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Top 5 news affecting the Pakistan stock market this week

On Friday, the Pakistan stock market remained muted in the first session but the rally ended at record 49,210 points.The top five gainers at KSE-100 were Sanofi-Aventis, Pak Tobacco, Ghandara Ind, Sapphire Fiber, and Hinopak Motor.

What is the top five news for the next week? Let’s discuss:

Should investors hold their positions in SNGPL?

Sui Northern Gas Pipe Line has performed well in this winter. The gas provision has massively improved as customers didn’t complain much about the gas pressure.  Moreover, SNGPL has announced a net profit of Rs 1.4 billion for the quarter ended September 30.  In the same period last year, the company showed loss of Rs 548 million.

Is it the time to invest in SNGPL? The answer is yes! The profit figures tell the complete story as SNGPL share prices increased by 301.20% in last year. The analysts are forecasting, the company will outperform the market and shareholders should hold their position.

Good news for the fertilizer sector

Later in the week, the government withdraws cash subsidy on fertilizer sale. This news created uncertainty in the mind of investors. The question was, will this decision impact the profitability of the fertilizer companies? Investors got a sign of relief when Prime Minister restored the subsidy on the fertilizer sale. The total cash subsidy is Rs 28 billion. The federal and the provincial government will equally share the amount.

The fertilizer sector has performed well in the last year and analyst is predicting same in 2017. So, investors should hold their positions in some major fertilizer companies like Fauji Fertilizer and Fatima Fertilizer.

Investment companies to maintain 5% assets in cash

The security and the exchange commission of Pakistan with the consultation of Mutual Funds Association of Pakistan have proposed new measures. All the asset management companies are advised to improve their cash assets by 5%. The companies will ensure this compliance by February 15, 2017.

What will be the impact on the shareholders?  JS Investment, Trust Investment, and MCB-Arif Habib are some of the major companies listed at the Pakistan Stock market. This decision will give protection to the shareholder in case the companies get insolvent.  So, investors should hold their position in mutual funds to earn safe investment.

Prime Minister Nawaz Sharif announced the Export package

PM Nawaz Sharif announced the much-awaited export package. This “export-led growth” package is Rs 180 million to enhance the country’s export for the next five years. This package will support the five major export sector of Pakistan that includes textile, leather, sports goods, carpet ,and surgical instruments.

What will be the impact? PM Nawaz sharif government has a reputation of business-friendly policies. This is once again proved by export package. This step will reward the value added industry and will boost the company’s profitability. Ultimately, the shareholders will get more profit.

Petrol and Diesel prices started to pop-up in Pakistan

Oil prices started to get stable in the international market.  The impact is starting to show in the Pakistan oil market as well.  According to the recent news, the petrol and the diesel prices are up by Rs 2 liter. This is the second time government has changed the prices on the fortnightly basis.  However, the prices of the Kerosene oil and the Light Diesel oil are unchanged.

It’s good time to invest in Pakistan state oil, Shell, and Attock refinery.

About Emaad Qureshi