CARRYING with last-year’s momentum, the index maintained its bullish ride, galloping from the 47,800 level to close at 49,038, adding 1,231 points or 2.6% during the last week.
Stocks rode on the positive momentum and continued with the re-rating story this week. Even investors’ cautiousness over an expected technical correction did not hamper the upward march.
Continuation of the positivity surrounding the re-rating theme led the index to close yet another week at an all-time high. However, the mid-week witnessed some profit taking and cautious buying while investors keenly tracked the developments on Panama case hearings. Steady flows from both local and foreign investors were witnessed during the week, particularly in blue chips. Steel sector remained in the limelight, gaining 7%, following announcement by Dost Steel notifying commencement date of its operations as of May 2017 while Amreli Steel gained on the back of rumours of significant discounts driving healthy volumes for the company.
Cement sector surged 2% in anticipation of increase in prices in North region by Rs15-20/bag while expectation of healthy off take numbers for December attracted investors’ interest
Additionally, fertilisers garnered investors’ attention in the initial trading sessions as strong sales numbers for December built expectations of margin improvement for the fertiliser companies.
Banks (+1.9%) were another major sector that provided impetus to the index where stocks were in limelight again on expectations of earlier than expected interest rate reversal and robust advances growth in December.
Oil marketing companies posted positive returns on the back of increasing oil prices which lead to inventory gains for the sector.
Market activity picked up significantly during the week with average daily volume increasing by 43% week-on-week, primarily due to low trading activity in the previous week owing to year end.
Foreigners remained net sellers during the week; however, the quantum was much lower, offloading $2.0 million worth of shares, with selling primarily in concentrated in oils ($6.9 million). Crescent Steel & Allied Products Limited manufactures steel lined pipes and multi-layer pipe coatings, which are used for water, oil and gas transmission.
The company also has a cotton division that manufactures cotton yarn. Colgate-Palmolive Pakistan Limited manufactures and sells detergents, personal hygiene, and a variety of other products. Rafhan Maize Products Company produces corn oil, industrial starches, liquid glucose, dextrin, gluten meals and other corn-related products.
The company also produces a wide range of co-products such as gluten feeds, meals and hydrol.