Daily Times

KARACHI: Pakistan equities remained under pressure during the outgoing week amid continuing political and regulatory pressures and lack of triggers.

The benchmark KSE-100 sheds 782 points (week on week) to close at 48,409 points level.

Soft global oil prices, uncertainty from the Security and Exchange Commission of Pakistan (SECP’s) regulatory action to curtail margin financing and uncertainty over the sub judice Panama Papers case, gave way to risk-off sentiment.

Key news flows during the week were the State Bank of Pakistan (SBP) issued Rs 284 billion worth of short-term government papers. FTSE, in its semi-annual review earlier this month, included Habib Bank, Mari Petroleum, Searle Pakistan, Engro Fertilisers, Fauji Cement and Nishat Mills into its Global Equity Index Series Asia Pacific excluding Japan.

The General Electric (GE) will supply two units of supercritical steam turbines, boilers and generators for Hub Power’s 1,320MW coal power plant JV with China Power International Holdings. The power plant’s construction has started and a groundbreaking ceremony is expected on Tuesday, March 21, 2017. The facility is expected to enter commercial operations in 2019. Ministry of Finance approved payment of Rs 6 billion to PSO as an urgent case to avoid international default next week against fuel supplies.

Stocks leading the bourse were MEBL (+6.5%WoW), ASTL (+5.3%WoW), FATIMA (+3.6%WoW), and ICI (+3.5%WoW). On the other hand, laggards were HMB (-9.6%WoW), PPL (-6.9%WoW), (-5.1%WoW) and FFBL (-4.9%WoW). Volume leaders were KEL (100.2mn shares), BOP (63.0mn shares), TRG (43.9mn shares) and ASL (38.6mn shares). On the sector front, capitalization of E&P’s declined 4.7% WoW, while banks and fertiliser declined 2.4-2.1%.

Major drags on the index were PPL (-7% WoW), OGDC (-4.8%), UBL (-3.3%), MCB (-4.9%) & FFC (-2.6%), with combined negative contribution of 370 points. Oil stocks declined as crude oil price touched a low of $47.09/bbl, while banks declined due to markets concerns over inflation outlook and flattish profitability.

Foreigners were net sell of $11.1 million during the week as against buying of $15.4 million during the previous week. Major buying was seen in power ($2.9mn) & E&P’s ($1.4mn) whereas selling was seen in cements ($14.6mn).