Zubair Yaqoob
Karachi
Market had an interesting session on Wednesday, which saw OGDC going lower circuit and then bouncing back strongly to close at day’s rate and above market average. Similar activity was observed in PPL, which although didn’t touch lower circuit, but faced likewise selling pressure. The news that concerned investors was likely selection of Financial Advisors for divestment of OGDC’s shares amidst expectation that Shares will be offered at a discount to market price. By the end of session, Secretary Privatization Commission, Rizwan Malik clarified that Govt. intends to divest shares at Premium that caused stock price to go up further in MoC. Capital from selling of E&P stocks apparently moved to Cement sector that also caused a spike in Cement sector stocks, especially LUCK that went close to upper circuit. E&P sector led the volumes with 23.6M shares, followed by Technology (19.5M) and Cement (19.2M). Among scrips, OGDC topped with 19.2M shares, followed by MLCF (9M) and UNITY (8.5M). The Index closed at 42,561pts as against 42,626pts showing a decline of 65pts ((-0.2% DoD). Sectors contributing to the performance include Cement (+58pts), Fertilizer (+33pts), Banks (+11pts), E&P (-71pts), O&GMCs (-36pts), Tobacco (-22pts), Inv Banks (-18pts). Volumes maintained the level at 178.0mn shares (+0% DoD).
Average traded value increased by 36% to reach US$ 60.1mn as against US$ 44.1mn.
Stocks that contributed significantly to the volumes include OGDC, MLCF, UNITY, TRG and MERIT, which formed 30% of total volumes. Stocks that contributed positively include LUCK (+42pts), FFC (+20pts), ENGRO (+18pts), MCB (+17pts) and UBL (+10pts). Stocks that contributed negatively include OGDC (-71pts), PAKT (-22pts), DAWH (-17pts), PSO (-12pts), and POL (-12pts).
