ZSL, Day Wrap
As the 100 index meets the ultimate resistance at 32,800 (declining trend line originated from 36,471 connecting 34,565 and 33,304) this week, the market looks poised for a royal rumble between those who expect the recent rally to continue and those who are selling rallies. Since 19th January, the 100 index has gained 2,078 points mainly on the back of HBL, PPL, OGDC, MCB and UBL; the downtrodden stocks that became celebrities in just a fortnight. With WTI prices likely to stay volatile in the coming days we expect E&P counters to keep reflecting that sentiment going forward. Whereas banking stocks are likely to normalize their rate of gains going forward; a minor pull back in this particular case would be more appropriate.
The 100 index gained 227 points (+0.69%) today to close at 32,706.22. Market participation clocked in at 152mn shares compared to 151mn in the previous session. Major contribution to the upside came from HBL, MCB and UBL. From turnover perspective EFERT stood out amongst the rest followed by TRG, PACE, TSPL and PIAA – the same old retail favorites.
EFERT posted 4QCY15 NPAT of PkR5, 123mn (EPS: PkR3.85), up by a whopping 105%YoY/84%QoQ, taking CY15 earnings to PkR15, 027bn (EPS: PKR11.30), up 83%YoY. 4QCY15 earnings came in slightly above estimates on higher than expected DAP retention price. The company also announced final cash dividend of PkR3.00/share, taking the total payout to PkR6.00/share. Under the circumstances this is as good as it gets.
There is not much to say with regards to the direction of markets going forward, we are at a point from where the index could go in either direction. Sit back and enjoy the show!!
Mohammad Naeem Akhtar , market Analyst .
Zafar Securities Private Limited.
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