Lahore -  Positivity prevailed throughout the week but profit taking at high levels kept overall performance in check.

As a result, the index inched up by a nominal 0.6 percent WoW to close at 41,464 points. In the mainstream sectors, interest remained alive in autos (+3.3 percent WoW on increasingly positive sales outlook), banks (+0.9 percent WoW, led mainly by small banks such as BOP, AKBL and FABL), oil & gas (led by strong OMCs numbers and uptick in international crude oil prices), whereas cements (-0.5 percent WoW), gas utilities (-4.3 percent WoW) and telecom (-1.9 percent WoW) witnessed profit taking.

Overall activity also tumbled during the week as average traded value and volume clocked in at $132 million (-19 percent WoW) and 404 million shares/day (-33 percent WoW), respectively.

Other important highlights of the week were IMF's call for Pak Rupee’s  devaluation against the US Dollar to keep exports competitive, new deadline set by the government for the privatisation of PIA and PSM, fall in workers’ remittances (-9.3 percent YoY in Sept-16), decline in auto sales numbers (-13 percent YoY in Sept-16) and OGRA's rebuttal in response to rumours of gas price hike for gas utilities.

According to the experts, the benchmark KSE-100 Index witnessed a positive start, closing at an index level of 41,404 on October 10. Positive movement in the index was witnessed predominantly by investor interest in autos, banks and oil & gas exploration companies.

The Benchmark KSE-100 Index touched another all time high, to close at 41,464 level, up 264 points (0.6 percent) WoW.

Average daily volumes for the outgoing week declined 33 percent WoW to 404 million shares while average daily value decreased by 19 percent WoW to Rs14 billion/$132 million during the week.

The automobile assembler was the top gainer over the week, up 3 percent, followed by oil & gas exploration companies and banks, which increased 1 percent. Cement and Fertiliser sectors were down 1 percent over the outgoing week.

Foreigners were net buyers of $2.2 million during the week. Banks and Electricity sectors saw net buying of $3.3 million and $3.2 million, respectively, whereas oil & gas exploration and cement sectors saw net selling of $2.9 million and $2.5 million, respectively.

During the week, the central government’s total debt increased 11.2 percent YoY to Rs19.5 trillion at the end of August, from Rs17.5 trillion in the same month last fiscal year.

Figures from the central bank showed on Thursday that the government’s debt was at Rs19.2 trillion in July 2016.

As per the data released by Pakistan Bureau of Statistics (PBS), trade deficit increased by 33 percent YoY to $2.3 billion in September 2016.

Imports climbed by 11 percent YoY to $3.9 billion. On the contrary, exports were down 11 percent YoY to $1.5 billion during the period under review.

Oil and Gas Development Company (OGDC) has broken its own crude production record by churning out 48,767 bpd in the current month. Earlier, the company had hit the peak at 46,000 bpd in 2008, but the output started falling with the passage of time.

According to the fortnightly report of Pakistan Cotton Ginners Association (PCGA), Punjab has shown 40.8 percent less production of cotton this year.

Seed cotton (Phutti) equivalent to over 2.65 million bales of cotton had reached ginneries across the country as of Sep 30, 2016, showing a decrease of 13.9 percent YoY.

As per the annual Global Competitiveness report of the World Economic Forum, Pakistan has witnessed improvement by four notches from 126th to 122nd position in the corruption perception index 2016-17 as compared to the previous year.

During the week, Pakistan Telecommunication Company (PTC) announced 3Q2016 consolidated profit after tax of Rs876 million (EPS Rs0.17) as compared to a loss of Rs0.07/share for 3Q2015. The result was in-line with expectations.

PTC’s consolidated revenues improved by 2 percent YoY to Rs29.8 billion in the outgoing quarter. This can be attributed to improving Ufone’s revenue, PTC’s wholly owned subsidiary.

However, PTC’s core business segments remained flat. As of August 2016, Evolution Data Optimized (EvDO) subscribers fell 5 percent YoY to 1.03 million while those of Digital Subscriber Line (DSL) remained almost flat at 1.4 million subscribers.

Moreover, Fixed Line and Wireless Local Loop (WLL) segments have also been kept in check and we believe this is due to the proliferation of Mobile Broadband.

Company’s consolidated top-line performance was supported by Ufone whose revenues increased 13 percent YoY to Rs11.7 billion in 3Q2016.

It is reminded here that Ufone has been underperforming than other Cellular Mobile Operators (CMO) in terms of subscriber base.

It, currently, has 15 percent market share and has been losing subscribers to Telenor, which recently acquired 4G licence.