Pakistan Weekly Momentum sustains on strong result announcements The benchmark index gained 278 points (+0.9% WoW) during the week in anticipation of lower inflation, expected to be announced next week, coupled with strong result announcements for Sep-14 quarter. UBL, KAPCO and LUCK remained the key contributors to index gains during the week contributing +86, +48 and +44 points respectively. OGDC limited index increase and dragged KSE-100 by 84 points owing to continued falling oil prices and anticipation of secondary offer by the Govt. of Pakistan via domestic and international offering at discount. Average daily trading volumes posted recovery increasing by 11% WoW to 103mn shares. Foreigner remained net sellers during the week, selling net USD7.84mn worth of shares. However, on the last trading session of the week, foreigners turned buyers after being consecutive sellers for last five sessions. Key news this week Invest Pakistan conference: Govt seeks USD20bn to uplift power sector Gas-pricing: ECC to approve revised formula for Mari Gas Government likely to cut POL price by up to PKR14/litre Power transmission lines: Blanket tax exemptions on investments for 10 years This weeks top stories HBL: Strong CY14 growth to precede slower CY15: Earnings growth of HBL is expected to slow down to 12% in CY15. Slower growth is expected to emanate from i) weak NIMs, ii) Sluggish improvement in components of CASA and iii) weakening asset quality. OMCs: Estimates raised on margin revision: As per our channel checks, margins of oil marketing companies have been raised by PKR0.12/litre and PKR0.49/litre on Motor gasoline (MS) and High Speed Diesel (HSD) respectively following approval by ECC during its October 30th meeting. Future outlook Market participants would likely track CPI inflation scheduled to be announced on November 05, 2014 while participation in book building of OGDC would also guide market direction.
Posted on: Sat, 01 Nov 2014 15:53:03 +0000
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