Lahore - Clouds of negative sentiments and skepticism loomed over the bourse this week as investors set their eyes on the outcome of Panama case.

The index lost 782 points to close on a WoW basis. Overall activity also remained thin with both average traded volume and value declining by 22 percent and 0.5 percent WoW, respectively.

Habib Bank Ltd's (HBL) traded volume witnessed a 10-year high of 15.6 million shares on the last trading session of the week, on the back of addition to the Global Equity Index Series Asia Pacific of FTSE. The foreign investors also continued to sell during the week with net selling of $11 million.

Across the board selling was observed in almost all major heavyweights such as banks (-2.4% WoW), OMCs (-1.7% WoW), E&Ps (-4.7% WoW), power generation (-1.2% WoW) etc.

Apart from that, other key highlights of the week were release of FDI numbers (+6% YoY to $1.3 billion during 8MFY17), receipt of CSF inflows ($200 million), T-Bills auction fetching Rs284 billion for the government, Hub Power Company Limited (HUBC) looking to divest 40% stake in Thar Energy Limited (TEL) by bringing in strategic partners, Fauji Fertilizer Company Limited (FFC) and China Machinery Engineering Corporation (CMEC) with 30% and 10% equity stakes, respectively and beginning of 6th population census.

Experts said that interest was seen in blue-chip names likely due to rebalancing of FTSE index from Monday. HBL witnessed record turnover of 15.8 million shares or $42.6 million, contributing 28 percent to total traded value. The last time over 15 million shares of HBL were traded was back in August 2007.

The outgoing week saw KSE-100 shed 782 points/1.7% WoW, major drags on the index were PPL (-7% WoW), OGDC (-4.8%),  UBL (-3.3%), MCB (-4.9%) & FFC (-2.6%), with combined negative contribution of 370points.

Oil stocks declined as crude oil price touched a low of $47.09/bbl, while banks declined due to markets concerns over inflation outlook & flattish profitability. On the sector front, capitalization of E&P’s declined 4.7% WoW, while banks & fertilizers declined 2.4-2.1%.

Foreigners were the net sellers of $11.1 million during the week as against buying of $15.4 million during the previous week. Major buying was seen in Power ($2.9 million) & E&P’s ($1.4 million) whereas selling was seen in cements ($14.6 million).

FTSE, in its semi-annual review earlier this month, included Habib Bank (HBL), Mari Petroleum (MARI), Searle Pakistan (SEARL), Engro Fertilizers (EFERT), Fauji Cement (FCCL) and Nishat Mills (NML) into its Global Equity Index Series Asia Pacific excluding Japan.

“The changes will be effective after the close of business on Friday, March 17, 2017 (i e on Monday, March 20, 2017),” FTSE Russell reported.

GE will supply two units of supercritical steam turbines, boilers and generators for Hub Power’s (HUBC) 1,320MW coal power plant JV with China Power International Holdings Limited.

The power plant’s construction has started and a groundbreaking ceremony is expected on Tuesday, March 21, 2017. The facility is expected to enter commercial operations in 2019.

Ministry of Finance approved payment of Rs6 billion to PSO as an urgent case to avoid international default next week against fuel supplies.

Simultaneously, Ministry of Petroleum and Natural Resources and the oil industry decided to put on hold future fuel oil import orders until the Ministry of Water & Power submits firm plan for payment & drawdown of record stockpile.

Large Scale Manufacturing grew by 3.5% during July-Jan’17, major outperformance was witnessed in steel (+17.5% YoY) & electronics (+13.5%), while textile (+0.3%) lagged behind.

During January 2017, LSM grew by 1.1% YoY with growth in steel (+28%), automobiles (+8.2%) & electronics (7.8%) standing out while textile (+1.2%) continued to lag.

Importer’s case against anti-dumping duties on steel, tiles & paper has been adjourned till the next hearing, while no relief will be given to importers in the interim.