JS Securities Limited – Weekly Review

Karachi, June 14, 2018 (PPI-OT): Market back to a bearish tone, down 0.6% WoW

The market exhibited an overall bearish trend during the current week, shedding 267 points to close at 43,681 level, down 0.6% WoW. Volumes dropped by 28% WoW to 132mn shares ahead of the Eid-ul-Fitr holidays, while average value traded underwent a similar rut, plunging by 31% WoW to US$54mn. On the international front, foreign investors remained net sellers, with net outflow of US$4.3mn, lower than previous week’s net selling of US$29.4mn. The key highlight of the week was Pak Rupee devaluation against the greenback (down 3.8%) for the third time within twelve months, reaching a record low of Rs120.50 in the interbank market.

The impact of the plunge in Pak Rupee reverberated across the market. Import dependent sectors felt the heat, which included Cements (down 5.4% WoW), Automobiles (down 5.1% WoW), Refineries (down 1.7% WoW) and Pharmaceuticals (down 1.5% WoW). Key performing stocks during the week included MEBL (up 12.5% WoW), PSO (up 3.2% WoW), NML (up 3.3% WoW), ENGRO (up 3.7% WoW) and OGDC (up 2.9% WoW). National Tariff Commission (NTC) imposed definitive antidumping duties on colour coated coils in the rage of 5.36% to 14.24% against dumped import from China and South Africa. Other key highlights during the week included (1) auto sales rising by 5% YoY (INDU sales up 20% YoY), (2) three year extension notified for export package, where yarn and grey fabric have been excluded from the package, (3) POL prices increased by Rs4-6 per litre by the caretaker setup, and (4) Al Futtaim Renault acquiring land to set up plant.

LSM up 4.1% YoY in Apr-2018

Large Scale Manufacturing (LSM) data, as released by Pakistan Bureau of Statistics (PBS) showed 4.1% YoY growth for the month of Apr-2018. Growth in LSM numbers during the month was mainly due to strong consumer demand for food, beverages and tobacco boosted production of the same. Demand for automobiles was the next biggest contributor to LSM growth.

MIRKS plans Rs6.5bn investment in power and steel

Mirpurkhas Sugar Mills (MIRKS) in an official notification to the PSX announced its plan to invest Rs6.5bn in (1) a bagasse power plant of 26MW to supply electricity to the sugar mill and its other businesses, and (2) a steel rebar manufacturing plant with melting and rerolling capacity of 150-200k tons p.a.

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JS Securities Limited – Weekly Review

Karachi, June 14, 2018 (PPI-OT): Market back to a bearish tone, down 0.6% WoW

The market exhibited an overall bearish trend during the current week, shedding 267 points to close at 43,681 level, down 0.6% WoW. Volumes dropped by 28% WoW to 132mn shares ahead of the Eid-ul-Fitr holidays, while average value traded underwent a similar rut, plunging by 31% WoW to US$54mn. On the international front, foreign investors remained net sellers, with net outflow of US$4.3mn, lower than previous week’s net selling of US$29.4mn. The key highlight of the week was Pak Rupee devaluation against the greenback (down 3.8%) for the third time within twelve months, reaching a record low of Rs120.50 in the interbank market.

The impact of the plunge in Pak Rupee reverberated across the market. Import dependent sectors felt the heat, which included Cements (down 5.4% WoW), Automobiles (down 5.1% WoW), Refineries (down 1.7% WoW) and Pharmaceuticals (down 1.5% WoW). Key performing stocks during the week included MEBL (up 12.5% WoW), PSO (up 3.2% WoW), NML (up 3.3% WoW), ENGRO (up 3.7% WoW) and OGDC (up 2.9% WoW). National Tariff Commission (NTC) imposed definitive antidumping duties on colour coated coils in the rage of 5.36% to 14.24% against dumped import from China and South Africa. Other key highlights during the week included (1) auto sales rising by 5% YoY (INDU sales up 20% YoY), (2) three year extension notified for export package, where yarn and grey fabric have been excluded from the package, (3) POL prices increased by Rs4-6 per litre by the caretaker setup, and (4) Al Futtaim Renault acquiring land to set up plant.

LSM up 4.1% YoY in Apr-2018

Large Scale Manufacturing (LSM) data, as released by Pakistan Bureau of Statistics (PBS) showed 4.1% YoY growth for the month of Apr-2018. Growth in LSM numbers during the month was mainly due to strong consumer demand for food, beverages and tobacco boosted production of the same. Demand for automobiles was the next biggest contributor to LSM growth.

MIRKS plans Rs6.5bn investment in power and steel

Mirpurkhas Sugar Mills (MIRKS) in an official notification to the PSX announced its plan to invest Rs6.5bn in (1) a bagasse power plant of 26MW to supply electricity to the sugar mill and its other businesses, and (2) a steel rebar manufacturing plant with melting and rerolling capacity of 150-200k tons p.a.

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