Pakistan Market Wrap; small caps riding the wave – Elixir and MMSPL Research
By: Muhammad Raza Rawjani,
Elixir Securities Pakistan (Pvt.) Ltd.
Equities continue to trade higher as investors are now finding value in second and third tier companies that are reporting exceptional results but still trade at below market multiples. Blue chip companies, on the other hand, disappointed again on results as index heavy Oil and Gas Development Co. OGDC PA -0.5% reported below consensus quarterly earnings of PKR 6.15/share while earnings of PKR3.57/share for Nishat Mills NML PA +1% too were below expectations. Moreover, with minimal institutional activity in the market, volumes and momentum is likely to driven by small caps, second and third tier stocks.
We continue to be cautiously optimistic on equities with any weakness being an opportunity to accumulate. That said, with elections due in less than three weeks, political situation may cause the market to be volatile.
By: Sania Zulfiqar,
M. M. Securities (Pvt.) Limited
Bulls took over market today as KSE100 index made high of 18,928.87 and closed at 18885.60 points which was +105.94 points from its opening. The participation in market was reasonable with total volume of 130 million with volume leader being MLCF. Highest increase in prices were noticed in Nestle, UPFL, RMPL and highest price reduction was seen in COLG, SIEM, CPL. The HUBCO and NML result’s were the awaited once which gave positive boost to market. However Engro’s base plant whose production was to come online today couldn’t make it due to technical issues. We expect tomorrow bulls may lead the market to new highs as KSE 100 index may touch a new high of 19,000 points soon.