https://soundcloud.com/zafar-stocks/psx-pakistan-stock-exchange-market-behavior-24-february-2016-with-future-prediction-zafar-securities
Wednesday 24 February 2016
Zafar Stocks PSX 100 Index (Zafar Securities - PSX Pakistan Stock Exchange Broker)
ZSL, Market Recap Feb-24-2016
Extending its late session recovery off yesterday’s low the 100 index, following a brief pause in the morning session, went ballistic around 13:15 hours to eventually close up 222.10 points (+0.72%) at 30,786.60. Market participation failed to expand in line with today’s gains, highlighting dearth of market participants willing to join the bandwagon in the wake of ongoing and relentless foreign selling. Market participation slumped by 23% to clock in at 138mn shares for the day.
Bulk of today’s gains came on the back of rally in KAPCO, FFC, DGKC, POL and FFBL, meanwhile retail favorites churned significant turnover and gains mainly in names like PAELR2, TRG, PAEL, SSGC and NIB bringing back life to the usual suspects in 2nd and 3rd tier names. Although 2nd and 3rd tier names rallied today yet they have a long way to go before they catch up to their previous highs which could only happen amidst better market sentiment and improved market participation.
Technically speaking, market has bounced of its trend line support and is currently heading towards testing its next resistance at 11EMA (31,208.97).
Key announcements:
KAPCO released its 2QFY16 NPAT of PkR2.24bn (EPS: 2.53), depicting an 8%YoY decline resultantly taking 1HFY16 cumulative profits to PkR4.3bn (EPS: 4.92), slightly lower than estimates. Results were accompanied with interim payout of PkR4.25/share, slightly above consensus PkR4.0/sh.
NML announced its result for the 1HFY16 wherein the company reported earnings of PKR2.6bn (EPS: PKR7.28) compared to PKR1.9bn (EPS: PKR5.52) in the SPLY, up by 32%YoY, beating the consensus estimates.
Mohammad Naeem Akhtar, Market Analyst
Zafar Securities Private Limited.
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