Daily Times

KARACHI: Pakistan equities closed in negative on Tuesday after testing nerves mid day to recover from morning declines that pushed the benchmark KSE100 Index below 43,000 points mark.

The KSE 100 Index succumbed to pressure due to political qualms as bourse slipped down by 708 points to finally close at 43,295, down 278 points.

Early declines were led by Oil and Gas Development Company (OGDC) losing 0.2 percent as the stock, not being able to meet market expectations of a bigger payout, saw profit-taking reportedly from local institutions; stock churned volumes of over 4 million shares, most in the last four weeks.

Apart from OGDC, financials, cements and select index heavyweights contributed to declines with Habib Bank (HBL) losing 2.2 percent, Hub Power (HUBC) losing 2.2 percent, and MCB Bank losing 1.2 percent. National Bank of Pakistan (NBP) losing 2.4 percent also closed lower despite announcing better earnings, as investors were left disappointed by no payout.

Amreli Steels (ASTL) gaining 2 percent came on investors’ radar after the company notified exchange of plan to modernise its existing rolling mill for an estimated cost of Rs 2 billion that will increase the capacity from 180,000 to 275,000 MTPA, taking total re-rolling capacity to 700,000 MTPA.

Ali Raza of Elixir Securities expects market to remain volatile and dull until there is some clarification on the verdict due by the Financial Action Task Force (FATF).

On the political front, Pakistan has sent Adviser to Prime Minister on Finance Dr Miftah Ismail to plead the country’s case at the ongoing session of the FATF that is taking up a US-sponsored resolution to put Islamabad on a list of countries that financially aid terrorism.

Traded volumes lifted by 34 percent day-on-day (DoD) to 170 million shares while value traded increased to $70 million. Top volume stocks were DCL (+3.82%), TRG (+2.60%), ANL (-4.58%), FFL (+0.47%), DFML (+1.22%) and LOTCHEM (+1.04).

EPCL (+1.52%) in the chemicals closed positive as the directorate general customs valuation (DGCV) has revised the customs values of UPVC, CPVC, PPRC pipes and pipe fittings under section 25 (9) of the Customs Act, 1969.

In the E&P sector, PPL (+0.14%) and POL (+0.34%) closed positive as the international oil prices edged up.

JS Research’s analysts expect the market to remain volatile and dull with flows from the local institutions and foreigners directing the market.

Published in Daily Times, February  21^st 2018.