Daily Times

KARACHI: The bullish sentiments proved short-lived on the weekend session as investors’ main focus remained on cow counting rather than trading. The benchmark KSE 100 index shed 116.66 to settle down at 41206.99 ahead of Eid holiday.

Besides being shortened & rain-lashed, trading during the week preceding Eid was underpinned by HBL’s (-19% WoW) tactical nuke of a penalty ($630mn though yet to be imposed).

Consequently, KSE-100 tanked 3.4%/1,435 points (HBL 588 points), closing at yet another low.

Negotiated deals for HBL were executed as low as Rs155/share a 30% discount to pre-fine levels. While 13% discount between HBL’s market price and deal price guarantees that next week wont be a pretty either.

Participation thinned with average volume/value plunging 39%/38%. Meanwhile, Thursday’s turnover of 70.5 million share was a 3-year low as the metropolis faced transport difficulty due to rain.

Sector wise banks (-6% WoW) were the worst for obvious reasons, followed by E&Ps (-5%) as news of MARI’s divestment & a 4% decline in int’l oil prices dampened sentiments; while Tobacco (+2%) & Food (+1%) stood out as gainers.

Companies (+$10.5 million) were the largest domestic buyers, while Foreigners sold $8.8 million during the week (28th-30th) as compared to selling $9.8 million last week; selling concentrated in Banks ($8.1 million) and Cements ($2.9 million), while Food saw $0.8 million buying.

During the month of August 2017, KSE-100 shed 10.4%, making it the worst month since May 2010 and worst August performance since 2008.

Kohinoor Textile Mills (KTML) informed the bourse of long term equity investment upto Rs 527 million by way of acquisition of ordinary shares from shareholders of Maple Leaf Capital Limited (MLCL), an associated company, within one year. KTML currently owns 250 million shares (82.92%) of MLCL, after the proposed acquisition (upto 51.5 million shares at price upto Rs10.24/sh), MLCL will be a wholly owned subsidiary of KTML.

TPL Properties (TPLPL) notified the bourse that Securities and Exchange Commission of Pakistan has acceded to the request of TPLPL for the removal of the minimum trading lot size of 100,000 shares for trading in its shares in the secondary market by the investors including the retail investors.

Pakistan Stock Exchange (PSX) will remain closed from Friday to Monday, on account of Eidul Azha and trading will resume from Tuesday.

Published in Daily Times, September 1^st 2017.