LAHORE -  Overall sentiments remained mixed at the bourse with market struggling to break 42,000 level. As a result, the index ended down 0.4 percent WoW to close at 41,291points.

In the mainstream sectors, most of the interest remained tilted towards OMCs (+2.6 percent WoW on account of better than expected 1QFY17 result announcements), textiles (+3.4 percent WoW on rumours of favourable exports package), E&Ps +1.1 percent (on rebounding international oil prices). On the other hand, sectors such as cements (-4.4 percent WoW), and fertilisers (-1.3 percent WoW) witnessed profit taking.

Improvement in activity was observed as both average traded value and volume improved by 6 percent and 17 percent, respectively during the week.

Most of this increase in activity can be attributed to local AMCs where reported injection by a major pension fund promoted broad based buying in the market.

Other important highlights of the week were release of external account numbers (C/A deficit up 136 percent YoY to $1.37 billion in 1QFY17), receipt of $1 billion Sukuk issue, rejection of all bids in PIBs auction, possible decrease in power project capacity notified by Hubco (HUBC), extension of tax holiday for shipping industry announced by the government and Rs180 billion package expected for export sector.

According to experts, the benchmark KSE-100 Index witnessed volatility throughout the outgoing week, with the exception of a positive trading session on October 20. Negative movement in the index overshadowed any positive triggers, which was mainly on the back of rising political noise, increase in international coal prices, affecting cement stocks and profit taking due to the upcoming roll-over week. The Benchmark KSE-100 Index today, closed at 41,291 level, down 173 points (0.4 percent) WoW.  Average daily volumes for the outgoing week rose 17 percent WoW to 471 million shares while average daily value rose by 6 percent WoW to Rs15 billion/ $140 million during the week.

Food & personal care was the top gainer over the week, up 2.2 percent, followed by oil & gas exploration and banks, which increased 1.1 percent.

Cement and Fertilizer sectors were down 4.4 percent and 1.3 percent, over the outgoing week, respectively.

Foreigners were net sellers of $8.5 million during the week. Cement and Chemical sectors saw net selling of $5.9 million and $2.5 million, respectively, whereas the banking sector saw net buying of $0.9 million.

The week also witnessed the start of 1QFY17/3QCY16 result season with Attock Group and the banking sector amongst the major results announced during the week.

Also possible announcement of another textile package in near future, uncertainty surrounding applicability of Petroleum Policy 2012, surge in coal prices and expected ground breaking of north-south gas pipeline were among other key developments during the week. Key economic data revealed during the week was 74 percent MoM contraction in current account deficit during Sep 2016 primarily due to 17 percent MoM contraction in import bill of the country.

At the same time, issuance of $1.0b Sukuk and 189 percent MoM uptick in FDI during Sep 2016 further strengthened the forex reserves and outlook on rupee/dollar parity.

During the week, Abbott Laboratories (ABOT) announced its 3Q2016 financial results, reporting profit of Rs1.1 billion (EPS Rs11.7), as compared to earnings of Rs940 million (EPS Rs9.6) in the same period last year.

Net revenues were up 6.4 percent YoY, to Rs5.8bn. Gross profit margins for the company rose 1.7ppts to 41 percent during the outgoing quarter. Selling and administration expenses were up 21 percent to Rs1.5bn. 

Soneri Bank (SNBL) announced its 3Q2016 earnings of Rs366mn (EPS Rs0.33), down 24 percent YoY. Net interest income fell 23 percent YoY, to Rs1.5bn mainly on back of maturity of major PIBs. Non-interest income for the company clocked in at Rs2.2bn, down 3 percent YoY, due to lower capital gains and income from dealing in foreign currencies.

Sanofi-Aventis Pakistan (SAPL) announced its 3Q2016 earnings of Rs364mn (EPS Rs37.8), as compared to loss of Rs9.7mn (LPS Rs1). Revenues rose 28.6 percent YoY, to Rs3.7bn, gross profit margins improved by 9ppts YoY, to 33.6 percent. National Foods (NATF) announced its 1QFY17 earnings of Rs318mn (EPS Rs3.1), as compared to earnings of Rs310mn (EPS Rs3). Revenues rose 6.8 percent YoY, to Rs3.7bn, gross profit margins improved by 71bpts YoY, to 36.7 percent.