Pakistan Weekly January 12, 2018 REP‐057 Topline Market Review Gains erode as profit taking ensues KSE‐100 Index +1.0 % WoW; Weekly net FIPI US$26mn Topline Research Best Local Brokerage House [email protected] Brokers Poll 2011-14, 2016-17 Tel: +9221‐35303330, Ext: 133 Topline Securities, Pakistan www.jamapunji.pk Best Local Brokerage House 2015-16 Index gains 1% in outgoing week as profit taking ensues Market Weekly Data KSE Volume & Value KSE‐100 Index 42,933.72 (Shares mn) Volume Value (US$mn) 330 150 1‐Week Change (%) 1.0% 260 Market Cap (Rs tn) 8.9 106 190 1‐Week Change (%) 0.2% 63 Market Cap (US$ bn) 80.6 120 1‐Week Change (%) 0.2% 50 20 18 18 18 18 18 ‐ ‐ 1‐Week Avg. Daily Vol (shares mn) 276.4 ‐ ‐ ‐ n n n n n aa aa aa aa aa J J J J J ‐ ‐ 1‐Week Avg. Daily Value (Rs bn) 12.2 ‐ ‐ ‐ 9 8 1‐Week Avg. Daily Value (US$ mn) 110.2 10 11 12 Source: PSX Source: PSX Outgoing week saw the culmination of the Santa Clause rally which commenced on December 20, 2017 and peaked on Jan 10, 2018 with a net gain of 14%. Since then index has had red two sessions correcting 2%/697pts, which has trimmed weekly gains to 1%/410pts with the index closing the week at 42,934pts level. Going forward, equities maybe further pressured as agitation movement by opposition parties begin on Jan 17 to protest against the Model Town. PtiitiParticipation idimproved siifitlignificantlyasprofitswerebkdbooked, average volumes idincreased 30% WWWoW whilevalue rose 44%. Stocks including HBL (+0.7%), COLG (+5%), POL (+0.7%), PIBTL (+1.8%) and FFC (+0.3%) added 53pts to the index, while PSO (‐3.9%), DGKC (‐4.9%), OGDC (‐1.4%), ENGRO (‐1.7%) and UBL (‐1.1%) withheld 159 points. On the sector front; Cements and Oil & Gas Marketing sector cumulatively withheld 136 points whereas Chemical sector added 17points. Foreigners bought US$26mn worth of shares during the week vs. buying of US$23mn during the last week. On the local front, Individuals were net buyers of US$11mn whereas Banks were net sellers of US$18.5mn. ToplineHonda AtlasMarket Cars Review (HCAR) 2 Important News, Views & Corporate Announcements Chie f of Army SffStaff GlGeneral Qamar JdJaved BjBajwa receidived two phone calls from US Centcom CdCommander GlGeneral JhJoseph Votel and one from a US senator over the week to discuss Pak‐US security cooperation following President Donald Trump’s tweet, the Inter Services Public Relations (ISPR) said on Friday. The army chief told the US officials that Pakistan will continue its "sincere counter‐terrorism efforts" even without US financial support in accordance with its own national interest and will remain committed to bringing the effort to its logical conclusion along with other stakeholders. The National Assembly on Friday unanimously passed a bill extending the jurisdiction of the Supreme Court of Pakistan and Peshawar High Court (PHC) to the Federally Administered Tribal Areas (FATA). U Micro finance BkBank,whllhollyowned subidibsidiary of PkiPakistan TlTelecommun icat ion Company (PTC), has acquidired addit iona l Capital Injection of Rs1bn as Tier 1 from its sponsors, a press statement said. It said that this new injection will enable the Bank to further capitalize on the growth opportunities available in Pakistani microfinance sector. Given the overall economic landscape, competitive environment and the opportunit y to serve a considerably large underserved population, this capital injection will provide the necessary growth impetus for the Bank to leverage on. Tariq Glass (TGL) in its notice sent to PSX stated that the construction of the new state of the art Opal Glass Dinnerware Project with a capacity of 35 tons per day, has been completed. It is currently holding the inauguration ceremony for the fir ing /lig hting up of the furnace of thisnewstttateof theart pltlant for manuftifacturing of OlOpal Glass Dinnerware. According to a notice sent by HBL Asset Management to PSX, the certificate holders of PGF (PICIC Growth fund) have approved the conversion of PGF from a closed end fund to an open end scheme. Former finance minister Hafeez Pasha says after the US invasion of Afghanistan in 2001, aid increased substantially, approaching $3‐4 billion annually at its peak in 2010. "From there onwards, it´s been declining very sharply. Last year, it was around $750 million," he said, a figure that when compared with the economy "is not a lot". ToplineHonda AtlasMarket Cars Review (HCAR) 3 KSE-100 Index KSE Market Capitalization 43,631 (US$bn) 44,000 43,395 43,112 82.00 81.82 42,814 42,934 43,000 81.45 81.50 81.25 42, 000 81.00 80.69 80.56 41,000 80.50 40,000 80.00 -18 -18 -18 -18 -18 -18 -18 -18 -18 -18 nn nn nn nn nn nn nn nn nn nn 8-Ja 9-Ja 8-Ja 9-Ja 10-Ja 11-Ja 12-Ja 10-Ja 11-Ja 12-Ja Source: PSX Source: PSX Market Cap . SectoSector-wise R eturn: T op 5 Gaine r / Lose r of th e w eek All Sha re In dex: T op 5 Gaine r / Lose r of th e w eek 15% Unadjusted prices 11% 60% 53% 52% 45% 10% 6% 40% 5% 4% 4% 35% 5% 30% 0% -5% -2% -2% -3% -4% -4% 0% -20% -16% -18% -18% -20% Telecom -30% Woollen Tobacco Transport obile Parts utual Fund L L T T ngineering M M Modarabas LL & Gas Exp. FL LF BL & Ceramics & CC VV CC RR ll mm MM EE TT TT SS S BI Oi ES DS FR JA RA SE KS Auto Glass Source: PSX Source: PSX ToplineHonda AtlasMarket Cars Review (HCAR) 4 Top 10 Average Volume Leaders Top 10 KSE-100 Index Points Contributors 136 140 25.0 110 20.2 86 20.0 18.3 90 53 15. 0 37 12. 7 12. 1 11.7 40 10.0 -10 5.0 -60 -31 -32 -37 -38 -41 - P B P C C C G LE PL BL BB FF KK CC GG DD LL LL LL RR CC GG P F H N T M SN AN DG OG WT TR PAE SSG NEST Source: PSX Source: PSX Foreign: G.Buy, G.Sell & Net Sector‐wise During the Week (28‐30th) Foreign: Buying, Selling & Net During the Week (US$mn) Gross Buy Gross Sell Net Gross Buy Gross Sell Net Oil and Gas Exploration Companies 5.4 (3.8) 1.6 8‐Jan‐18 20.1 (8.7) 11.4 Fertilizer 4.6 (4.2) 0.4 9‐Jan‐18 13.4 (6.6) 6.9 Cement 10.5 (4.7) 5.8 Food and Personal Care Products 0.5 (()0.4) 0.1 10‐Jan‐18 15.0 (14.6) 0.4 Textile Composite 4.8 (3.9) 0.9 11‐Jan‐18 14.3 (14.0) 0.3 Technology and Communication 3.9 (3.0) 0.9 12‐Jan‐18 18.9 (11.4) 7.5 Power Generation and Distribution 4.4 (0.7) 3.7 Commercial Banks 27.5 (20.1) 7.4 Weekly 81.7 (55.3) 26.4 Oil and Gas Marketing Companies 585.8 (2. 8) 303.0 MthMonth to DtDate 139.7 (90. 3) 49. 4 All other Sectors 14.3 (11.6) 2.7 Total 81.7 (55.3) 26.4 Year to Date 139.7 (90.3) 49.4 Source: NCCPL Source: NCCPL ToplineHonda AtlasMarket Cars Review (HCAR) 5 LlLocal BkBanks: GBG.Buy, GSG.Se ll& NtNet StSector‐wise DiDuring the WkWeek LlLocal BkBanks: GBG.Buy, GSG.Se ll& NtNet DiDuring the WkWeek (US$mn) Gross Buy Gross Sell Net (US$ mn) Gross Buy Gross Sell Net Cement 2.4 (4.5) (2.1) 8‐Jan‐18 1.8 (13.4) (11.6) Fertilizer 3.7 (6.8) (3.1) 9‐Jan‐18 2.5 (5.3) (2.8) Food 0.0 (0.1) (0.1) Oil and Gas Expl. 6.2 (12.5) (6.3) 10‐Jan‐18 4.1 ()(13.5) ()(9.4) Oil and Gas Mark. 0.7 (2.4) (1.7) 11‐Jan‐18 8.3 (4.2) 4.1 Power 0.4 (0.5) (0.1) 12‐Jan‐18 2.9 (1.6) 1.3 Banks 0.8 (2.1) (1.4) Telecom 0.5 (1.4) (1.0) Weekly 19.5 (38.0) (18.5) Textile 0.4 (1.9) (1.5) Month to Date 32.8 (53.7) (21.0) Other Sectors 4.5 (5.8) (1.2) Total 19.5 (38.0) (18.5) Year to Date 32.8 (53.7) (21.0) Source: NCCPL Source: NCCPL Local Funds: GBuyG.Buy, GSellG.Sell & Net Sector‐wise During the Week Local Mutual Funds: GBuyG.Buy, GSellG.Sell & Net During the Week (US$mn) Gross Buy Gross Sell Net (US$ mn) Gross Buy Gross Sell Net Cement 4.1 (7.2) (3.0) 8‐Jan‐18 11.8 (6.7) 5.1 Fertilizer 4.9 (3.5) 1.3 9‐Jan‐18 4.7 (7.1) (2.5) Food 0.0 (0.1) (0.1) Oil and Gas Expl. 818.1 (5. 6) 252.5 10‐Jan‐18 10. 9 (7. 9) 303.0 Oil and Gas Mark. 3.3 (3.2) 0.1 11‐Jan‐18 5.4 (14.4) (9.0) Power 2.0 (1.6) 0.4 Banks 7.6 (7.5) 0.2 12‐Jan‐18 8.0 (8.0) 0.0 Telecom 1.5 (0.7) 0.8 Weekly 40.8 (44.1) (3.3) Textile 151.5 (2.