KARACHI - Pakistan Stock Exchange (PSX) witnessed a volatile session on Tuesday with benchmark shares index making an intraday high of 190 points and an intraday low of 201 points, to finally close 24 points up at 50,144.63 level.
International oil prices slipped as Saudi Arabia and other Arab states cut diplomatic ties with Qatar. This was reflected in oil stocks, where OGDC and POL closed 1.43pc and 1.62pc down, respectively. On the other hand, cement sector maintained its positive momentum on the back of rumours of prices increase in cement bags. LUCK (gain 1.43pc), DGKC (1.57pc), MLCF (3.11pc) and FCCL (1.75pc) from the aforementioned sector made positive contributions to the index, observed analyst Arhum Ghous.
Top index point contributors were HBL (up 1.5pc), LUCK (1.4pc), BAHL (2.3pc), DGKC (1.6pc) and MLCF (3.1pc), adding 140 points; conversely OGDC (decline 1.4pc), SNGP (2.9pc), HUBC (1.1pc), POL (1.6pc) and SEARL (1.8pc), withheld 113 points. On the sector front, Cement added 86 points, followed by Banks (68 points) & Auto Assembler (32 points), while OMC shed 37points, E&P 33 points and Power 29 points. Engro Polymer (EPCL) hit its upper circuit for a consecutive session, following news report suggesting 2pc regulatory duty on PVC, observed analyst at Topline Securities.
Stocks closed higher led by selected banking, steel and cement stocks as investors weigh development budgets for Sindh, Punjab despite pressure on concerns for foreign outflows at PSX. Falling global crude prices amid Qatar diplomatic crises and weak global equities invited mid-session pressure. Strong economic growth forecast at 5.5pc for 2017-8 in the World Bank’s 2017 Global Economic Prospects Report played a catalyst role in positive close, said Ahsan Mehanti at Arif Habib Corp. Market participation thinned with volumes declining 9pc to 232 million share, while traded value fell 2pc to Rs13.5 billion/$129 million.
Book building of divestment of PSX shares
The shares of the Pakistan Stock Exchange Limited are being offered to high net-worth institutional investors and the retail investors at a floor price of Rs28 per share.
The quantum of public offering is 160 million shares. The entire issue is being offered via book building process to institutional or high net-worth individual’s investors. However, the 25pc of the offer size ie 40.074 million shares shall be offered to the retail investors at the strike price determined through the book building mechanism and any shares that remain unsubscribed by the general public shall be allocated at pro-rata, to successful investors as per the book building process.
The divestment of shares of Pakistan Stock Exchange is a historic event and provides great opportunity to investors to acquire shares of the country’s only stock exchange. This offering to the public is taking place after Chinese led consortium bought 40pc of the PSX shareholding at a price of Rs28 per share. This public offering of shares of the exchange will be second offering of securities exchange in South Asia after Bombay Stock Exchange offer shares to the public four months back which was highly oversubscribed.
The details/procedure for applying for the shares is available in the offering document published by the exchange, which can be accessed through PSX website. The registration of eligible investors has already commenced from June 1, 2017 and will close on June 7, 2017. The bidding period dates are June 6 and June 7, 2017.
