Daily Times

KARACHI: Pakistan equities closed on Thursday in red with benchmark KSE100 Index settling over 42,500 level. The benchmark KSE 100 index lost around 325 points intraday to close at index level of 42,536 points, down 236 points from previous day’s close.

After a sideways opening, market traded choppy in a range bound fashion until noon, after which institutional selling in the last two hours dragged the Index down.

Market activity couldn’t pick its pace during the day as investors are getting no updates/plans on lingering political and economical issues. Rising current account deficit, depleting foreign reserves, ongoing sessions in Bangkok related to FATF, and inconclusive meeting between opposition leader and PM over selection of caretaker PM are hammering investor’s sentiments.

Cements were among the major decliners as investors eye the ongoing expansionary wave with scepticism.; Lucky Cement LUCK PA -2.8% dented KSE100 Index the most and traded at levels last seen in January. Financials closed mixed with United Bank UBL PA and Habib Bank HBL PA ending flat while MCB Bank MCB PA closing -1.5% down on good activity.

Foreigners have sold over $45 million worth of equities in Pakistan during May 2018, that is almost double than last month Apr 2018 on back of global Emerging market sell off and domestic issues..

Investors to keenly await for Monetary Policy Announcement scheduled after market hours on Friday that is expected to set the tone in sessions ahead. The consensus is emerging towards a hike of at least 25 bps in the Discount Rate.

Published in Daily Times, May 25^th 2018.