Daily Times

KARACHI: Pakistan equities closed Monday slightly lower in listless trading as pressures from possible categorisation of Pakistan in global terrorist watch list by Financial Action Task Force (FATF) kept overall sentiments low.

Most investors stuck to the sidelines as market started on a positive note making an intraday high of 318 points versus a low of 115 points, with benchmark KSE100 Index finally closed at 43,573 levels, down 0.12 percent day-on-day (DoD).

On the political front, global anti-money-laundering watchdog Financial Action Task Force (FATF) begins to review proposals that include putting Pakistan back on a list of countries which have failed to prevent terrorist financing. Turnover seen today recorded the second lowest level in 2018 as only $ 30 million worth of shares exchanged hands on benchmark KSE100 Index.

Barring pharma’s and oil marketing companies (OMCs), all key sectors traded and closed the day lower with Pakistan Petroleum (PPL) PA losing 0.9 percent dented KSE-100 Index the most.

Earnings announced by Amreli Steels (ASTL) pushed the value up by 2.7 percent and Hub Power (HUBC) gained 0.74 percent over positive earnings announcement.

Traded volumes plunged by 15 percent DoD to 127 million shares, while value traded decreased to $ 46 million. Top volume stocks were FFL (+5%), TRG (-2.94%), MFL (+3.19%), DFML (+3.49%) and DCL (-2.85).

Investor’s interest was seen in FFL after company’s notice that stated the Supreme Court of Pakistan has allowed FFL to resume production after FFL’s samples have been cleared by PCSIR. Moreover, mixed sentiments were seen in the Pharma sector on the back of news of Law Division advising the government to put on hold a notification about revision in prices of life-saving drugs; as pharmaceutical companies have filed several cases in courts in relation to the medicine rates. Where ABOT (-1.79%) and FEROZ (-3.17%) closed in the red, SEARL (+2.43%) closed in the green as the company has entered into a joint venture with Belgian company Belourthe.

From the banking sector, UBL (-0.59%), MCB (-0.28%) and NBP (-0.42%) closed in the red. UBL announced its 2017 result today posting consolidated EPS of Rs21.39, down 4% YoY and final cash dividend of Rs4/share, taking 2017 DPS to Rs13. Cement sector led the decline as MLCF (-0.99%), FCCL (-3.17%) and DGKC (-0.96%) closed in red zone. FCCL announced its 1HFY18 today posting an EPS Rs0.92 with no cash payout. JS Research’s analyst expects market to remain volatile and dull with flows from the local institutions and foreigners directing the market.

Published in Daily Times, February  20th  2018.