Market Daily: A glimmer of hope for investors at PSX, up 261.42 points

LAHORE: Driven by Thursday’s inertia, the KSE 100 index was off to a weak start at open and after falling to fresh lows the benchmark index found support just shy of lows seen in December last year at 37,768 points from December 19, 2017). One possible reason can be an oversold market adjusting to news flow, particularly the one related to media reports regarding the commencement of construction of dams (Mohmand and Diamer Bhasa) from 1QCY19 and 2QCY19.

The day ended with the KSE100 recouping intraday losses and closing in green – up 261.42 points (+0.68 per cent) at 38,562.05. Market activity declined on day on day basis, with volumes down 24.8 per cent and traded value down 23.5 per cent, as nervous investors opted to refrain from increased exposure in risky assets.

Materials continue to dominate market activity, 49.71 per cent of total turnover, amid renewed appetite for LUCK, 10.35 per cent of total turnover, and DGKC, 8.67 per cent of total turnover, on the back of positive news flow. Energy at 16.68 per cent of total turnover secured the runners-up slot amid heavy participation in OGDC at 7.18 per cent of total turnover.

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The KSE 100 index managed to recover 782 points (2.07 per cent) from its intraday low driven by recovery in Materials (+2.34 per cent), Health Care (+1.33 per cent), Consumer Discretionary (+1.25 per cent), Industrials (+0.88 per cent) and Financials (+0.56 per cent), thanks to MCB (+0.79 per cent), HMB (+2.50 per cent), TRG (+3.05 per cent), NML (+2.24 per cent), HCAR (+4.01 per cent), PSMC (+4.32 per cent), SEARL (+2.68 per cent), LUCK (+4.46 per cent), ENGRO (+2.25 per cent), FFC (+2.90 per cent), DGKC (+4.96 per cent), EFERT (+1.57 per cent), FCCL (+3.05 per cent) and MLCF (+4.12 per cent) for staging a buoyant close.

For the outgoing week, the KSE 100 index lost -1,933.98 points (-5.02 per cent) with the main contribution to downside coming from PSO (-12.47 per cent), ENGRO (-5.37 per cent) and OGDC (-4.91 per cent) taking away 329 points. Amid related news, Minister for Petroleum and Natural Resources has said that Pakistan would extend all kind of assistance for early completion of TAPI project.

Market participation for the KSE 100 index increased to 91.39 million shares from 121.44 million in the previous session (-24.75 per cent on d/d basis). The major contribution to total market volume came from KEL (+6.76 per cent), PAEL (-0.36 per cent) and LOTCHEM (+0.16 per cent) churning 33 million shares out of the All Share volume of 128 million shares.

Daily traded value for the KSE 100 index decreased to $41.62 million from $54.37 million in the previous session (-23.45 per cent on d/d basis); LUCK ($4.25 million), DGKC ($3.56 million) and ENGRO ($3.54 million) were among top contributors from traded value perspective. The major contribution to the KSE 100 index upside came from LUCK (+4.46 per cent), ENGRO (+2.25 per cent), FFC (+2.90 per cent), KEL (+6.76 per cent) and DGKC (+4.96 per cent) adding 175 points. On the flip side, PPL (-2.47 per cent), OGDC (-2.25 per cent), POL (-1.89 per cent) take away 117 points. The KSE 100 index is 6.3 per cent above its 52-week low of 36,274.25 reached on October 15, 2018, and 18 per cent below its 52-week high of 47,144.12 reached on April 6, 2018.

Technically speaking, the KSE 100 index staged a recovery in Friday’s session but failed to move past 200WEMA (38,976). For now, immediate support is 37,760 and 36,275.

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