector lost 169 points, oil marketing companies 71 points and auto assemblers 30 points. The
exploration and production sector added 93 points while banks contributed 10 points.
Value-seekers found the opportunity to selectively buy names in exploration and production, fertiliser and
banking sectors, stated analysts at Intermarket Securities. They added that the immediate-term outlook
depends on politics, although there are pockets of value that will selectively see buying interest.
July 13, 2017
PSX witnesses dull session as benchmark index closes nearly
flat
The Pakistan Stock Exchange ended nearly flat on Thursday, with the benchmark KSE-100 index shedding
only 8.6 points, or 0.02 per cent, by the close of the trading session to reach 43,783 points.
The benchmark tested day's high at 44,121.30 points in first 30 minutes just to dive down gradually. It
touched the bottom at 43,060.98 points level as day's low. However, the market rebounded in the second half
to close just eight points below the day's opening.
Volumes were led by the power sector with almost 21 million shares traded. The banking and communication
sectors followed the pursuit with 17mn and 12mn shares traded respectively.
Besides, 76.51 million shares changed hands by the end of the session, with a total worth of nearly Rs6.12
billion.
K-Electric Ltd: 19.73m shares traded [+0.44pc].
TRG Pak Ltd: 8.42m shares traded [-1.52pc];
B.O.Punjab: 4.71m shares traded [+1.68pc];and,
Summit Bank: 4.36m shares traded [-3.44pc].
Index flat amidst choppy trading
KARACHI: Resisting closing in the deep red, the benchmark KSE-100 index settled flat on Thursday with a
minor downward movement of 8.64 points to 43,784.
Trading remained choppy with the index moving widely between the intraday high by 329 points and low by
731 points. The market opened on a bullish note, carrying momentum from the preceding days late buying
spree. It helped the KSE-100 index climb 329 points within the first half an hour.
But that triggered profit-taking and the benchmark sank in the red. Value-hunters who had been on the
lookout for such a moment re-entered the market to pick up select scrips, pulling the index up in the last 30
minutes of trading.
Several brokers said the thaw could be misleading as thick dust still permeated the political scene. Investors,
as expected, remained cautious and refrained from participating aggressively due to uncertainty on the
domestic political front, said analysts at Elixir Securities.
Top index point decliners included Nestle Pakistan that went down five per cent, D.G. Khan Cement 3pc,
Dawood Hercules 2.6pc, Oil and Gas Development Company 0.9pc and Charat Cement 4.2pc. Habib Bank
added 2.2pc value, Pakistan Tobacco 5pc, MCB Bank 1.2pc, Lucky Cement 1pc and National Bank 3.5pc.
The trading volume decreased 42pc from a day ago to 126 million shares. Second-tier stocks, like K-Electric,
TRG Pakistan, Engro Polymer and Chemicals, Bank of Punjab and Summit Bank, remained volume leaders.
The traded value also decreased 42pc to Rs7.3 billion.

Analysts at JS Global stated that in the last 30 minutes of the session, value-seeking investors started
accumulating MSCI stocks, which led the index into the green zone.
July 15, 2017
Index recovers 554 points on institutional buying
KARACHI: The stock market opened on a weak note on Friday, but the KSE-100 index added 554 points (1.27
per cent) to close at 44,337.44 on institutional buying in the second session.
Despite higher activity in the second half, the full-day turnover remained muted at 112 million shares against
the 10-day moving average of 183m shares. The traded value also declined to Rs5.96 billion from Rs7.3bn a
day ago.
Elixir Securities said the first session saw choppy trading as stocks continued to struggle for direction amid
very selective participation.
Activity, however, improved from the onset of the second session as local institutions reportedly turned
buyers and cherry-picked cement, financial and select index names, it said.
JS Global commented that the recovery witnessed in the last hour of the session was because of value-seeking
investors who started accumulating MSCI stocks. The banking sector contributed 156 points to the index as
MCB Bank went up 0.9pc, National Bank 1.72pc and Habib Bank 1.28pc.
Pak Suzuki went down 1.02pc, Honda Atlas 1.04pc and Indus Motor 1.56pc because of the negative impact
from the revision of customs values for replacement auto parts.
Oil and Gas Development Company gained 0.7pc, Pakistan Oilfields 1.51pc and Pakistan Petroleum 1.59pc.
The next key checkpoint remains Mondays court hearing, stated dealers at Intermarket Securities. Politics
notwithstanding, the markets valuations are getting attractive, they added.
Ahsan Mehanti of Arif Habib Corp observed that surging global crude prices, renewed foreign inflows and the
prime ministers rejection of the resignation call led to a strong market close.
Stock market plumbs years lowest level as political turmoil
persists
KARACHI: Political uncertainty, submission of the JIT report and adjournment of Supreme Court decision to
next week, resulted in adding to the pervading gloom over the investor sentiments. KSE-100 index declined
885 points (1.96 per cent) and settled at the end of the week at 44,337 points.
During the week, the market also saw one of the worst sessions since 2009 when the index tanked 4.7pc and
also hit its calendar year to date low at 43,043 points.
According to Arif Habib Ltd, the downside was led by cements (176 points) due to unimpressive cement
dispatch numbers for June, due to Ramazan and monsoon rains; power generation and distribution (89
points); fertilisers (86 points); automobile assemblers (84 points) as car sales slowed down in June and
shorter working days in Ramadan; Oil & Gas Marketing Companies (OMCs, 76 points).
Analyst at Topline Securities Adnan Sami Sheikh calculated that on the sector front declines were seen in:
auto parts (7.7pc), transport (6.3pc), auto assemblers (5.8pc) and food (3.6pc) underperformed the broader
market, while OMCs (2.3pc), engineering (2pc), cement (1.8pc) and fertiliser (1.6pc) were in line; while
Exploration & Production (E&P) and banks fared slightly better shedding at the most 1pc.
On scrip-wise basis, the biggest falls were noted in UBL (82 points), Hubco (77 points) DG Cement (86 points)
Dawood Hercules (59 points) and Engro Corp (56 points.
AKD Securities noted major losers during the week were HCAR (12.64pc), PSMC (10.56pc), CHCC (9.36pc),
ICI (7.08pc) and LOTCHEM (6.93pc). Gainers, meanwhile, were GWLC (4.43pc), EFERT (3.99pc), NBP
(3.93pc) PPL (2.99pc) and FFC (2.47pc).
The volumes rose 5.2pc over the previous week to 175 million shares in wild intra-day moves. Traded value
rose 3.5pc to Rs9.7 billion. Volume leaders during the week were: KEL (68.63m shares), TRG (55.32m shares),
BOP (46.74m shares), EPCL (34.74m shares) and ASL (29.47m shares).
Foreign investors were net buyers of $0.99m worth of equity during the outgoing week against net sales of
$5.83m the preceding week. Foreign buying was concentrated in banks ($4.0m) and E&Ps ($1.4m), while
foreigners sold $3.4m of cement, $1.9m worth OMCs and $1.3m of power generation stocks.
Among domestic players, individuals remained major sellers of $9.96m while insurance companies were the
largest domestic buyers of shares valued at $15.7m
Among major news Moodys affirmed B3 rating as risks remain; trade deficit widened by 37pc to $32.5bn;
according to the State Bank of Pakistan, the nations total liquid foreign exchange reserves amounted to
$1.44bn on July 7, up $80m from a week ago; foreign workers remittances during fiscal year 2017 (FY17) fell
3.08pc year-on year (YoY) to $19.30bn; K-Electric unveils $1bn plan to add 900MW into the system; cement
dispatches during FY17 rising to 3.71pc YoY to 40.315m tonnes and total domestic car sales during FY17 going
up 2.55pc YoY to 185,781units.
Outlook: According to Arif Habib Ltd, the market is likely to remain choppy next week as the investor
attention remains focused on Supreme Court verdict over the JIT findings. In the short term the prevailing
sentiments will supersede the market fundamentals. AKD Securities wrote in its weekend report, Investors
are expected to remain in tunnel-vision mode, affixed on Mondays hearing in the Supreme Court. It added
that volatility was expected with thin volume pushing on either side. Next support to the market was expected
from June-end result season with investors aligning their portfolios to expectations on earnings and payouts.
Elixir Securities also thought the market was expected to remain volatile till clarity emerged on the political
front. The brokerage stated, however, note that KSE-100 index has already corrected by 16pc since its all time
high record on May 24th, and added that once the dust settles, the market could again start focusing on
fundamentals where the key theme over the next one month will emanate from the upcoming result season.
WEEK 3: 17-21 JULY 2017
PSX commences week on cautious note, benchmark index adds
186 points
The Pakistan Stock Exchange (PSX) commenced the trading week on a cautiously positive note, with the
benchmark KSE-100 Index advancing 186 points, or 0.42 per cent, to touch 44,523 on Monday.
The market touched the day's low at 43,975.12 points in the initial 20 minutes of the trading session. However,
it rebounded immediately after to remain range-bound activity throughout the day. The benchmark tested the
day's high at 44,630 points near the end of the session.
A report issued by JS Global noted that overall volumes were extremely tight during the session, clocking in at
75 million shares the lowest this year.
Likewise, only 34m shares of KSE-100 companies changed hands during the session, with a total worth of
JS Global added that the cement sector stocks saw some upside potentially due to news of government
initiatives in increasing access to affordable housing finance in the country.
The engineering sector led activity at the bourse, with 9.2 million shares traded; it was followed by the
banking and the power sectors with 7.7m and 7.5m shares, respectively.
"Stocks closed higher amid thin trade led by oil and banking scrips on strong valuations," said analyst Ahsan
Mehanti.
He was of the view that investors' speculation over the outcome of the ruling Sharif family's response to the
Supreme Court on the joint investigation team's probe, surging global crude prices and foreign inflows played
a role in the higher close.
Stocks of 356 companies in all were traded on the exchange, of which 174 gained in value, whereas 165
declined and 17 remained unchanged.
K-Electric Ltd: 5.7m shares traded [-0.30pc];
Dewan Motors: 4.3m shares traded [-4.85pc];
B.O.Punjab: 8.2m shares traded [-3.01pc].
Stocks manage modest gains amid thin volumes
KARACHI: Complete lack of interest in trading at the stock market saw the volume dip to three-year low at
just 75 million shares on Monday.
The benchmark KSE-100 index moved narrowly between the positive and negative. However, it closed with
gains of 185.77 points (0.42 per cent) at 44,523.21 on late buying. Intraday, the index briefly breached the
44,000-support level.
Dealers at Elixir Securities said that trading remained range bound as participants were glued to the TV
screens, watching the Supreme Court proceedings. Lack of flows from both local and foreign institutional
investors kept stock prices down. Uncertainty gave rise to indecision and no one wanted to take fresh
positions until the dust had settled.
Analyst Adnan Sami Sheikh at Topline Securities said the trading volume thinned to the lowest since Aug 22,
2014, when calls for the incumbent PMs resignation were first sounded by the opposition amid alleged
election rigging.
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On Monday, traded volume shrank 33pc to 3-year low at 75.3m shares while traded value contracted 30pc
over the previous session to Rs4.2bn. Third and second-tier stocks were on the volume leaders list with KEL
(+0.30pc) taking the top slot with dealings in 7m shares, followed by Engro Polymer showing 6m shares
changing hands.
Top contributors to the index were BAHL which gained 4.3pc, HUBC 1.8pc, Lucky 1.5pc, UBL 1.3pc and OGDC
1.4pc.
While HBL declined by 0.7pc, PPL 1.1pc, JLICL 4pc, PMPK 4.3pc and Engro 0.3pc taking away 62 points.
Sector-wise, pharmaceuticals added 36 points, power and banks 34 points each, cements 28 points,
exploration and production (E&P) 27 points. Textile shed 8 points. Analysts at JS Global said the E&P sector
stocks were up due to increase in oil prices as a slowdown in the growth of rigs drilling in the United States
eased concerns of surging shale supplies.
July 18, 2017
Stocks surge 1,113 points as bulls return to market

Stocks surged as the Pakistan Stock Exchange (PSX) continued trading on a positive note, with the benchmark
KSE-100 Index advancing 1,113 points, or 2.5 per cent, to touch 45,636 on Tuesday.
The market touched the day's high at 45,669 points towards closing, while the day's low of 44,517 was
recorded early during the day.
Close to 84 million shares of KSE-100 companies, worth over Rs7.1 billion, were traded during the day.
"KSE100 remained upbeat today as media coverage of the second day of court proceedings indicated that the
odds of the incumbent prime minister being ousted in a hasty fashion were slimming down," read a note from
Topline Securities. "The market was further spurred by anecdotal reports suggesting that a petition seeking
disqualification of the Punjab chief minister (the PMs brother) was also dismissed."
The engineering sector led the day's trading with 18.7m shares, following Monday's trend. Commercial banks
and technology followed closely with 17.5m and 15.5m shares traded respectively.
"Stocks opened on a positive note yet traded lackluster in the early hours," read a note from Elixir Securities.
"However, activity in index names started to pick up as the day progressed on buying interest, reportedly from
local institutional investors."
Stocks of 372 companies were traded, with 296 of them gaining value. Stocks of 66 companies declined while
those of 10 companies remained unchanged.
K-Electric Ltd: 8.9m shares traded [+1.21pc];
Aisha Steel Mill: 7.2m shares traded [+3.12pc];
Engro Polymer: 6.9m shares traded [+4.92pc];
Sui South Gas: 6.2m shares traded [+3.85pc].
July 19, 2017
Stocks soar 1,113 points on buying across sectors
KARACHI: The benchmark index gained 1,113 points (2.5 per cent) on Tuesday to close at 45,636, with buying
seen across all major sectors and sideboard items.
Investor interest, which was low a day ago, received a boost after some media reports suggested that Prime
Minister Nawaz Sharif may not be dismissed in haste by the Supreme Court. Moreover, the Lahore High Court
also dismissed a petition seeking the disqualification of Punjab Chief Minister Shahbaz Sharif.
Ten top KSE-100 index point contributors included United Bank, which went up 3.4pc, followed by Lucky
Cement 3.4pc, Oil and Gas Development Company 3.4pc, Engro Corp 3.3pc, Hub Power 2.8pc, Pakistan
Petroleum 2.8pc, Sui Northern Gas Pipelines 4.9pc, MCB Bank 2.3pc, Dawood Hercules 4.1pc and Habib Bank
0.9pc, adding 495 points in total.
Only eight stocks closed lower, eroding 13 points. Banks added 228 points, cements 149 points, exploration
and production 145 points and fertilisers 142 points.
Dealers at Elixir Securities pointed out that stocks opened on a positive note, yet recorded lacklustre trading in
early hours. However, activity started to pick up as the day progressed on buying interest reportedly from local
institutional investors. All major sectors, including financial, cement, oil and fertiliser, garnered investor
interest.
However, some market pundits thought the bounce-back for one day signified nothing. For a consistent
upside trend, investors will have to watch political developments for a few days, said one analyst.
The local equity market came off by 5pc in July and is down 16pc from its peak on May 24. This is one of the
steepest falls in the last 12 years, noted analysts at Topline Securities.
Figures provided by National Clearing Company of Pakistan showed that except mutual funds that bought
stocks worth $4.27 million, all foreign/local individual/institutional investors took profit instead of building
new positions.
July 20, 2017
Index loses 218 points after three-day gains

KARACHI: Following three days of continuous gains, the KSE-100 index on Wednesday shed 218 points (0.48
per cent) to close at 45,418 points.
The market remained volatile throughout the day, making an intraday high of 172 and low of 339 points.
The volume ticked up 5pc over the previous session to 165.5 million shares, while the traded value slipped 1pc
to Rs8.9 billion.
Volume leaders were again mid-tier stocks. The market appears to be caught in limbo, where valuations are
attractive and earnings growth is projected to be strong, and yet the unclear outlook for politics cannot be
ignored, stated analysts at Intermarket Securities.
Engro was down 2.5pc, UBL 1.4pc, Lucky Cement 1.4pc, Hubco 1.5pc and OGDC 1.3pc which collectively
erased 153 points from the index.
While DAWH was up 4pc, PPL 1.4pc, MARI 2.7pc, INDU 2.7pc and APL 4.4pc adding 99 points.
On the sector front, cement bled 81 points, banks 52 points, power 45 points, fertiliser 37 points; while OMCs
added 14 points and autos 12 points.
Market commentator Ahsan Mehanti of Arif Habib Corp stated that the stocks closed lower amid pressure in
blue-chip stocks on investors fear over foreign outflows and dismal economic data. Late session support
remained in blue chip oil and banking stocks on surge in global oil prices and reports of increase in banking
deposits. Concerns over the outcome of Supreme Court review over JIT probe in Panamagate played a catalyst
role in bearish close, he said.
July 20, 2017
Bears dominate trading as PSX sheds 359 points
Bears continued a slow rout at the Pakistan Stock Exchange (PSX) on Thursday, with the benchmark KSE-100
index losing 359 points, or 0.79pc, to close at 45,060.
The market touched the day's high at 46,087 points within the first 30 minutes of trading, but continued
shedding points for the rest of the day to reach the day's low at 44,972 points.
"Stocks closed lower amid concerns over [...] $12.1 billion current account deficit for fiscal 2017 and cautious
activity ahead of the Supreme Court hearing tomorrow over the joint investigation team probe," Ahsan
Mehanti of Arif Habib Corporation said.
"The market opened gap up in the morning and the KSE-100 Index edged up by as much as 1.3pc within the
first 15 minutes of trading as participants cheered overnight news that Prime Minister Nawaz Sharif and his
family had acquired and submitted 'convincing' proof to the Supreme Court to support their claim of no illegal
action in financial dealings," a note by Elixir Securities read.
"The index, however, couldn't sustain gains and declined to not only fill the gap but extended losses further on
profit-taking and general lack of buying interest, especially by local institutional investors."
More than 67 million shares of KSE-100 companies, worth over Rs6.4bn, were traded during the day.
The engineering sector dominated the session with 19.2m shares traded. Commercial banks and technology
followed with 17.3m and 16.6m shares traded.
Aisha Steel Mill: 8.04m shares traded [-4.02pc];
Dewan Motors: 7.20m shares traded [-4.99pc];
Azgard Nine: 6.22m shares traded [-3.98pc].
July 21, 2017
Stocks post fresh losses in jittery trade

KARACHI: The stocks extended losses on Thursday with the KSE-100 index shedding another 359 points
(0.79 per cent) to close at 45,059.93.
The index edged up by as much as 1.3pc within the first 15 minutes of opening of trade. However, profit-taking
across all sectors emerged so that it witnessed 1,000 points fall from the intraday peak.
The rise and fall of the stocks reflected investors sentiments.
Elixir Securities concurred, saying that market participants cheered overnight news that the Sharif family had
acquired and submitted convincing proof to the Supreme Court of Pakistan supporting their claim of no
illegal action in financial dealings.
The volume slipped 11pc over the earlier day to 148 million shares, while the traded value dropped 3pc to
Rs8.6 billion. The figures released by the National Clearing Company of Pakistan in the evening showed sell-
off by foreign investors; individuals and mutual funds.
Intermarket Securities calculated that the major contribution to index downside came from DAWH which was
down 4.76pc, Engro 1.78pc, Hubco 1.53pc, UBL 1.15pc and BAHL 1.75pc taking away 142 points.
On the flip side, OGDC gained 1.55pc, POL 1.16pc and MCB 0.60pc adding 50 points to the index.
On the sector front, fertiliser shed 97 points, banks 56 points, cement 55 points, power 24 points and OMC 23
points, while E&Ps added 25 points.
Ahsan Mehanti at Arif Habib Corp stated the stocks closed lower amid concerns over dismal economic data.
Speculations ahead of State Bank of Pakistan monetary policy announcement on Saturday invited early
session rally.
Published in Dawn, July 21st, 2017
Index gains 234 points on institutional buying

KARACHI: Stocks closed with gains on Friday as institutional investors decided to take positions, attracted by
low valuations. The KSE-100 index closed higher by 234.46 points (0.52 per cent) at 45,294.39.
The broader benchmark remained volatile during the day, owing to continuous political uncertainty along
with the news of detention of the SECP chairman by the FIA. The index touched intraday high of 322 and low
of 512 points.
The market opened on a negative note and extended the earlier days dismal trend with low volumes in the
first half of the trading session. A sharp recovery was seen in the second half. Positivity came as the Supreme
Court concluded the hearing of the Panamagate case and reserved its judgment, commented analysts at JS
Global.
The volume stood at 122 million shares down from earlier days 148m shares. Except International Steels and
Sui Northern Gas, other top eight volume leaders were the second-tier stocks.
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Major contribution to index upside came from MARI which gained 4.44pc, UBL 1.24pc, PPL 1.32pc, MTL
2.97pc and TRG 4.77pc, adding 110 points.
The reports of Rs185 billion loans to be paid off to DISCOs did not bring much impact to the power sector as
scrips in the sector witnessed a mixed trend. Investors interest was seen in steel sector where ISL rose 3.10pc,
INIL 2.10pc and ASL 1.34pc.
Ahsan Mehanti at Arif Habib Corp stated that the stocks closed bullish after the government resolved to accept
the verdict of the apex court in the Panama Papers case.
Published in Dawn, July 22nd, 2017
Stocks recover losses in cautious trade
KARACHI: The stock market managed to break the four-week losing spree in the outgoing week with the KSE-
100 index showing recovery of 957 points (2.2 per cent) to settle at at 45,294.
The investor sentiments were dictated by the developments on the court hearings of Panamagate case. As the
Supreme Court reserved the decision, investors kept speculating on the outcome.
Trading remained choppy throughout the week, though some domestic investors threw caution to the winds
and stepped in to accumulate scrips with attractive valuations. The daily average volume shrank 23pc over the
preceding week to 134 million shares while the traded value contracted 22pc to Rs7.5 billion.
Foreign investors offloaded stocks worth $2.01m against net outflow of $0.98m in the preceding week.
Foreign selling was concentrated in oil marketing companies ($2.3m) and Power ($1.6m), while inflows of
$2.5m were recorded in the cement sector. Among local participants, insurance companies were the largest
domestic buyers for second week running with net purchases of $8.9m. Banks purchased shares worth $0.7m,
while individuals sold $5.7m worth equity.
According to Arif Habib Limited, during the week oil and gas exploration companies added 269 points to the
index amid slight recovery in oil prices mid-week. It was followed by commercial banks with gains of 201
points.
Oil and gas marketing companies rose 126 points; automobile assemblers were up 47 points while refineries
added 37 points to the index. On the flip side, bearish pressure was seen in chemicals, which fell 7 points; food
and personal care products down 3 points and textiles shedding 2 points.
According to Elixir Securities, the participants were driven by value hunting with OGDC, UBL and PPL adding
the most to the index. The biggest loser of the week was Engro, down 229 points, as the company fell short of
market expectations with respect to their board meeting.
In terms of percentage, Topline Securities calculated that the refineries were up 6pc, E&Ps 5.5pc, auto
assemblers 4.6pc, OMCs 4.2pc, engineering 3.7pc, tobacco 2.8pc, pharma 2.2pc, cable and electric 1.9pc and
banks 1.5pc performed in line with expectations. Chemical was down 0.5pc and power 0.7pc underperformed
the index.
AKD Securities noted that the scrips leading the bourse during the week were: APL up 9.06pc, Hascol 7.39pc,
OGDC 5.45pc, POL 5.02pc and CHCC 4.50pc, while laggards included: PIOC was down 3.80pc, MLCF 3.65pc,
KEL 2.58pc, FFBL 1.50pc and Engro 1.21pc.
OUTLOOK: On Saturday, the Monetary policy committee decided to keep policy rates unchanged at 5.75pc for
the next two months, which the AHL Research stated should be a non-event for the equity market and added
that foreign flows coupled with news flows on domestic politics would continue to decide the mood of the
market.
Next week also marks the futures rollover week, which could keep the market upside in check. Elixir Securities
thought that much would hinge on the outcome of the Panamagate case. Market is likely to remain volatile
amid thin participation. We believe that trading activity will pick up once the final judgment is announced,
the brokerage said and cautioned that even the upcoming result season my take a back seat till the final
judgment is announced.
We expect investors to adopt a cautious stance until the final judgment, analysts at AKD Securities said. But
they believe that the result season, commencing next week, is likely to guide market sentiments with scrips in
key sectors (power, cements and autos) to remain in limelight on anticipated full year payouts.
Published in Dawn, July 23rd, 2017
WEEK 4: 24-28 July 2017

July 24, 2017
PSX commences week on positive note as benchmark

index advances 235 points
The Pakistan Stock Exchange (PSX) commenced the trading week on a positive note, with the benchmark
KSE-100 Index advancing 235 points, or 0.52 per cent, to touch 45,529 on Monday.
The market tested the day's low at 45,271 points during the mid of the session but rebounded immediately.
The benchmark touched the day's high at 45,567 points near the end of the session.
The communication sector led activity at the bourse, with 26.8 million shares traded; it was followed by the
textile and the banking sectors with 10.3m and 9.4m shares, respectively.
A JS Global report termed the session 'lacklustre' as overall volumes stood at 106 million shares.
OGDC (+0.33pc) and PSO (+1.24pc) gained as their bonds matured and announcements of investment
prospects were made, said that report, adding that E&P sector stocks closed in the green zone as oil prices
increased globally after the OPEC committee meeting.
Investor sentiments have been driven by developments on the political front, where investors are now
speculating on expectations regarding the reserved SC decision, it added.
The report further said that the result season is expected to boost volumes in key sectors such as power,
cement, and auto.
"The government's resolve to accept the verdict of the Supreme Court on reserved judgment in the Panama
Papers case, status quo decision in the SBP policy rate statement, upbeat FDI data and upbeat data on value
added textile exports for the fiscal year 2017 played a catalyst role in the bullish close," said senior analyst
Ahsan Mehanti.
Only 53m shares of KSE-100 companies changed hands during the session, with a total worth of nearly Rs4.1
billion.
Azgard Nine: 7.3m shares traded [+8.35pc];
Dewan Motors: 5.0m shares traded [+4.99pc].
Published: July 25, 2017
Market watch: KSE-100 ends in the green for third consecutive day
KARACHI: The stock market gained points for the third consecutive day as support came from cherry-picking of
retail and industrial stocks by local investors.
Political uncertainty due to impending Panama case verdict and Mondays terrorist attack in Lahore caused
minor fluctuations at the start of the session on Tuesday, but they failed to impact overall growth as the day
progressed.
After Mondays dull trading, volumes recorded a considerable growth, rising to 223 million shares. At close, the
benchmark KSE 100-share Index recorded a rise of 388.69 points or 0.85% to finish at 45,917.90.
Elixir Securities, in its report, stated Pakistan equities added to the gains and closed higher as the benchmark
index rose 0.9% and settled over 45,900 points.
The wider market saw better participation, helped primarily by local interest in select industrial and consumer
plays, resulting in volumes on the KSE All-share Index crossing 350 million, the report said.
Although the market witnessed dull activity in the morning likely due to political noise and Mondays terror
attack in Lahore, the index gradually inched up as the day progressed.
Market watch: KSE-100 rises above 45,500 points despite dull trading
Industrial and consumer plays including Sui Northern Gas Pipelines (+2.8%), International Steels (+4.9%),
Engro Polymer (+3.7%) and Pak Elektron (+3.2%) led gains on buying interest from local institutions, Elixir
said.
Sideboards too had a field day as many retail favourites such as TRG (+1.4%), Azgard Nine (+4.5%), Aisha
Steel Mills (+4.8%) and Dost Steels (+4.1%) closed higher and dominated the volumes chart.
On the results front, Honda Atlas Cars (+2.9%) closed higher after a surprise pay-out and better first quarter
earnings while Pak Suzuki Motor (-0.6%) closed marginally lower because of earnings below estimates.
Despite the benchmark index gaining for three consecutive sessions, we rule out the possibility of any sharp
surge in the near term and levels of 46,100/300 will likely provide strong resistance as uncertainty over domestic
politics very much remains, the report added.
JS Global analyst Maaz Mulla said positive investor sentiment prevailed and the index hit an intraday high of
+410 points.
Honda Atlas Cars gained as the company posted earnings per share (EPS) of Rs14.61 for the first quarter of
FY17 with cash dividend of Rs4.18 per share.
KSE-100 index recovers, posts gain of 937 points
Pak Suzuki Motor from the same sector shed points as the company posted EPS of Rs24.20, which was below
market expectations.
UBL (+0.52%), MCB Bank (+0.21%) and NBP (+0.82%) from the banking sector gained, cumulatively
contributing 19 points to the KSE-100 index.
The steel sector extended its previous days gains as Aisha Steel, International Steels (+4.89%) and Dost Steels
closed in the green zone. The fertiliser sector also gained as urea sales surged 79% year-on-year in June 2017.
Moving forward, we expect the market to remain jittery as investors await the final verdict of the Supreme
Court in Panama case and recommend investors to stay cautious and utilise opportunities to reduce short-term
positions, he added.
Overall, trading volumes rose to 223 million shares compared with Mondays tally of 105 million.
Shares of 368 companies were traded. At the end of the day, 262 stocks closed higher, 95 declined while 11
remained unchanged. The value of shares traded during the day was Rs10.1 billion.
TRG Pakistan was the volume leader with 16.46 million shares, gaining Rs0.54 to close at Rs40.45. It was
followed by Azgard Nine with 13.94 million shares, gaining Rs0.58 to close at Rs13.55 and Engro Polymer with
13.9 million shares, gaining Rs1.34 to close at Rs37.79.
Foreign institutional investors were net sellers of Rs116 million during the trading session, according to data
compiled by the National Clearing Company of Pakistan Limited.
July 25, 2017
PSX gains 389 points amidst restrained activity

The Pakistan Stock Exchange's benchmark KSE-100 Index gained 389 points, or 0.85 per cent, to close at
45,918 on Tuesday as investors built positions, albeit with marked restraint.
While only 79 million shares changed hands in the session, with a total worth of over Rs7.1 billion, it was
nonetheless an improvement over the previous day, when 53m shares were traded.
Overall volumes also improved to 224m shares compared to the previous day's 106m. According to an analyst
note from Topline Securities, 30pc of the volumes were dominated by activity in second tier scrips, which
boosted the overall market.
The index recorded a day's low of 45,499 early in the day and continued on an upward trajectory throughout
the session to hit 45,940 towards close.
Trading was led by the engineering sector with 34.7m shares traded, while chemical and telecommunication
sectors followed with 29.8m and 20.8m shares traded respectively.
Stocks of 372 companies were traded over the day, of which 259 gained value, 101 declined and 12 remained
unchanged.
TRG Pak Ltd: 16.5m shares traded [+1.35.pc];
Dost Steels Ltd: 11.8m shares traded [+4.07pc].
July 26, 2017
PSX closes nearly flat as benchmark index sheds

9 points
The Pakistan Stock Exchange ended nearly flat on Wednesday, with the benchmark KSE-100 index shedding
9.5 points, or 0.02 per cent, by the close of the trading session to reach 45,908.
The index reached the day's high at 46,107 points soon after trading opened; however it soon descended to the
day's low of 45,858 as the index came under pressure. It see-sawed throughout the day before closing flat for
the session.
"Start to the day was on a positive note with oils leading gains tracking higher global crude [prices] and
helping the index retest the important resistance level of 46,100," reported Elixir Securities.
"The index, however, couldn't sustain its morning run and erased all gains by day's close as participants, likely
wary of [the] uncertain direction of market, chose to book profits," it added.
Trading activity was led by textile scrips, with 27.4 million shares traded during the session. The oil and gas
marketing sector and engineering sector followed with 20.4mn and 15.8mn respectively.
A JS Global report termed the activity at the bourse as "lackluster", noting that the index traded between an
intraday high of +189 points and low of -60 points owing to jitters from political circles.
"Despite the dull activity, the market appeared to consolidate as prices have fallen to extremely attractive
levels," the report read.
A total of 66.8mn shares of KSE-100 index companies changed hands in the session, with a total worth of
Stocks of 365 companies in all were traded, of which 137 gained in value, 209 declined and 19 remained
unchanged.
Sui South Gas: 16.7m shares traded [+1.28pc];
Dewan Motors: 11.1m shares traded [-3.12pc].
TRG Pak Ltd: 10.0m shares traded [-1.38.pc];
Dewan Cement: 7.1m shares traded [+0.76pc
July 27, 2017
PSX closes nearly flat for second consecutive

session
The Pakistan Stock Exchange (PSX) ended nearly flat on Thursday, with the benchmark KSE-100 index
shedding only three points, or 0.01 per cent, by the close of the trading session to reach 45,906.
The index touched the day's low at 45,758 points an hour after trading opened. However, it soon recovered,
reaching the day's high of 46,025.
Trading activity was led by banking scrips, with 31.6 million shares traded during the session. The textile
sector and chemical sector followed with 23.6m and 11.5m respectively.
Ahsan Mehanti of Arif Habib Corporation said that the benchmark closed flat as investors were awaiting the
Supreme Court verdict on the Panamagate case following the joint investigation team's probe into the Sharif
family's assets.
"Oil stocks outperformed amid surging global crude prices," he added.
Concerns over political uncertainty, dismal corporate performance in the fertiliser sector, and foreign outflows
were catalysts for the bearish close at the PSX, he concluded.
A report from Topline Securities also said that the KSE100 index continued to trade in a narrow range and
closed almost similar to yesterday's performance.
Participation dipped with volumes falling 10pc to 159m shares while traded value shed 24pc to Rs6.3
billion/US$60m, the report said.
The food sector added 41 points, power 27, and the energy and power sector 1. The fertiliser sector shed 26
points, cement 19 and oil marketing companies 17 points, the report said.
Topline added that UBL (0.6pc) Earnings Per Share were Rs4.7 in the second quarter of 2017, down 18pc
year-on-year in line with market expectations. The bank declared a dividend of Rs3/share.
A total of 73.4m shares of changed hands in the KSE-100 index during the session, with a total worth of nearly
Rs4.1bn.
The stocks of 372 companies were traded in total, of which 132 gained in value, 221 declined and 19 remained
unchanged.
B.O.Punjab: 27.0m shares traded [-1.85pc].
Azgard Nine: 17.9m shares traded [-4.39pc];
Sui South Gas: 8.7m shares traded [-1.97pc];
Byco Petroleum: 8.3m shares traded [+4.40pc];
TRG Pak Ltd: 0.33m shares traded [-1.38.pc].
Market closes flat after wild roller-coaster triggered

by Panamagate verdict
Considerably volatility was observed at the Pakistan Stock Exchange (PSX) right before and after the
Panamagate verdict, with the benchmark KSE-100 Index plunging sharply twice before inviting support from
investors to close nearly flat for the third consecutive session.
After falling 719 points in the first session of trading on Friday, the index saw another sharp fall in the opening
moments of the second session. However, investors soon started buying into the oversold market, helping the
index recover to 45,912.
Some analysts said the possibility of the prime minister's ouster had already been priced into the market,
explaining the support on selling pressure.
A JS Global report said noted that after witnessing a rebound in the first four sessions of the week, the market
nosedived by more than 1,600 points during the first of half of Friday ahead of the Supreme Court's decision
regarding the disqualification of the prime minster.
However, the market recovered sharply to close six points up after the apex court announced the
disqualification of the premier and value hunters saw it as an end to longstanding uncertainty.
Analyst Ahsan Mehnati said stocks had closed flat as uncertainty subsided after the PM's resignation.
"Rising global crude prices, upbeat financial results in the energy and auto sectors played a catalyst role in
major recovery at market close," he added.
Close to 161 million shares worth around Rs16.6 billion changed hands the highest volume witnessed since
June 21.
Engineering stocks led the activity at the bourse with 42.3 million shares traded. The textile and the cement
sectors followed with 32.5mn and 32.4mn shares respectively.
Of the total 360 companies traded, 213 had advanced while 134 declined and 13 remained unchanged.
TRG Pak Ltd: 18.5m shares traded [+4.05.pc];
Aisha Steel Mill: 14.9m shares traded [+2.62pc].
July 25, 2017
Stocks add 235 points to overnight gains

KARACHI: The KSE-100 index on Monday managed to gain 235 points (0.52 per cent) to close at 45,529.20.
Market participants tried to spread the word that the worst was over, but no one was willing to take fresh
positions, regardless of attractive valuations. The rollover week further limited the upside on certain stocks.
The volume declined 14pc over the previous session to 106 million shares, while the traded value was down
22pc to Rs5.4 billion.
Small-cap companies TRG, ANL and BOP, which together saw trading in 36m shares, represented a third of
the aggregate volume.
Elixir Securities stated that selective institutional trading was noted and most retail investors refrained from
participating amid looming verdict of Panama Papers case.
In line with expectations, weekend monetary policy announcement with State Bank of Pakistan maintaining
the benchmark-borrowing rate at 5.75pc had no impact on the market.
The index moved between intraday low of 23 and intraday high of 272 points.
Top 5 index-point performers were Nestle which was up 4.2pc, MCB 1.2pc, DAWH 1.6pc, Engro 0.7pc and
TRG 3.3pc, adding 97 points; while MARI was down 1.6pc, PMPK 5pc, BAHL 1.1pc, FCCL 0.9pc and UBL
0.2pc, taking away 39 points from the index, said dealers at Topline Securities.
On the sector front, fertiliser added 49 points, food 43 points, OMCs 26 points, banks 18 points and tech 16
points, while tobacco shed 9 points.
Analysts at JS Global noted that the E&P sector stocks including OGDC 0.33pc, POL 0.85pc, and PPL 0.52pc
closed in the green zone as oil prices increased globally after the OPEC committee meeting.
July 26, 2017
Stocks gain 389 points on select buying

KARACHI: The KSE-100 index rose by 389 points (0.85 per cent) to close at 45,918.
Intraday maximum gain was 410 points.
Second-tier stocks such as TRG gained 1.4pc, ANL was up 4.5pc, ASL rose 4.8pc and DSL closed higher by
4.1pc, which churned out aggregate turnover of 70m shares or 31pc of total volume.
The traded value rose 88pc over the previous session to Rs10.2 billion. Market participation rebounded as the
volume shot up 111pc to 224 million shares from 106m shares a day ago.
Analysts at Elixir Securities stated that the wider market saw better participation helped primarily by locals
interest in select industrial and consumer plays. Although the market witnessed dull activity in the morning
trade due possibly to the political noise and Mondays terror attack in Lahore, the index gradually inched up as
the day progressed.
Industrial and consumer players including Sui Northern Gas Pipelines which rose 2.8pc, International Steels
4.9pc, Engro Polymer 3.7pc, Pak Electron 3.2pc led gainers on buying interest from local institutions.
In the automobile sector, Honda Atlas Cars rose 2.9pc after a surprise payout and better first quarter earnings
while Pak Suzuki Motors was marginally down by 0.6pc posting earnings, which fell below estimates.
DAWH which gained 3.4pc, Eengro 1.6pc, SNGPL 2.8pc, ISL 4.9pc and OGDC 1pc contributed 127 points to
the index rise, while ABOT which fell 2.3pc, Lucky Cement 0.4pc, KTML 1.8pc, HBL 0.2pc and CHCC 1.2pc
erased 35 points.
On the sector front, fertiliser added 75 points, OMC 48 points, E&P 47 points, banks 34 points and insurance
29 points; while textile shed 3 points.
July 27, 2017
Index closes flat in see-saw trade

KARACHI: Equities closed flat in lacklustre trading session on Wednesday where the benchmark KSE-100
index saw marginal fall of 9.51 points to close at 45,908.
Start to the day was on positive note with oil scrips leading gains tracking higher global crude and helping the
index to retest important resistance level of 46,100.
However, it could not sustain its morning run and erased all gains by days close as participants, likely wary of
uncertain direction of the market, chose to book profits.
The index moved between the intraday high and low of 189 and 60 points respectively. The volume evaporated
with 17.6 million shares changing hands against trading in 224m shares the previous day. The traded value
also dropped to Rs8.3 billion, from Rs10.3bn.
ANL was the days volume leader as more than 22m shares changed hands.
Elixir Securities said that index names saw very selective participation from institutional investors.
Only a handful of stocks that attracted significant institutional interest both from locals and foreigners, were
Hub Power, OGDC, Fauji Fertiliser, Engro Corp and Engro Fertiliser.
According to Intermarket Securities, major contribution to index downside came from HBL which fell 0.64pc,
SNGP 1.69pc, DAWH 1.42pc, NML 1.69pc and LUCK 0.37pc taking away 70 points.
Dealers at JS Global observed that the E&P sector gained 1pc as oil prices continued their uptrend. POL was
up 2.02pc and PPL 1.46pc.
Ahsan Mehanti at Arif Habib Ltd stated that stocks closed dull in the futures rollover week as investors eye
the outcome of Supreme Court decision over JIT probe.
July 28, 2017
Cloud of Panamagate verdict lingers on PSX

KARACHI: Stocks closed another session with almost no change in KSE-100 index in lacklustre and range-
bound trading on Thursday.
The market was rife with rumours over the Panamagate verdict and Interior Minister Ch Nisar Ali Khans
press conference which was held after trading hours.
Just for academic interest, the KSE-100 index shed 2.63 points (0.02 per cent) to close at 45,906.
The volume fell further by 10pc over the previous day to 159 million shares, while the traded value shed 24pc
to Rs6.3 billion.
Top traded stocks were BOP, ANL, TRG, KEL and ASL with combined turnover 57m shares (36pc of total
volume)
Top 5 index point performers were identified by Topline Securities as Nestle which gained 4.9pc, HUBC 1.7pc,
BAHL 2.5pc, OGDC 0.6pc and ABOT 4.9pc, adding 117 points. Lucky Cement lost 1.1pc, DAWH 1.5pc, UBL
0.7pc, ENGRO 0.9pc and HBL 0.4pc, taking away 66 points.
On the sector front, food added 41 points, power 27 points and E&P 15 points.
On the flip side, fertiliser shed 26 points, cement 19 points and OMC 17 points.
Indus Motor gained 2pc as it announced price increase on various models. Market is expected to remain
under pressure on Friday due to the last day of the rollover week, said dealers at JS Global.
We see lacklustre trading with investors mainly tracking flows while domestic politics will continue to remain
a drag until the court announces Panama verdict, wrote Elixir Securities in its day-end report.
Meanwhile, Intermarket Securities predicted: As the result season unfolds, we expect heavy weights to pull
the index while offsetting negativity from Supreme Court verdict. That said, thin participation might persist in
the medium term as modicum of clarity emerges.
WEEK 5 JULY 31-04 AUGUST

July 31, 2017
PSX closes flattish after profit-taking reverses intra-day gains

The Pakistan Stock Exchange commenced the week with a session that saw a sharp upswing followed by sustained
selling pressure, leading to the benchmark KSE-100 Index closing with a modest 98 point, or 0.21 per sent, gain at
46,010.
The index climbed 777 points within the first 15 minutes of the session on Monday on the back of a perceived
return to political stability in the country. The rally continued as the index breached the 47,000 level during intra-
day trading.
The index added a total of 1,200 points to touch a day's high of 47,112 points, but shed most of the gains over the
day to close at 46,010 points. However, the day's opening at 45,912 points remained the day's low.
Textile composite dominated the day's trading with 40.8m shares traded, while the banking and the engineering
Ahsan Mehanti of Arif Habib Corporation said late session pressure was witnessed in banking stocks on reports of
narrowing banking spreads.
"Record rise in global crude prices and upbeat financial results in the energy and auto sectors played a catalyst
role in bullish close," he said.
Almost 150 million shares of KSE-100 scrips, worth Rs14.8 billion, were traded during the session.
Shares of 386 companies changed hands during the day, with 255 symbols advancing, 114 declining and 17
remaining unchanged.
August 01, 2017
Bulls return to PSX as benchmark index gains 523 points
The Pakistan Stock Exchange landed in the green on Tuesday as the benchmark KSE-100 index gained 523
points, or 1.14 per cent, by the close of the trading session to reach 46,533 points.
The index floated around 46,150 points, up almost 140 points from the opening of the session, for the greater
part of the session. However, the benchmark showed an upswing in the second half, testing the day's high at
46,624 points near the close of the session. The market's opening at 46,010 points remained the day's low.
Trading activity was led by the engineering sector, with 39.7 million shares traded during the session. The
textile and the chemical sectors followed with 29.7m and 24.0m shares traded respectively.
Explaining the positive activity at the bourse, a JS Global report said, "The investor sentiment was bullish on
account of political certainty and improved inflation numbers, which clocked in at 2.91pc for the month of
July."
"BYCO (+4.6pc) gained on the back of news of production resumed from its 120,000bpd refinery. ASL (+5pc)
and ISL (+5pc) closed at their respective upper circuits as customs increased import duty on steel giving an
advantage to the local steel industry," it said, adding that the cement sector also flourished as cement prices
increased by Rs10-15 per bag.
CHCC (+1pc), MLCF (+3.1pc) and DGKC (+2.1pc) were among major gainers in the cement sector, it added.
The report further said that the oil and gas exploration and production companies' sector gained on rising oil
prices in the trading session. OGDC (+2pc) and POL (+4.1pc) were the major gainers from the sector.
HBL (-3.7pc) continued its downward trend on account of the rumours regarding the risk of the penalty
imposed on the bank due to its compliance issues in its New York branch, the report said, adding that the
stock took 127 points from the index.
Ahsan Mehanti of Arif Habib Corporation said that stocks closed bullish led by oil and fertilizer scrips on
strong valuations.
"Fertilizer scrips out-performed amid reports of resolution of fertilizer sector subsidy issues by the
government," he added.
A total of 108mn shares of KSE-100 index companies changed hands in the session, with a worth of nearly
Rs13.7 billion.
Lotte Chemical: 14.5m shares traded [+4.09pc];
Dost Steels Ltd: 13.5m shares traded [-10.94pc].
August 02, 2017
Bullish trend continues at Pakistan Stock Exchange
The Pakistan Stock Exchange (PSX) maintained its positive momentum on Wednesday as the benchmark
KSE-100 index gained 416 points, or 0.89 per cent, by the close of the trading session to reach 46,949 points.
The bullish trend ruled over the bourse through out the day's trading. However, the market showed an
upswing during the first 45 minutes, with the benchmark climbing 432 points.
The index tested the day's high at 46,989 points near the close of the session. The market's opening at 46,533
points remained the day's low.
Trading activity was led by the engineering sector, with 47 million shares traded during the session. The
chemical and the cement sectors followed with 41.8m and 35.7m shares traded respectively.
"Buying interest was witnessed in the oil marketing companies sector as PSO (+2.46pc), SNGP (+2.51pc), and
SSGC (+1.64pc) gained from the aforementioned sector. PSO likely gained on the back of becoming Shariah-
compliant after receipt of cash against PIBs and retirement of short-term debt," said a JS Global report.
The report added that the steel sector continued its positive trend due to revised custom valuations on
imported steel, favouring local steel manufacturers. ASL (+5pc), ISL (+3.89pc) and ASTL (+1.55pc) were the
major gainers from the steel sector.
It added that the OGDC (-0.57pc), POL (-0.25pc) and PPL (-0.82pc) from the oil and gas exploration and
production companies' sector shed points as international oil prices decreased on account of increasing US oil
inventory and high OPEC production.
The report further said that HBL (+2.94pc), MCB (+1.60pc) and UBL (+1.33pc) from the commercial banking
sector cumulatively contributed +150 points to the KSE-100 index.
Senior analyst Ahsan Mehanti said, "Investor speculations on the prime minister's ambitious vision
announcements, higher global crude prices, upbeat global equities and strong corporate results in the cement,
oil and auto sector played a catalyst role in bullish close."
A total of 154m shares of KSE-100 index companies changed hands in the session, with a worth of nearly
Rs11.9 billion.
Lotte Chemical: 22.3m shares traded [-0.90pc].
August 03, 2017
PSX manages modest gains amidst jittery trading
The Pakistan Stock Exchange (PSX) landed in the green on Thursday as the benchmark KSE-100 index gained
135 points, or 0.29 per cent, by the close of the trading session to reach 47,084 points.
The benchmark seesawed throughout the trading session. The index tested the day's high at 47,168 points
near the close of the session. The market touched the day's low at 46,857.
Trading activity was led by the communications sector, with 63.5 million shares traded during the session. The
banking and the power sectors followed with 59.8m and 48.8m shares traded respectively.
"The market continued its positive momentum with profit taking in selective stocks," said a JS Global report,
adding that the KEL (+7.65pc) led the volume today with 44m shares of the power distribution company
changing hands.
"POL (+1.23pc) and OGDC (+0.64pc) in the oil and gas exploration and production sector gained to close in
the green zone as oil prices rose in the international market. Commercial bank heavyweights including HBL
(+1.11pc), MCB (+2.01pc), NBP (+0.59pc) and ABL (+1.07pc), cumulatively contributed +77 points to the
KSE-100 index," the report added.
The report further said that downward pressure was witnessed in oil and gas marketing stocks as SHEL (-
0.55pc), SNGP (-1.89pc), and SSGC (-0.46pc) shed points.
Ahsan Mehanti of JS Global said, "Upbeat CPI Inflation data for July 2017 supported leveraged stocks in the
cement, textile and auto sectors."
He added that the reports of surging cement dispatches and oil consumption data for July amid higher global
crude prices played a catalyst role in the bullish close.
A total of 202m shares worth nearly Rs11.2 bn of KSE-100 index companies changed hands during the session.
Hum Network: 23.5m shares traded [-5.86pc];
TRG Pak Ltd: 22.9m shares traded [+3.82pc].
August 04, 2017
PSX closes week on negative note as benchmark index sheds 207

points
The Pakistan Stock Exchange (PSX) ended the week on a negative point, with the benchmark KSE-100
Index losing 207 points, or 0.44 per cent, to close at 46,877 on Friday.
The market hit the day's high of 47,241 within 15 minutes after the opening of the trading session but
failed to sustain the positive momentum. Profit-taking in the second session led the benchmark index to
the day's low at 46,834 points near the day's close.
The commercial banking sector dominated the day's trading with 50.9m shares traded, while the
technology and the engineering sectors followed with 42.2m and 38.9m shares traded respectively.
"Stocks closed bearish amid higher trades on investor concerns over foreign outflows," said Ahsan
Mehanti of Arif Habib Corporation.
He added that the higher global crude prices, speculations on likely refunds to the ailing textile sector next
week, upbeat oil consumption and cement sales data for July 2017 invited mid-session support in the
textile, oil and cement sectors.
"Economic uncertainty and concerns over political noise played a catalyst role in the bearish close at the
PSX," he added.
A total of 138m shares worth nearly Rs8.8bn of KSE-100 index companies changed hands during the
session.
Stocks of a total of 395 companies were traded, of which 170 advanced, 202 declined and 23 remained
unchanged.
PSX swings but settles for gains

KARACHI: The KSE-100 index had all the right reasons to show wild swings during the outgoing week, but
finally closed with gains of 618 points (1.4 per cent) at 45,912.
Extending the preceding weeks positive trend, the week commenced on a strong note with the index adding
624 points in the first two days trading, with local individuals and banks being the main buyers.
The market traded lacklustre mid-week, but on Friday as the five-member bench of the Supreme Court spelled
out its verdict that disqualified Prime Minister Nawaz Sharif, the index witnessed one of the largest single day
swings recovering from 1,670 points (-3.6pc) in the negative at the start of days trade to positive closing by a
marginal 6 points.
According to dealers at Arif Habib Ltd (AHL), sector-wise gainers during the week were: oil and gas
exploration companies 191 points; food and personal care products 137 points; power generation 132 point;
fertiliser 97 points and oil and gas marketing companies 61 points.
Average daily volumes for the outgoing week were up 48 per cent week-on-week to 198 million shares, from
135m shares and value was higher by 36pc week-in-week. Activity was focused in retail favorite stocks, which
included ANL 87m shares, TRG 76m shares, BOP 54m shares, SSGC 51m shares and EPCL 51m shares.
Foreign selling clocked in at $13.2m during the week against $2.01m in the earlier week. Major foreign
outflows were witnessed in cements $7.3m; commercial banks $3.9m and power generation $2.6m, while
inflows were noted in fertiliser sector of $3.4m. Among local participants, mutual funds were net sellers of
$28.2m worth stocks during the week, while individual were net buyers of $24m.
Elixir Securities calculated that during the outgoing week, oil stocks rallied the most tracking international oil
prices which rose 4.5pc week-on-week with OGDC, PPL, POL, cumulatively pulling the index up by a
cumulative 154 points, while NESTLE and HUBC contributed further 228 points. On the flip side, LUCK,
HBL, UBL, MCB, and PSMC cumulatively dragged the benchmark index by 270 points. Moreover, positive
performance was also witnessed in the oil and gas, power and export oriented stocks that stand to gain from
potential depreciation in rupee.
Such stocks included AVN, HUBC, PPL, which rallied 14pc, 6pc and 3pc, respectively. On the other hand,
Fauji Foods jumped 15.8pc during the week, on the back of announcement of right issue of Rs3.3bn along with
its financial results.
According to AKD Securities, scrips leading the bourse week-on-week were: EFOODS 5.8pc, HUBC 5.7pc, POL
5.4pc, MLCF 4.3p and INDU 4.14pc; whereas laggards included PSMC 6.9pc, LUCK 6.1pc, ASTL 2.5pc, APL
2.0pc and MCB 1.9pc.
Outlook: AHL analysts predicted that the market could find new support as the decision of the Supreme Court
had largely cleared out the fog that had been gathering over weeks.
Foreign selling might be a slight damper but we view domestic investors to show enough resilience to
overcome such pressures, AHL said and added that the immediate triggers included the result season which
could keep specific scraps in the limelight.
AKD Securities said the repercussions of the precedent setting Panamagate verdict are likely to cut across
investor sentiment, with continuity of government and continued grip on economic affairs at the fore.
August 01, 2017
Profit-taking wipes out early gains

KARACHI: The KSE-100 index on Monday added 98.42 points (0.21 per cent) to overnight gains closing at
46,010 points.
The market was inundated with buy orders as the investors felt relieved after uncertainty over the
Panamagate verdict ended.
The index surged 1,200 points to 47,111 points within the first 90 minutes of the trading. As the euphoria died
down and sanity returned, investors rushed to take profit with the result that the index dipped in the red, for a
moment, but managed to emerge into the green before the close.
The volume was slightly down to 319 million shares against 328m shares on Friday. The traded value also
declined 11pc to Rs18.8bn, from Rs21.1bn.
According to Topline Securities, the five index point gainers included SNGPL up 4.6pc, Engro 2.2pc, OGDC
1.9pc, Mari 3.3pc and Hubco 1.4pc, which added 168 points. On the flip side, HBL hit the lower circuit, FFC
lost 4.5pc of the value, PPL 1.3pc, UBL 0.8pc and Indus Motors 2.2pc taking away 282 points.
Elixir Securities issued a note saying: Buying primarily by local institutions drove early gains, however, it was
met with resistance and witnessed profit-taking with foreign investors reportedly taking advantage of the
surge and driving selling action in key index names across major sectors.Ahsan Mehanti of Arif Habib Corp
said that the stocks closed higher amid investor speculation on election of new prime minister election after
disqualification of Nawaz Sharif.
Late session pressure witnessed in banking stocks on reports of falling banking spreads, Mehanti said,
adding that record rise in global crude prices and upbeat financial results in the energy and auto sectors
played a catalyst role in bullish close.
Published in Dawn, August 1st, 2017
August 02, 2017
Index gains 523 points on higher crude prices

KARACHI: Stocks started off the first day of August on a cheerful note.
After hitting the intraday high by 613 points, the KSE-100 index closed with a gain of 523 points (1.14 per
cent) at 46,533.43.
While foreign and local investors were inclined to take profit at higher levels, mutual funds absorbed selling by
building positions worth $12.44 million.
Equities surged in the lead of the energy chain sector because of higher crude oil prices. Pakistan Oilfields was
ahead of other oil stocks with a gain of 4.1pc.
Habib Bank continued to slide, briefly hitting its lower limit during intraday trade. Rumours did the rounds
about a risk of penalty in view of the banks compliance issues in its New York branch. However, it made no
such announcement.
The volume declined 20pc from the preceding session to 256m shares while the traded value fell 6pc day-on-
day to Rs17.6 billion.
Major contribution (53.73m shares) to the volume came from Azgard Nine and Aisha Steel.
Top five stocks that contributed 258 points to the index included Engro Corp, which went up 4.2pc, Sui Nor-
thern Gas Pipelines 5pc, Pakistan State Oil 5pc, Pakistan Oilfields 4pc and Oil and Gas Development Company
2pc. Habib Bank lost 2.7pc value, followed by Abbot Laboratories 3.9pc, Lucky Cement 0.7pc, Kohinoor
Textile Mills 3.1pc and Dawood Hercules 0.7pc, taking away 177 points.
The oil marketing sector added 121 points to the index, exploration and production 119 points, fertiliser 99
points, power 55 points and cement 42 points. Banks took away 50 points from the index.
The market is still showing resilience after the prime ministers dismissal, said analysts at Intermarket Secu-
rities. They added that the result season will drive the fate of the market until the political landscape changes.
Published in Dawn, August 2nd, 2017

August 03, 2017
Bull run continues on stock market

KARACHI: Stocks advanced further on Wednesday with the KSE-100 index adding 416 points (0.89 per cent)
to close at 46,949 points.
The volume rose to 368 million shares compared to 256m shares a day earlier. Major contribution to the
volume came from second-tier stocks K-Electric, Bank of Punjab and TRG Pakistan, which collectively
contributed 77m shares.
With politics settling down and result season still in stop-start mode, the low Consumer Price Index reading of
2.9pc for July, the lowest level since November 2015, allowed investors to focus on positives.
According to Intermarket Securities, major contribution to index upside came from Habib Bank up 2.94pc,
Lucky Cement 2.77pc, UBL 1.33pc, SNGP 2.51pc and MCB Bank 1.6pc, adding 227 points. On the flip side, PPL
shed 0.82pc, MEBL 2.17pc and OGDCL 0.57pc taking away 39 points.
Financials lent most support on institutional interest where HBL bounced back by 2.9pc to recover part of the
8pc losses in the previous two sessions.
Dealers at JS Global stated that buying interest was witnessed in OMC sector with PSO rose 2.46pc, SNGP
2.51pc, and SSGC 1.64pc. PSO possibly gained on prospects of becoming Shariah-compliant after receipt of
cash against Pakistan Investment Bonds and retirement of short-term debt.
The steel sector continued its positive trend due to revised customs valuations on imported steel, favouring
local steel manufacturers.
ASL jumped 5pc, ISL 3.89pc and ASTL 1.55pc. E&P stocks shed values as international oil prices decreased on
account of increasing US oil inventory and high production by Organisation of Petroleum Exporting
Countries.
Published in Dawn, August 3rd, 2017
August 04, 2017
Index crosses 47,000 points on select buying

KARACHI: Stocks climbed higher for the fourth consecutive day on Thursday with the KSE-100 index adding
135.30 points (0.29 per cent) to settle at 47,084.
The volume rose by 24pc over the earlier day to 455 million shares hitting 10-week high. Reduction in
political noise post-Panamagate verdict and smooth transition afterwards with new prime minister taking
charge seemed to have revived retail investors confidence, said analysts at Elixir Securities. The traded value
was down 4pc to Rs16.1 billion. Industrial and consumer sideboards generated the highest volume on retail
churning.
K-Electric and Bank of Punjab dominated the volumes chart with more than 40m shares changing hands in
each. KEL remained in the limelight gaining 7.7pc ahead of its financial year 2017 results, which is likely to be
prepared on previous multi-year tariff.
Regardless of the positive momentum profit taking continued in selective stocks. The index touched intraday
high by 218 and intraday low by 91 points.
Index heavyweights continued to drive the rally as HBL up 1.1pc, MCB 2pc, KEL 7.7pc and PSO 1.9pc
contributing 119 points to index. On the other hand, PAKT was down 5pc, SNGP 1.9pc, ISL 2.7pc and PPL
0.8pc taking away 68 points.
The KSE-100s performance stood out in the context of a poor day for Asian markets, reinforcing the view
that domestic developments will likely continue to be of paramount importance, stated analysts at
Intermarket Securities.
According to JS Global, the banking, oil and gas stocks drove the rally. Commercial bank heavyweights
including HBL jumped 1.11pc, MCB 2.01pc, NBP 0.59pc and ABL 1.07pc, cumulatively adding 77 points to the
index.
Published in Dawn, August 4th, 2017
August 05, 2017
Stocks shed 207 points on profit-taking

KARACHI: The four-day winning streak at the stock market was broken on Friday when the KSE-100 index
pulled back by 207 points (0.44 per cent) to close at 46,877.
Market opened sideways and stocks mostly witnessed range-bound activity, as institutional interest in
mainboard names remained restricted. Profit-taking took hold in the second half as investors were disinclined
to hold positions over the weekend.
The index, therefore, saw some of the gains pared off it had gathered over the week.
The volume declined to 364 million shares from 455m shares a day earlier and the traded value fell to Rs13.4
billion from Rs16.2bn. Major contribution to total market participation came from BoP, ANL and ASL,
contributing 91m shares.
Elixir Securities stated that on the leader board, Engro Fertilisers gained 3.5pc after the company announced
payout that surprised investors despite earnings underperforming consensus. Meanwhile, gas discovery
notification by OGDCL failed to have any impact on stocks price performance that tracked the sectors bearish
trend due to lower global crude.
Major contribution to the downside came from MCB which was down 1.36pc, OGDC 0.95pc, Engro 0.91pc,
TRG 3.72pc and UBL 0.69pc, taking away 90 points. On the flip side, EFERT up 3.45pc, SEARL 1.39pc and
MEBL 1.35pc.
Ahsan Mehanti of Arif Habib Corp said the stock closed bearish on investor concerns over foreign outflows.
Yet, he said that higher global crude prices, speculations on likely refunds to ailing textile sector next week,
upbeat oil consumption and cement sales data for July 2017 invited mid-session support in textile, oil and
cement sectors.
Updated August 06, 2017

Result season heralds a rebound in share market
KARACHI: Stocks rebounded in the outgoing week with the KSE-100 index up by 965 points (2.06 per cent)
to close at 46,877.
Investors were comforted with the end to political uncertainty after the Supreme Courts verdict on the
Panamagate case on July 28.
Aggressive buyers were quick to seize the opportunity to reshuffle portfolios and even poured more money
into equities at low valuations. Retail investors tried to recover losses by churning low-cost stocks. The
rejuvenation of the investor interest was noted in increased participation. The weekly volume of transactions
surged 76pc to 349 million shares while the traded value jumped 62pc to $157m over the earlier week.
Market watchers contended that the smooth transition of power to the new prime minister, who quickly put
together his cabinet, also helped boost investor sentiments.
Foreign investors sold $41.1m worth of shares during the week, representing a quantum leap from sales of
shares worth $13.2m in the preceding week.
Major foreign inflow was seen in the fertiliser sector ($1.1m) whereas major outflows were in cement
($13.2m), exploration and production ($6.1m) and banking ($4.9m). Although selling was largely absorbed by
mutual funds with fresh pickings worth $34.1m, individuals also bought shares of $17.9m. Banks chose to
reduce their positions by $6.2m.
The advent of the result season saw stock prices respond to corporate earnings and payouts. Sector-wise,
upside to the index came from oil and gas marketing companies (219 points), cements (133 points), fertilisers
(122 points), oil and gas exploration companies (116 points) and power generation and distribution firms (95
points).
Engro Corporation, Sui Northern Gas Pipelines, Pakistan State Oil (PSO), Oil and Gas Development Company
and Pakistan Oilfields pulled up the index, adding cumulative 406 points during the week.
According to AKD Securities, performance leaders were: PSO (10.2pc), K-Electric (10.1pc), Pakistan Telecom-
munication Company (6.6pc), United Bank (6.2pc) and Engro fertilisers (6.2pc).
Laggards included Habib Bank (HBL), which went down 4.7pc, followed by Fauji Fertiliser Company (2.3pc),
Pakistan Petroleum (1.6pc), Indus Motor Company (1.5pc) and Allied Bank (0.8pc).
OUTLOOK: According to Arif Habib Ltd, the market is expected to remain namby-pamby in the upcoming
week as initial celebration over the Panamagate verdict may subside. Rising political noise may again generate
uncertainty in the stock market. While foreign selling may keep the index under check, local players depict an
incessant ability to soak such pressures.
AKD Securities predicted that the emergence of certainty on the political front post-Panamagate verdict,
smooth transition to the new cabinet and continuation of the earnings season may lead to consolidation with
blue-chip stocks gaining steam.
BMA Capital stated that the index can remain range-bound, although market activity is likely to stay upbeat in
coming weeks. Continuous foreign investors portfolio investment outflow is dragging the index performance,
although domestic liquidity has been quite supportive of the market, analysts said, adding that the result
season will be in full swing next week with HBL, PSO, Pak Elektron, Engro Foods and K-Electric set to reveal
quarterly results. Any major positive surprises in terms of quarterly results can act as a catalyst for another
rally.
WEEK 6 07-11 AUGUST

August 07, 2017
Bears dominate market in week's first session
Bears dominated the Pakistan Stock Exchange (PSX) on Monday, with the benchmark KSE-100 index losing
412 points, or 0.88 per cent, to close at 46,466.
The market hit its high point at 46,929 within the first half hour of trading, but continued to fall and marked
46,336 as the day's low towards the close of trading.
Analyst Ahsan Mehanti of Arif Habib Corp attributed the bullish activity to corporate results falling short of
expectations in the fertilisers and banking sector.
"Weak banking spreads, concerns for surging circular debt in the energy sector, falling global crude prices,
foreign outflows and concerns for political noise played a catalyst role in the bearish close," he added.
Commercial banks dominated the session with 45.5m shares traded, while technology and engineering sectors
followed with 22m and 21.7m shares traded respectively.
Around 100 million shares worth Rs7.1 billion were traded during the day. Shares of a total of 384 companies
were traded in the session, of which 106 advanced, 263 declined and 15 remained unchanged.
Bank of Punjab: 17m shares traded [-4.88pc];
Summit Bank: 14.8m shares traded [-18.66pc];
Byco Petroleum: 8.0m shares traded [-2.39pc].
Stocks continue downward slide on political
uncertainty
Pakistani stocks continued to lose ground ahead of ousted prime minister Nawaz Sharif's planned rally on
August 9, with the benchmark KSE-100 Index losing 486 points (1.05 per cent) to drop below the 46,000
points barrier and close at 45,979.70.
The index traded sideways for the greater part of the day before experiencing a sharp decline close to the
1.30pm mark.
Analyst Ahsan Mehanti of Arif Habib Corp said stocks had experienced continued pressure across the board
over concerns for political developments.
"Concerns over the Rs800bn circular debt in the energy sector and uncertainty in global crude prices also
played a catalyst role," he said.
Out of the 371 symbols traded on the exchange on Tuesday, only 81 advanced and 15 remained unchanged. On
the other hand, 275 closed below the price they opened.
Commercial banks were by far the most traded sector on Tuesday, with 44.3m shares traded. Technology and
energy stocks followed with 20.7m and 19.2m shares, respectively.
Exchange volumes touched 205.8 million shares, with a total worth of Rs8.83 billion. KSE-100 trade volumes
dropped to 84.5m shares, worth Rs6.3bn.
1. Summit Bank: 27.2m shares traded (-15.14pc)
2. K-Electric Ltd: 17.7m shares traded (-5.34pc)
3. TRG Pak Ltd: 16.1m shares traded (-0.41pc)
4. Azgard Nine: 11m shares traded (-2.23pc)
5. Aisha Steel Mill: 9.7m shares traded (-3.93pc)
August 09, 2017
Stocks recover intraday losses to close just shy of 46,000 mark
The Pakistan Stock Exchange gained modestly on Wednesday, with the KSE-100 index gaining 19 points, or
0.04 per cent, to close at 45,999.
Bears dominated the session early in the day, with the index sliding to 45,591, but stocks gained ground
towards the end to test 46,101.
"Pakistan equities closed Wednesday little changed after recovering from morning declines which had pulled
the benchmark KSE-100 Index lower," said Elixir Securities.
"Market started on a weaker note and notable bluechips across oils, financials and cements, along with select
index names, were dragged down by mid-day on selling amidst a dearth of serious buyers."
"Political noise remained a dampener as former prime minister Nawaz Sharif kicked off his defiant march,"
the report added.
"Although wider market activity was lower as evident from under 215m shares exchanging hands on KSE All
Index, however volumes and turnover on the benchmark KSE-100 Index jumped 21pc and 77pc respectively
versus yesterday as local institutions reportedly cherry-picked notable names in the second half of trading and
aided in market recovery."
A total 101.5 million shares worth Rs11.15 billion were traded during the session. Shares of 368 companies
were traded, with 222 of them advancing, 134 declining and 12 remaining unchanged.
The engineering sector dominated the day's trading with 29.1m shares traded, while commercial banks and
power generation followed with 27.4m and 18.9m shares traded respectively.
1. Aisha Steel Mill: 19.74m shares traded (+4.73pc)
2. K-Electric Ltd: 14.8m shares traded (+2.03pc)
3. TRG Pak Ltd: 14.9m shares traded (+4.26pc)
4. Azgard Nine: 10.0m shares traded (+6.70pc)
5. Summit Bank: 9.0m shares traded (+9.46pc)
August 11, 2017
PSX closes week on negative note as benchmark index sheds

345 points
The Pakistan Stock Exchange (PSX) closed the week on a negative note as the benchmark KSE-100 index shed
The market adopted a bearish trend from the start of the session and its opening at 45,634 points remained
the day's high. The benchmark touched the day's low at 45,261 points near the close of the session.
The textile sector dominated the day's trading with 21.9 million shares traded, while the communication and
the oil and gas marketing sectors followed with 11m and 10.7m shares traded, respectively.
Ahsan Mehanti of Arif Habib Corporation said in his analysis that stocks had closed lower amid thin trading
volumes and pressure in global equities on geopolitical risks.
"Institutional support was witnessed in banking stocks on strong financial results in the banking sector.
Concerns over $3.2bn dismal trade deficit figure, rising imports, falling foreign exchange reserves and
outstanding circular debt in the energy sector played a catalyst role in the bearish close," he said.
A JS Global report stated that the overall political uncertainty combined with an uninspiring corporate results
season had contributed to another splash of red on trading screens at the end of the week.
"POL (-1.98pc), PSO (-2.16pc) and LUCK (-1.19pc) were the heaviest in dragging down the KSE-100 index,
cumulatively [taking it down] by 67 points," said the report.
Out of commercial bank heavyweights, HBL (-1.41pc), UBL (-0.85pc) and MCB (-0.76pc) lost value and
cumulatively reduced 76 points from the KSE-100 index, the report read, adding that OGDC (-1.20pc), POL (-
1.98pc) and PPL (-1.80pc) lost points as the United States crude futures for September delivery were down
0.76pc to $48.20 a barrel, the lowest since July 26.
"Almost all major sectors, such as E&Ps (-3.5pc week-on-week), banks (-3.0pc week-on-week), fertilizers (-
4.6pc week-on-week) and cement (-3.9pc week-on-week) posted declines during the week," it added.
Only 42.5 million shares of KSE-100 chips, worth Rs4.35 billion, were traded in the day. Shares of a total of
351 companies were traded at the PSX, of which 134 gained in value, 199 declined and 18 remained
unchanged.
Azgard Nine: 18.57m shares traded (+5.20pc);
TRG Pak Ltd: 6.2m shares traded (+1.89pc);
Aisha Steel Mill: 5.37m shares traded (+1.29pc);
Sui South Gas: 5.04m shares traded (+2.55pc);
Dewan Motors: 4.52m shares traded (-1.67pc).
Stocks take Sharifs ouster in stride

Investors heaved a sigh of relief as the ex PM's departure brought an end to prolonged uncertainty over
his fate.
Aug 08, 2017 01:46pm
If stockbrokers and investors in the trading hall of the Pakistan Stock Exchange (PSX) celebrated the ouster of
former prime minister Nawaz Sharif on July 28, they had nothing personal against him.
The prolonged uncertainty over the fate of the former prime minister had taken its toll on the market.
On May 25 the KSE-100 index hit a peak of 53,123 points, but then remained on a slippery slope.
By July 28, when the Supreme Court finally unfolded its judgment, the index had sunk to 45,912 points, depicting
a loss of 7,211 points, or 14pc, from its all-time high level.
But that relates only to the stocks that form the KSE-100 index shares, said a stockbroker.
He explained that two classes of investors had badly burnt their fingers: those who kept pouring money into
overvalued, heavyweight scrips eligible to be included in the MSCI emerging-market (EM) index, and the small
investors with little means who jumped on the bandwagon to accumulate, again, overvalued, second-tier stocks.
Both those categories of shares had lost between 20pc and 40pc of their price.
Yet, in just four trading sessions after Mr Sharifs ouster, the KSE-100 index clawed back by more than 1,000
points to cross 47,000 on Thursday.
Even if the departure of the ex-premier was bad news, investors heaved a sigh of relief since uncertainty,
they say at the market, is worse than bad news
Past events suggest that the stock market has prospered during the PML-N regime since the image of Mr Sharif,
himself an industrialist, as the leader of a business-friendly government is deeply embedded in stockholders
minds.
Ironically, the market had also celebrated the PML-N victory in the last general elections with the same furore.
But uncertainty, they say at the market, is worse than bad news. So even if the departure of Mr Sharif was bad
news, investors heaved a sigh of relief.
On that fateful Friday (when Mr Sharif was disqualified), the KSE-100 index sank by 1,670 points, or 3.6pc, early in
the day before the announcement of the verdict.But in the second half, investors, realising that the worst may be
over, fell over one another in cherry-picking heavily undervalued stocks, pulling the index out of the red.
The PSX, which stood out as the best performing market in Asia in 2016 by giving out a return of 46pc, fell upon
bad times at the dawn of 2017.
First, it was the federal budget. The government set aside the budget proposals presented by the PSX.
The three principal measures included in it were the rationalisation of the period of holdings for levy of Capital
Gains Tax (CGT), waiver of tax on dividend in the hands of shareholders and abolition of tax on bonus shares.
The budget, in contrast, decreed increase of tax on dividend to 15pc from 12.5pc while ignoring the issue of tax on
bonus shares, and abolished the concept of holding period slabs for calculation of CGT, which would now be
levied at a flat rate of 15pc.
All through the month of May, the madness in the market was without method as investors continued to build
positions in preparation for the countrys re-entry into the MSCI EM index.
Everyone believed this would unleash a wave of investment from EM passive funds in the PSX.
Estimates ran up to $500m of incoming funds in the first few days.
But May 31 turned out to be a huge disappointment as all preparations by the stock market to accommodate
funds went in vain.
Investors watched in disbelief as, in contrast to an inflow, the market saw foreign outflows.
Those who had poured money in six heavyweight MSCI EM-eligible stocks were badly trapped.
Then again on July 11, with no viable solution to the political impasse over the Panama Papers case, the KSE-100
index tanked 2,153 points, or 4.65pc the biggest single-day decline in terms of points.
Investors started panic-selling in the lead of mutual funds, which sold equity worth $11.6m.
Yet, the market managed to stage a rally of 1,052 points the very next day, recovering about a half of the value
lost a day earlier.
While all local and foreign participants including individuals and institutions such as banks, corporates and
insurance companies extended their selling spree mutual funds absorbed all of the sell-off with net buying of
$15.3m worth of stocks.
With assets under management of Rs650bn under an aggregate 219 funds, the mutual funds industry has come to
dominate other participants and dictate the direction of the market.
Foreign investors, meanwhile, followed the old market maxim: The time to buy is when theres blood in the
streets.
Like vultures they swooped on fallen corpses to lap up heavyweights that had attained attractive valuations
following consistent bleeding since their peak on May 25.
Finally, it has to be noted that Pakistans equity market, which has grown to be valued at around Rs10 trillion,
stood out as low capitalised and isolated until the start of the current decade.
But it has now matured enough to be affected by internal and external events.
A decade ago, one could see business as usual with market even taking a climb, regardless of bomb blasts in the
city.
Global events such as the price of coal now impacts, say, the cement shares while the fluctuations in the price of
crude sets the direction of the PSXs largest sector by market capitalisation, i.e. oil and gas.
Published in Dawn, The Business and Finance Weekly, August 7th, 2017
August 07, 2017
Bears dominate market in week's first session

Bears dominated the Pakistan Stock Exchange (PSX) on Monday, with the benchmark KSE-100 index losing
The market hit its high point at 46,929 within the first half hour of trading, but continued to fall and marked
46,336 as the day's low towards the close of trading.
Analyst Ahsan Mehanti of Arif Habib Corp attributed the bullish activity to corporate results falling short of
expectations in the fertilisers and banking sector.
"Weak banking spreads, concerns for surging circular debt in the energy sector, falling global crude prices,
foreign outflows and concerns for political noise played a catalyst role in the bearish close," he added.
Commercial banks dominated the session with 45.5m shares traded, while technology and engineering sectors
Around 100 million shares worth Rs7.1 billion were traded during the day. Shares of a total of 384 companies
were traded in the session, of which 106 advanced, 263 declined and 15 remained unchanged.

Bank of Punjab: 17m shares traded [-4.88pc];
Summit Bank: 14.8m shares traded [-18.66pc];
Byco Petroleum: 8.0m shares traded [-2.39pc].
August 08, 2017

Stocks lose 411 points on panic-selling
KARACHI: Stocks extended the losing streak into the second day on Monday with the KSE-100 index
shedding 411.71 points (0.88 per cent) to close at 46,465.66.
Investors were anxious about the evolving political events as the former premier Nawaz Sharif plans to travel
from Islamabad to Lahore with the cavalcade on the GT Road and Awami Tehreek Party head Tahir-ul-Qadri
is also expected to arrive on Wednesday to hold a separate rally.
As always individuals were the panic prone herd, that sold off stocks worth $5.51 million, while all other
participants including companies, banks and mutual funds were net buyers. The market saw foreign inflows of
$0.85m.
The volume stood at 241m shares, which was 30pc lower than last weeks average. Traded value also declined
24pc to Rs10.2 billion, from Rs13.4bn on the last trading session on Friday. Second-tier stocks BoP, KEL and
SMBL contributed 47m shares to the days turnover.
According to calculations by Topline Securities, Lucky Cement was down 2pc, followed by Hubco 1.6pc, PAEL
5pc, DAWH 2.9pc and UBL 1.2pc, taking away 139 points whereas SNGP went up 2.2pc, PSO 0.8pc and COLG
3.4pc adding 39 points to the index.
Sector-wise, commercial banks dragged down the market by 51 points, with UBL losing 1.16pc, NBP 0.54pc
and MCB 0.73pc. Owing to lower global oil prices, OGDC was down 1.10pc, POL 1.45pc and PPL 0.63pc,
stated dealers at JS Global.
PAEL, one of the volume leaders on Monday, hit its lower circuit on concerns of weaker second-quarter
financial results.
EPCL declared its financial results for first half, posting earnings per share of Rs1.58 that stood short of
investors expectations, which pulled its stock price down by 2.08pc.
August 09, 2017
Shares slide amid rising political temperature

KARACHI: Political chaos has reared its head again just when stock investors thought that uncertainty was
over with the ouster of former premier Nawaz Sharif.
The KSE-100 index suffered a steep fall of 486 points (1.05 per cent) on Tuesday and closed at 45,979.70.
The market has lost as many as 1,261 points (2.4pc) in the last three trading sessions only.
The market opened and traded sideways until afternoon, making an intraday high by 52 points.
But panic-selling swept through the market as Pakistan Awami Tehreek chief Tahirul Qadri addressed a public
gathering in Lahore, criticising Mr Sharif and the Punjab chief minister.
While the Pakistan Tehreek-i-Insaf has turned up the heat on the government, the former premier has
announced that he will go to Lahore from Islamabad today via G.T. Road.
This led to selling pressure from foreign as well as local participants.
The volume was down 15pc over the previous day to 206 million shares while the value decreased 13pc to
Rs8.8 billion.
Volume leaders were second-tier stocks, such as Summit Bank, K-Electric and TRG Pakistan.
According to Intermarket Securities, major contribution to the downside came from Engro Corporation, which
went down 2.5pc, followed by Sui Northern Gas Pipelines 3.39, United Bank 1.49pc, Fauji Fertiliser 2.53pc
and Habib Bank 0.74pc, taking away 169 points from the index.
Pakistan State Oil hit its upper limit as the company announced a dividend of 20pc, although its earnings
remained in line with analyst expectations.
JS Global said heavyweight stocks in the banking sector dragged the index down by 56 points. Besides United
Bank and Habib Bank, Allied Bank and National Bank were major laggards in the sector as they lost 1.02pc
and 0.33pc, respectively.
August 10, 2017
Stocks manage modest gains after three-day
losses
KARACHI: The KSE-100 index ended flattish with slight upside of 19.11 points (0.04 per cent) at 45,998.81 on
Wednesday after losing over 1,100 points in the last three sessions.
Foreign investors were major sellers of stocks worth $20 million. However, local participants were able to
absorb all of the foreign sell-off, which helped the index recover from its deep intraday plunge of 338 points.
Political noise remained a dampener as former prime minister Nawaz Sharif kicked off his defiant march that
will continue for more than two days, from Islamabad to Lahore.
As political temperatures soar, most market participants are worried over the return of uncertainty that had
taken PSX hostage for a long time. Politics has also overshadowed the financial results season where except
for surprisingly positive earnings and payouts from some companies investor sentiments remained
unstirred.
Traded volumes on Wednesday improved 4pc over the previous day to 214m shares whereas traded value
increased 56pc to Rs 13.8 billion.
Elixir Securities said the market started on a weaker note and notable blue chips across oils, financials and
cements along with select index names were dragged down by mid-day on selling, amid dearth of serious
buyers on screen.
Topline Securities noted that major gainers on Wednesday included PSO which went up 2.8pc, ISL 5pc,
EFERT 2.9pc, MCB 1.1pc and TRG 4.3pc, contributing 107 points to index. On the flip side, POL lost 0.5pc,
KTML 2pc and PKGS 2.2pc, erasing 23 points. Steel stocks ASL and ISL closed near upper limits while INIL
rose 4.32pc on the back of surge in international CRC prices which approached year high.
JS Global noted that commercial banks heavyweights contributed negatively to the KSE-100 index, led by
HBL 1.46pc, UBL 1.93pc and NBP 0.21pc. E&Ps also declined on lower oil prices with POL 0.50pc, PPL 1.26pc
and OGDC 1.04pc losing ground.
August 11, 2017
Stocks lose 365 points on profit-selling
KARACHI: Regardless of the foreign selling of $20 million the previous day, the Pakistan Stock Exchange
(PSX) opened on a resilient note on Thursday and remained in the positive territory till mid-day making an
intraday high by 214 points.
However, in the face of political headwinds, investors decided to tread cautiously and trim their portfolios.
The KSE-100 index thus succumbed to heavy selling pressure.
After touching the intra-day low by 427 points, the index rebounded slightly to close at a loss of 365 points
(0.79 per cent) at 45,634.02.
Ahsan Mehanti of Arif Habib Corp said the pressure remained on scrips across the board amid concerns for
foreign outflows and prevailing political uncertainty. Institutional support was witnessed in textile stocks after
refund payments to the textile industry.
The trading volume decreased 18pc over the previous day to 175m shares while the traded value declined 32pc
to Rs9.3bn.
Intermarket Securities noted that the major contribution to index downside came from SNGPL which was
down 4.9pc, followed by Habib Bank 0.88pc, Hubco 1.44pc, Engro Corp 1.24pc and ISL 1.72pc, taking away
150 points.
On the flip side, Lucky Cement gained 1.25pc, followed by Meezan Bank 1.92pc and Kohinoor Textile 1.9pc,
adding only 42 points.
Some of the stocks that closed on their lower circuit breakers included Taha Spinning Mills which was down
by Rs11.69, followed by Mirpurkhas Sugar Rs7.95, Tariq Glass Rs5.74, Altern Energy Rs2.42 and Sakrand
Sugar Rs1.28.
Pak Elektron announced its second-quarter earnings of Rs3.3 per share, down 6pc year-on-year. The
companys sales, however, remained lower possibly due to higher discounts offered on appliances.
Consequently, the stock closed down 3.9pc.
Maple Leaf Cement also closed down 3.6pc on market chatter of a possible right issue that affected investors
sentiment as it would dilute the stock price.
Hubco turned red after disclosure from Kot Addu Power, which was down 0.16pc, announced its interest in
acquiring a stake in Hubco.
August 11, 2017
CORPORATE WATCH
Pak Elektron profit soars
KARACHI: Pak Elektron Limited (PAEL) posted a 20.7 per cent growth in its consolidated profit-after-tax
(PAT) to Rs2.73 billion (earnings per share Rs5.49) for the six months ended June 30 compared to Rs2.26bn
(EPS: Rs4.55) in the corresponding period last year.
The companys board of directors met on Thursday and declared an interim cash dividend of Rs1.50 (15pc) per
share.
Net revenue was up 15.5pc to Rs19.4bn from Rs16.8bn and operating profit improved to Rs4bn from Rs3.5bn.
Net earnings for the 2QCY17 stood down by 6pc YoY to Rs1.63bn (EPS Rs3.27) from Rs1.74bn (eps: Rs3.49).
Syed Waqas Imam, analyst at Intermarket Securities, commented that the major reason for the earnings
decline in 2QCY17 was the increase in sales discounts (25pc of revenues) to push sale of appliances in a highly
competitive market. Major discounts were offered in split ACs market in which there was greater competition
than in refrigerators, analyst said.Equities Correspondent
K-Electric approves 900MW power plant
KARACHI: The board of directors of K-Electric Limited (KEL) on Thursday gave its approval to the
development of a 900-megawatt (2x450 MW) RLNG-based combined cycle power plant at Bin Qasim Power
Station Complex, subject to the completion of all statutory and regulatory requirements.
The power utility said in a notice to the Pakistan Stock Exchange that a favourable result of the companys
review petition on Multi-Year Tariff determination 2017, pending with the National Electric Power Regulatory
Authority, was critical for financing and development of this mega project.
Stocks drop as political showdown intensifies

August 12, 2017
KARACHI: Stocks continued to bleed on Friday as the KSE-100 index shed 346 points (0.76 per cent) to close
at 45,288 points. Political noise restrained institutional investors from building fresh positions while retail
investors also stood on the sidelines ahead of the long weekend (market to remain closed on Monday on
account of Independence Day).
Stocks at the PSX seem to be sinking in the political quagmire with fearful upcoming episodes of PTIs show of
strength on Sunday night; cleric Tahirul Qadris sit-in on Wednesday in Lahore and the ongoing onslaught by
a defiant former prime minister Nawaz Sharif.
The overall selling pressure pushed the market to new lows well below technical support and on the verge
of lower channel support taking cumulative losses to 1,953 points from intraday high posted on Aug 4,
Intermarket Securities said in its daily report.
Major contribution to the total market volume of 114 million shares on Friday came from ANL, TRG and ASL.
Heavyweights HBL, PPL, ENGRO, PSO and OGDC were top laggards which cumulatively pulled the index
down by 150.62 points.
Steel stocks, ISL and ASL, gained Rs1.89 and Rs0.29, respectively, on the back of increase in prices of their
products, noted analyst Zoha Amjad at Aba Ali Habib Securities.
MARI gained 1.08pc, TRG 1.89pc and ICI 2.37pc, adding only 23 points to the index.
Meanwhile, Engro Foods declared results on Friday posting lower-than-expected numbers which saw its stock
hit the lower limit. HBL too traded in the red after announcing below-expected quarterly earnings.
Ahsan Mehanti at Arif Habib Corp commented that stocks closed lower amid thin trade also due to pressure in
global equities on geopolitical risk. Concerns over widening trade deficit, falling foreign exchange reserves and
circular debts in energy sector were sentiment dampeners at the PSX.
Political cacophony unnerves investors
KARACHI: The outgoing week brought devastation for stock investors, with the KSE-100 index plunging by
1,589 points (3.4 per cent) to close at 45,288.
The trading volume remained thin as participants were cautious because of continued political uncertainty.
Even the ongoing result season failed to boost sentiments. Arif Habib Ltd attributed the adverse performance
during the week to investors nervousness over the political show of strength, heavy foreign selling and
unimpressive economic data, such as a widening trade deficit and declining foreign exchange reserves.
Topline Securities stated that investors booked gains in the outgoing week after rising 2.1pc in the earlier
week. Political theatre drew the masses again as ousted premier Nawaz Sharifs cavalcade drove from
Islamabad to Lahore with leaders of his rival party also breathing fire.
The average trading volume dipped 46pc to 190 million shares. Major trading was witnessed in retail
favourites led by Azgard Nine, TRG Pakistan and K-Electric. The average traded value declined 42pc to Rs9.6
billion.
Foreigners sold equities worth $31.2m during the week. Foreign selling was concentrated in oil marketing
companies ($8.5m), banks ($6.7m), exploration and production companies ($6.3m) and cements ($4.3m).
The foreign sell-off was absorbed by insurance companies that bought shares valuing $7.4m followed by
mutual funds ($6.5m).
According to Arif Habib Ltd, commercial banks took away 336 points from the index, followed by fertilisers
251 points, cements 238 points, oil and gas exploration companies 185 points, and power generation and
distribution companies 104 points.
Topline Research calculated sector-wise index erosion, with engineering going down 7pc, fertiliser 5pc,
cement 4pc, power 4pc, exploration and production 3pc, banking 3pc, auto 3pc and oil marketing 2pc.
AKD Securities stated that performance-wise, three scrips managed to close the week on a positive note:
Pakistan State Oil (4.88pc), Indus Motor (1.79pc) and Bank Alfalah (0.07pc). Laggards included Maple Leaf
Cement (14.67pc), Engro Foods (12.08pc), Pak Suzuki (11.44pc), Engro Corp (7.44pc) and Fauji Fertiliser Bin
Qasim (6.57pc).
Outlook: Investors continue to await clarity on the political scenario. Ongoing foreign selling due to the
expected rupee depreciation may also keep the market under pressure.
We anticipate the volume to remain weak, Elixir Securities stated. The brokerage added that important
financial results in the next week include International Industries, Hub Power Company, Bank Alfalah and
Engro Corporation.
Arif Habib Ltd had a mixed view as a political party will start protests from Aug 16, which can keep the market
jittery.
AKD Securities wrote in its weekly report that the ongoing show of strength by various political parties was
expected to hurt investor confidence. Individual scrips, such as International Steels, Shell Pakistan, Hub
Power Company, Allied Bank, Bank Alfalah and Engro Corp, ought to be watched as they will announce their
financial results next week, it said.
Moreover, looming concerns about the rupee depreciation can divert investors attention towards sectors that
may benefit from the move, such as textile, exploration and production and power.
WEEK 7: 15-18 AUGUST

PSX bears full brunt of uncertainty as benchmark
index slides 1,389 points
The Pakistan Stock Exchange (PSX) saw a bloodbath on Tuesday, with the benchmark KSE-100 Index losing
1,389 points.
The benchmark index plunged 3.07 per cent, falling through the 44,000 level to close at 43,899 points. The
market touched the day's high at 45,419 as the benchmark showed some positive movement in the first few
minutes, but failed to sustain the momentum.
The benchmark recorded a day's low of 43,822 points near the close of the trading session.
The banking sector led activity at the bourse, with 31.3 million shares traded, followed by the chemical and the
engineering sectors with 19 and 15.5 million shares, respectively.
A JS Global report attributed the sharp decline in the KSE-100 index level to the political uncertainty and
selling pressure from foreign investors.
"OGDC (-3.95pc), ENGRO (-4.28pc), HBL (-1.76pc), MCB (-3.54pc) and HUBC (-3.35pc) were among major
laggards that dragged the index down," said the report.
"SSGC (-5pc) hit its lower lock on the back of news regarding OGRA cutting rate for Sui Southern gas by Rs10
per unit. ISL (-4.24pc) closed near its lower circuit. The company announced its year-end results posting an
EPS of Rs7 and a final cash dividend of Rs3.50," it said, adding that the oil and gas exploration and production
(E&P) sector closed in the negative zone as oil prices slid for a second session, plumbing fresh three-week lows
on a stronger dollar and concerns over a global supply glut.
According to the report, PPL (-2.93pc), POL (-2.04pc) and OGDC (-3.95pc) were among the losers from the
aforementioned sector. PSO (-2.23pc), SSGC (-5pc) and SNGP (-5pc) from the oil marketing companies sector
also witnessed selling pressure in the sinking market despite positive news for the sector where the Economic
Coordination Committee is expected to consider increasing profit margins of oil marketing companies and
dealers through prices of petroleum products.
MLCF (-4.14pc) from the cement sector released material information which stated an announcement of
12.50pc rights share issue at a price of Rs65/share for its grey clinker production, it added.
Ahsan Mehanti of Arif Habib Corporation said that the stocks closed bearish after reports emerged that the
former premier would file an appeal, pleading the Supreme Court to dismiss the Panama Papers verdict.
"Foreign outflows, falling global crude prices, concerns for $3.2bn dismal trade deficit data for Jul'17 and
pending circular debt in energy sector played a catalyst role in bearish close at the PSX," he said.
A total of 85.4m shares of KSE-100 companies changed hands during the session, with a total worth of nearly
Rs6.9 billion.
Stocks of 379 companies in all were traded on the exchange, of which only 39 gained in value, whereas 326
B.O.Punjab: 12.4m shares traded [-4.97pc];
Lotte Chemical: 8.4m shares traded [-8.14pc];
August 16, 2017
Stocks make gains after Tuesday's slide

Pakistan Stock Exchange (PSX) recovered slightly after Tuesday's bloodbath, with the benchmark KSE-100
index gaining 288 points, or 0.65 per cent, to close at 44,187 on Wednesday.
The index hit a low of 43,782 points, but recovered to touch a day's high of 44,333 points towards the session's
close. Nearly 87 million shares worth Rs7.9 billion were traded during the day.
"After a bloodbath session yesterday, the market witnessed a recovery of 287 points today to close at 44,187
with thin volumes of 187 million shares," read a note from JS Global.
"The continuity of political uncertainty has resulted in investors switching from growth stocks to value plays,"
it said.
The textile sector dominated the day's trading with 22.5m shares traded, while engineering and cement
followed with 20.77m and 18.75m shares traded respectively.
Stocks of a total of 357 companies were traded in the day, of which 193 advanced, 149 declined and 15
remained unchanged.
Dewan Motors: 7.1m shares traded [-3.34pc].
August 17, 2017
Stocks crash into the red as benchmark index
loses 1,051 points
The Pakistan Stock Exchange (PSX) landed in the red for the third time in the week, with the benchmark KSE-
100 index losing 1,051 points, or 2.38 per cent, to fall below the 44,000 mark.
The market hit the day's high of 44,257 points early in the session, but continued on a downward spiral to hit
the day's low of 43,044 points towards the day's close. A total of 77.6 million shares worth Rs6.75 billion were
traded during the day.
Stocks of 358 companies were traded in the day of which only 50 advanced, while 298 declined and 10
remained unchanged.
Commercial banks dominated the day's trading with 21.1m shares traded, while engineering and textile sectors
Azgard Nine: 11.4m shares traded [-4.35pc]
B.O.Punjab: 11.1m shares traded [-2.74pc]
TRG Pak Ltd: 9.6m shares traded [-4.46pc]
Aisha Steel Mill: 9.0m shares traded [-5.00pc]
Sui South Gas: 7.7m shares traded [-4.37pc]
Stocks stage partial recovery

Our Equities CorrespondentAugust 17, 2017
KARACHI: Stocks bounced back on Wednesday to cover some of the losses after a massive plunge of over
three per cent in the previous session. The KSE-100 index recovered 287.51 points (0.65pc) to close at 44,186.
The traded volume was down by 2pc over the earlier day to 187 million shares whereas the traded value was
up 13pc to Rs10.3 billion, signifying that big market capitalisation stocks attracted buyers.
The volume leaders remained the second-tier stocks, which included ANL, ASL and TRG, contributing 38m
shares to the total as individuals (mainly retail investors) changed places with the foreign investors.
In contrast to Tuesday, individuals took faith and bought stocks worth $3.8m. Foreigners, who had seized the
opportunity to buy stocks at attractive prices in the bloodbath a day earlier, came in to book profit with net
sale of $3.8m.
Topline Securities identified five main contributors to the index rise as SNGP which went up 4pc, Engro Corp
2.2pc, HBL 0.9pc, OGDC 1.7pc and DAWH 3.4pc, adding 146 points. On the other hand, Lucky Cement was
down 1.6pc, PPL 0.6pc, SEARL 2.3pc, POL 1.3pc and EFoods 5pc, taking away 69 points.
The continuity of political uncertainty has resulted in investors switching from growth stocks to value plays,
asserted analysts at JS Global.
Despite increase in the overall OMC sectors prices, Shell closed flat as its earnings were unveiled at Rs21.85
per share for first half.
Commercial banks heavyweights MCB was up 0.96pc, HBL 0.81pc, UBL 0.18pc, and NBP 1.45pc, contributing
53 points to the index.
Steel stocks, which had taken heavy beating on Tuesday, recorded across-the-board increase with ASL up
1.90pc, ISL 4.13pc, INIL 4.98pc, recovering on attractive valuations.
August 18, 2017
Pakistan Stock Exchange closes flattish as

benchmark index sheds 58 points
The Pakistan Stock Exchange (PSX) on Friday closed flattish, with the benchmark
KSE-100 Index losing 58 points, or 0.13 per cent, after witnessing a mid-day bearish
trend.
The market hit the day's high of 43,187 points in the second half of the session, after
touching a day's low at 42,347 points in the first half before adopting an upward
trajectory.
A total of 88m shares of KSE-100 companies changed hands during the session, with
a total worth of nearly Rs9 billion.
"Stocks closed lower amid concerns for political uncertainty and weak financial
results," said Ahsan Mehanti of Arif Habib Corporation.
He said that a surge in global crude prices amid falling United States inventories and
reports that Nawaz Sharif and his sons would not appear for an accountability
hearing invited mid-session support.
"Foreign outflows, concerns for economic uncertainty and dismal trade deficit data
for July 2017 played a catalyst role in the bearish close at the PSX," he added.
Stocks of 362 companies were traded on the day of which only 145 advanced, while
196 declined and 21 remained unchanged.
The engineering sector dominated the day's trading with 24m shares traded, while
the banking and the textile sectors followed with 24.7m and 21.7m shares traded
respectively.
WEEK 8 21-25 AUGUST
August 21, 2017
Bears pull benchmark index 925 points lower

The Pakistan Stock Exchange (PSX) on Monday landed deep in the red, with the benchmark KSE-100 Index
losing 925 points.
The index plunged 2.15 per cent over the course of the day to close at 42,153 points, touching a day's high at
43,135 points in the first few minutes after market opening, then sliding to the day's low of 42,017 points near
the close of the trading session.
The banking sector led activity at the bourse, with 26.9 million shares traded, followed by the cement and the
textile sectors with 18.3m and 18.2m shares, respectively.
"Stocks closed lower amid concerns for political uncertainty and weak financial results," said Ahsan Mehanti
of Arif Habib Corporation.
"Foreign inflows and surge in global crude prices amid falling United States inventories supported the index to
close above the day's low," he said adding that the concerns over economic uncertainty, falling foreign
exchange reserves and dismal trade deficit data for July 2017 had played a catalyst role in the bearish close.
A total of 78.9m shares of KSE-100 companies changed hands during the session, worth nearly Rs6.3 billion.
Stocks of 364 companies in all were traded on the exchange, of which only 44 gained in value, whereas 310
B.O.Punjab: 12.4m shares traded [-5.72pc];
August 22, 2017
Stock market closes tense session after recouping
major losses; index down 170 points
Bears ripped into the Pakistan Stock Exchange (PSX) early Tuesday, with the benchmark KSE-100 index
plunging over 1,000 points within the first hour of trading to hit the day's low of 41,063.
However, renewed interest from institutional buyers helped the index recover to touch a high of 42,291 points
before closing with a total loss of 170 points, or 0.40 per cent, at 41,983.
"[...] Hefty buying in heavyweight stocks during the latter hours resulted in a major recovery in the KSE-100
Index," reported an analyst note from JS Research.
"We believe negativity in the market continues on the back of political uncertainties and concerning economic
indicators. Also, redemptions from mutual funds are likely to cause further selling pressure," it added.
Nearly 112 million shares of KSE-100 scrips, worth Rs9.74 billion in total, were traded during the day. Shares
of 354 companies in all were traded, of which 98 advanced, 242 declined and 14 remained unchanged.
The cement sector dominated the day's trading with 25.7m shares traded. Engineering and oil and gas
followed with 24.5m and 21.5m shares traded.

K-Electric Ltd: 10.4m shares traded [0.00pc]
August 23, 2017
PSX shrugs off recent routs, gains 928 points as

bulls take over
The Pakistan Stock Exchange (PSX) experienced a strong upswing on Wednesday, with the KSE-100 Index
surging 928 points, or 2.21 per cent, to close at 42,911 points, breaking a four-day bearish streak.
The index had gained over 550 points in just the first half hour of trading as investors jumped at the
opportunity to take positions at lower prices. The buying trend continued over the day, with the index
touching a high of 42,950 points towards day's close. The day's low of 41,927 points was left in the dust very
early in the session.
KSE-100 volumes touched 82 million shares, worth Rs7.5 billion.
The cement sector dominated the session with 21.6m shares traded. Engineering and technology scrips
"Market opened positive and quickly edged up in early trade as index names fetched interest from local
institutions on attractive valuations and relative calm on political front. All major sectors, including the
lagging cements, bounced back, while mid- and small-cap plays also closed higher, albeit on relatively less
volumes, on retail buying," an analysis report from Elixir Securities said.
Stocks of 387 companies were traded in total, with 200 advancing, 74 declining and 13 remained unchanged.
"We expect further recovery in the following sessions and recommend investors to book profits on any
possible selling opportunity," a JS Research note read.
TRG Pak Ltd: 14.3m shares traded [+3.83pc]
Azgard Nine: 12.7m shares traded [+6.52pc]
Aisha Steel Mill: 8.8m shares traded [+5.17pc]
Pak Elektron: 7.2m shares traded [+4.75pc]
Power Cement: 5.8m shares traded {+8.95pc]
August 24, 2017
Bears claw back as benchmark index loses 642

points
Bears returned to the Pakistan Stock Exchange (PSX) on Thursday, lopping off 642 points from the
benchmark KSE-100 index and pulling it down to a close at 42,269.
The index started the day with modest gains in the beginning of the session, crossing the 43,000 mark and
touching 43,173 points before profit-taking pulled it down the day's low of 42,136 towards the close of trading.
Nearly 185 million stocks worth Rs10.05 billion were traded on the exchange over the day. A total of 347
symbols were traded, of which 104 advanced, 257 declined and 13 remained unchanged.
"Stocks closed lower amid pressure on institutional profit taking in overbought oil, cement and fertiliser
stocks," Ahsan Mehanti of Arif Habib Corporation said in a note.
He added that investors weighed the uncertainty over the outcome of United States President Donald Trump's
recent statements on Pakistan's efforts to curb militancy and terrorism, which led to higher selling.
The textile sector dominated the day's trading with 30.6m shares traded, while engineering and technology
sectors followed with 21.5m and 20m shares traded respectively.

Azgard Nine: 21m shares traded [-3.83pc]
TRG Pak Ltd: 17.1m shares [-4.98pc]
Aisha Steel Mill: 9m shares traded [-4.32pc]
Lotte Chemical: 8.9m shares traded [-9.37pc]
Dost Steels Ltd: 6.5m shares traded [-2.77pc]
August 25, 2017
PSX ends the week in green as index regains 373

points
The Pakistan Stock Exchange (PSX) ended the last trading day of the week in the green, with the benchmark
KSE-100 index gaining 373 points, or 0.88 per cent, to close at 42,642 on Friday.
Bears dominated trading early in the day, with the index falling below the 42,000 mark to touch a day's low of
41,836 points. However, the index recovered soon after to hit a high of 42,785 points in the second half of
trading.
Nearly 177 million stocks worth Rs9.38 billion were traded in the market on Friday. Stocks of 359 companies
were traded, of which 232 advanced, 116 declined and 11 remained unchanged.
The technology and communication sector dominated the day's trading with 29m shares traded, with cement
and commercial banks following with 19.5m and 18.2m shares traded respectively.
K-Electric Ltd: 15.5m shares traded [+1.30pc]
B.O.Punjab: 11.2m shares traded [-0.73pc]
Power Cement: 7.90m shares traded [0.37pc]
Stock market sell-off resumes, index drops below

42,000 points
The benchmark KSE-100 Index once again closed lower on Monday, losing 1.57pc amidst tight volumes as the
index slid below 42,000 points to close at 41,974 points.
The US's recent decision to censure Pakistan for what it perceives is the latter's role in the subversion of its so-
called 'war on terror', along with reigning uncertainty in domestic politics continued to exert pressure on the
market. The cherry on top was an early morning disclosure by HBL Bank that it's New York operations were
going to be shut down after US authorities pushed ahead with a $630 million penalty for non-compliance with
regulations.
KSE-100 volumes remained constricted, dropping from 82.6m in the preceding session to 53.4m today.
Values were similarly lower, dropping from Rs7.58 billion on Friday to Rs4.56bn today.
A total 343 symbols were traded on the stock exchange on Monday, of which 238 declined, 81 advanced and
24 remained unchanged. Overall volumes were also lower, clocking in at only 103m shares worth Rs5.7bn.
Volumes were led by textile stocks (15.9m shares traded), followed by technology and communication scrips
(14.3m shares traded) and oil and gas marketing companies (12.65m shares traded).
Volume leaders for the day included:
1. Azgard Nine: 12.75m shares traded (-6.29pc)
2. TRG Pak Ltd: 11.5m shares traded (-4.99pc)
3. Sui South Gas: 7.89m shares traded (-0.13pc)
4. Bank of Punjab: 4.41m shares traded (-3.97pc)
5. Sui North Gas: 3.68m shares traded (+0.52pc)
August 29, 2017
PSX continues to fall as KSE-100 loses 741 points

The bearish trend continued at the Pakistan Stock Exchange (PSX) on Tuesday, with the benchmark KSE-100
Index losing 741 points, or 1.77 per cent, to close at 41,223 points.
The index lost 281 points within the first few minutes of trading with Monday's close of 41,974 remaining the
day's high. The downward spiral continued with the market hitting the day's low of 41,046 points towards the
day's close.
Pundits attributed the continued sell-off to the US's decision to seek a hefty penalty for HBL Bank, one of the
largest lenders in the country, for failing to comply with regulations in the US. Global tensions over a new
missile test by North Korea contributed to the negativity.
Close to 130 million shares worth Rs5.99 billion of a total of 349 companies were traded on the market. Stocks
of only 59 companies advanced, while 277 declined and 13 remained unchanged.
Commercial banks dominated the day's trading with 19.2m shares traded, while technology and textile scrips
Sui South Gas: 7.7m shares traded [+2.34pc]
K-Electric Ltd: 6.2m shares traded [-2.09pc]
August 30, 2017
PSX breaks bearish streak as KSE-100 index

gains 91 points
With the KSE-100 index gaining 91 points or 0.22 per cent by the day's close, the Pakistan Stock Exchange
(PSX) landed in the green on Wednesday after losing over 1,500 points in the first two days of the week.
Despite losing 178 points within the first 10 minutes of trading to touch a low of 41,046 points, the index
bounced back to float between the 41,200 and 41,500 mark throughout the day before eventually closing at
41,324.
Close to 132 million stocks valued at around Rs7.09 billion were traded on the market on Wednesday. A total
of 330 symbols were traded in the day, of which 177 advanced, 138 declined and 15 remained unchanged.
"Upbeat financial results, surging textile exports, reports of rising cement dispatches and speculations ahead
of likely revision in local petroleum prices played a catalyst role in bullish close," Ahsan Mehanti of Arif Habib
Corporation said in a note
Technology and communication sector dominated the day's trading with 22.5m shares traded, while textile
and banking followed with 21.4m and 15.6m shares traded respectively.
B.O.Punjab: 8.7m shares traded [+5.03pc]
August 30, 2017
KSE-100 index drops to years lowest level

KARACHI: Doom and gloom deepened on Tuesday in the stock market, which saw the KSE-100 index sink by
741 points (1.77 per cent) to the years lowest level of 41,233.08.
Investors were in a state of panic as the Habib Bank (HBL) debacle added to confidence dampeners: lack of
triggers, listless trading, and political and economic woes.
The index managed to recover slightly after an earlier intraday low by 928 points. For the second day, HBL
closed at its lower circuit with a loss of Rs10.36 per share. But that was not half as frightful as the stock trading
in the off-market where 1.5 million shares of HBL changed hands at a discount of 21pc to the days closing and
29pc below Fridays stock price.
HBL alone contributed 150 points to the index decline while the entire banking sector dragged the benchmark
down by 288 points. The head of research at a major brokerage firm said HBL carried 7pc weight in the index
and much of its free-float was with foreign investors who were already sellers.
Net foreign outflows amounted to $1.73m while individuals also jettisoned stocks worth $2.54m. Mutual
funds remained on the sidelines with a minor net sale of $0.94m. Mutual funds are sitting on around Rs60bn
in cash waiting for stocks to further bleed before swooping in, observed a prominent broker.
Along with HBL, the sentiment spoiler was Mari Petroleum, which also closed at its lower lock. According to
Topline Securities, top contributors to the index decline other than HBL and Mari Petroleum were MCB Bank,
down 2.5pc, United Bank 2pc and Fauji Fertiliser 3.3pc.
Dawood Hercules went up 4.3pc, Sui Northern Gas Pipelines 1.7pc, Kohinoor Textile Mills 2.7pc, Sui Southern
Gas 2.3pc and Standard Chartered Bank 5pc.
Heath care stocks also ended in deep red with The Searle Company going down 4.51pc, followed by Abbott
Laboratories 4.48pc, Ferozsons Laboratories 5pc and GlaxoSmithKline Pakistan 2.87pc.
August 31, 2017
Stocks close lower as investors remain cautious

ahead of Eid
Bears returned to the Pakistan Stock Exchange (PSX) on Thursday, pushing the benchmark KSE-100 index
down 117 points, or 0.28 per cent, to close at 41,207.
The index lost over 450 points in the early hours of trading to touch a day's low of 41,363 as volumes remained
restricted amidst heavy rainfall in Karachi, the country's financial hub, and as investors chose to play safe
ahead of Eidul Azha holidays. However, it bounced back in the second half to cross the 43,000 mark.
Nearly 70.6 million shares valued at Rs5.42 billion were traded in the market. 196 of a total of 320 symbols
advanced, 109 declined and 15 remained unchanged.
Foreign outflows, concerns over weak Pak-US relations and the recent penalty on Habib Bank Limited by New
York State Department "invited pressure in the banking sector" and led to Thursday's bearish close, Ahsan
Mehanti of Arif Habib Corporation said in an analyst's note.
Commercial banks dominated the day's trading with 10.1m shares traded, while technology and engineering
TRG Pak Ltd: 7.6m shares traded [+4.46pc]
United Bank Ltd: 4.1m shares traded [-1.86pc]
K-Electric Ltd: 3.6m shares traded [-0.49pc]
Aisha Steel Mill: 3.0m shares traded [+4.97pc]
August 31, 2017
Stocks gain 91 points despite foreign selling

KARACHI: The Pakistan Stock Exchange (PSX) managed to avert a further fall on Wednesday as savvy
investors went cherry picking, which helped KSE-100 index gain 91 points and close at 41,323.
Having already lost 11,643 points or 22 per cent since the index hit its peak at 52,876 on May 24, investors
were generally undecided whether it was time to buy. Foreign investors continued to sell, showing an outflow
of $6.42 million from the equity market on Thursday. However, companies and banks tried to absorb some of
the foreign sell-off by purchasing stocks worth $4.41m.
For now it seems as if 41,000 points is turning out to be a strong technical support as the benchmark index
after taking an initial dip managed to recoup from intraday losses and closed on a buoyant note on Thursday,
stated Intermarket Securities in its day-end report. Noticeable was the slight decline of 7.67 points in the KSE-
30 market-capitalization based index Elixir Securities affirmed that HBL continued to ruffle investors
feathers by hitting third consecutive lower circuit. In the off-market the stock traded at 14pc discount to the
days closing price with a volume of 3.9 million shares.
Overall volumes improved by 2pc over the previous day to 132m shares on Thursday while traded value was
up 18pc to Rs7.1billion. Major contribution of 48m shares to total market participation came from TRG, ANL
and BOP. Top 10 contributors to index points included Nestle, which went up 4.6pc, DGKC 5pc, Lucky Cement
1.8pc, MLCF 5pc, PAKT 5pc, MTL 3.7pc, Engro Corp 1pc, BAFL 3.4pc, PAEL 4pc and THALL 3.5pc, adding
221 points.
Analysts at JS Global affirmed that the positivity came from the cement sector on the back of improved
provisional off-take numbers. Oil prices slid as disruptions from tropical storm Harvey continued. Mari
Petroleum and PPL were down by 4.53pc and 0.54pc.
Published in Dawn, August 31st, 2017
September 01, 2017
Shares resume free fall amidst thin volume

KARACHI: Shares on the Pakistan Stock Exchange (PSX) resumed their free fall on Thursday after a day of
hiatus.
The KSE-100 index sank to its intraday low by 481 points at the start of the session. However, bulls woke up
from deep sleep in the last 30 minutes of the trading session. The index closed with trimmed losses of 117
points (0.28 per cent) at 41,207.
The volume dropped 36.5pc on a day-to-day basis to the years low of 70.5 million shares. The value fell to
Rs5.45 billion from Rs7.09bn a day ago. Foreigners continued their selling spree with a net outflow of $5.52m.
Mutual funds also decided to sell equities worth $2.1m, raising their pile of cash for future investment in
battered stocks.
However, other local participants, such as banks, companies and even individuals, took fresh positions in both
big-cap and mid-tier stocks.
Major contribution to total market participation came from TRG Pakistan, United Bank and Azgard Nine,
which cumulatively contributed 15m shares.
Slump in the volume in todays session can be attributed to uncertainties at the political and economic fronts
coupled with a heavy rainfall in the city, which kept investors away, stated dealers at JS Global.
According to Intermarket Securities, major contribution to the index decline came from Habib Bank, which
went down 5pc, Oil and Gas Development Company 2.34pc, Lucky Cement 2.72pc, Engro Corp 2.29pc and
United Bank 1.86pc, which took away a total of 293 points.
Dawood Hercules went up 4.92pc, MCB Bank 1.59pc and Millat Tractors 4.78pc, adding 84 points to the
index.
HBL opened at its lower lock for the fourth day in a row, contributing 136 points to the index decline. The
banks stock has lost 19pc value over the week. Mari Petroleum recovered slightly after closing at the lower
circuit for two consecutive sessions.
Published in Dawn, September 1st, 2017

Market Watch: Stocks Bloodbath As Pakistan Upgraded To MSCI Emerging Markets

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Market Watch: Stocks Bloodbath As Pakistan Upgraded To MSCI Emerging Markets

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Week 1 : 03-07 July 2017

Published: June 1, 2017SHARE TWEET

Market watch: Stocks bloodbath as Pakistan upgraded to MSCI Emerging

Published: July 3, 2017

Updated July 03, 2017

Bloodbath at PSX: benchmark index sheds 1,900 points

Updated July 04, 2017

2. TRG Pak Ltd: 14.20m shares traded [-0.26pc];

3. K-Electric Ltd: 13.45m shares traded [+0.29pc];

4. Habib Metropolitan: 7.56m shares traded [+0.95pc]; and,

5. Aisha Steel Mill: 7.24m shares traded [-0.52pc].

Updated July 04, 2017

2. Bank of Punjab: 16.3m shares traded (+0.27pc)

3. Engro Polymer: 8.8m shares traded (-1.03pc)

4. WorldCall Telecom: 8.8m shares traded (-4.00pc)

5. Ittefaq Iron Industries: 7.7m shares traded (+1.84pc)

July 06, 2017

Stock rally loses steam on currencys plunge

Index sheds 590 points on political uncertainty

Updated July 07, 2017

PSX concludes week on positive note as benchmark index

Reference to above highlighted statement:

Stocks manage to add 399 points in see-saw trade

Stocks lose 2.9pc in jittery week

WEEK 2: 10-14 JULY 2017

Challenge of dealing with shadows at PSX

Foreign stock investors wary of rupee fluctuation

2. TRG Pak Ltd: 16.8m shares traded (+4.98pc)

3. Summit Bank: 10m shares traded (+22.2pc)

4. Azgard Nine: 9.4m shares traded (+6.61pc)

5. Aisha Steel Mill: 9.3m shares traded (+5.12pc).

Updated July 11, 2017

Index drops to years lowest level

The traded value also decreased 42pc to Rs7.3 billion.

Stocks surge 1,113 points as bulls return to market

Index loses 218 points after three-day gains

Stocks post fresh losses in jittery trade

Index gains 234 points on institutional buying

WEEK 4: 24-28 July 2017

PSX commences week on positive note as benchmark

July 25, 2017

PSX gains 389 points amidst restrained activity

PSX closes nearly flat as benchmark index sheds

PSX closes nearly flat for second consecutive

Market closes flat after wild roller-coaster triggered

Stocks add 235 points to overnight gains

Stocks gain 389 points on select buying

Index closes flat in see-saw trade

Cloud of Panamagate verdict lingers on PSX

WEEK 5 JULY 31-04 AUGUST

PSX closes flattish after profit-taking reverses intra-day gains

PSX closes week on negative note as benchmark index sheds 207

PSX swings but settles for gains

August 01, 2017

Profit-taking wipes out early gains

Index gains 523 points on higher crude prices

Published in Dawn, August 2nd, 2017

Bull run continues on stock market

Published in Dawn, August 3rd, 2017

August 04, 2017

Index crosses 47,000 points on select buying

Published in Dawn, August 4th, 2017

August 05, 2017