Daily Times

Karachi: Pakistan equities ended the week on a bearish note following pressure on blue chip oil stocks amid concerns for foreign outflows, surging circular debt in the energy sector and dismal payouts in the earnings season. Market rose by 211 points but profit taking in the second half, amid last day of futures roll-over, led the market to close down by 54 points or 0.11 percent at 49,007 level.

“Institutional support in blue chip banking, fertilizer and cement stocks supported the index to close above session lows. Consolidation, post major earning announcements at PSX played a catalyst role in the bearish close in the futures contracts rollover week”, said Ahsan Mehanti.

Trading activity was focused in mid and small-cap speculative plays while index names generated limited interest as institutional investors remained highly selective. On the leader board, Bank Alfalah 5% contributed most to losses with stocks hitting a lower price limit as the bank completely skipped any dividends, disappointing investors. Nishat Chunnian also closed at a lower price limit on a no dividend announcement, said analysts at Elixir Securities.

Notably, Sui Northern Gas Pipeline hit second consecutive upper lock with locals reportedly increasing holdings on the company’s future outlook given recently announcing expansion plans of a second gas pipeline. Meanwhile, Pakistan Oilfields closed in the red as positive announcement of hydrocarbon discovery of about 288 barrels per day was likely countered by mid day declines in global crude.

BAFL announced 2016 EPS of Rs 4.95 per share but stock closed at its lower limit of 5 percent mainly due to absence of cash dividend.

INDU announced more than expected results of Rs 77.3 per share in 1HFY17 along with Rs 25 cash dividend. Stock price gained 0.6 percent. ASL announced 1HFY17 EPS of Rs 0.74 per share. Rumors of rights shares to be issued by the company led the stock to fall by 4.7 percent.

Overall, volumes increased by 3.3 percent to 275 million shares, while value rose by 8.4 percent Rs14.1 billion/$134 million.

Market players expect institutional flows both local and foreign to primarily guide market direction next week, while activity will likely pick up going forward with the end of futures rollover week.