Market Weekly Review; positive sentiment mainly driven by incoming corporate results – AKD Research
By: AKD Securities Limited,
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The KSE-100 Index gained 1.54%WoW to close at 18,918 points with average daily traded volumes increasing by 15.5%WoW to 189mn shares. Although law & order conditions in Karachi took a turn for the worse, the overall positive market sentiment was mainly driven by incoming corporate results with blue-chips companies by and large posting strong results. Key news flow this week included i) the economic team’s meeting with the IMF with a possible Extended Fund Facility of up to US$5bn in the next government’s term and ii) the caretaker PM’s guidelines to the MoF for preparation of the FY14 Budget, with a focus on austerity. Within the AKD Universe, top gainers during this week included PSMC (+12.3%WoW on a better than expected 1QCY13 result), DAWH (+7.6%WoW due to strong performance of portfolio companies), AICL (+6.7%WoW), PSO (+6.6%WoW) and FATIMA (+5.3%WoW). Main laggards during the week were led by EPCL (-3.9%WoW), AGTL (-3.4%WoW), MEBL (-2.8%WoW), MTL (-2.1%WoW) and EFOODS (-1.6%WoW). Volumes were led by MLCF (74.23mn shares), TRG (65.1mn shares), ENGRO (52.31mn shares), NBP (41.53mn shares) and PTC (38.84mn shares).
With corporate results leading market sentiment, we expect investors to keep a close watch on incoming results where some key announcements due next week include Cements (LUCK/FCCL), Fertilizers (ENGRO/FFC) and Banks (MCB/NBP). That said, with general elections around the corner, any deterioration in law & order, particularly in Karachi, may lead to Index volatility.