Daily Times

Karachi: Pakistan equities closed positive settling benchmark KSE100 index up at 43,508 by gaining 279 points on the back of investors’ interest in oil sector. after losing 700 points in the last session.

The index made an intraday high of 361 points and a low of 12 points in during trading session. Financials and Energy stocks shored up the index whereas cements remained in the red.

Stocks showing recovery led by oil sector after US crude oil prices rose above $71/barrel on US quit over Iran deal. “Trade remained higher on institutional interest in oversold auto, banking and cement scrips. Upbeat data on autos, cement sales for April’18, rising local cement and auto prices and foreign inflows played a catalyst role in higher close in the post earnings season rally at PSX”, Ahsan Mehanti ,senior equity analyst commented.

In one development, the interim Finance Minister Shamshad Akhtar while commenting on the affairs of the economy for the first time since taking oath, shrugged off any concern of a highly distressed/unmanageable situation.

In another development, Supreme Court gave consent to the tax amnesty scheme announced by the former PML?N Govt. According to experts, there are strong chances that a large number of people will flock to avail the amnesty, both developments generated positive sentiments in the market.

Major heavyweights HBL (+0.7%), OGDC (+0.8%), UBL (+0.9%), ENGRO (+0.5%), MCB (+0.4%), POL (+0.9%) and FFC (+1.5%) cumulatively contributed 101 points. Traded volumes plummeted by 19 percent DoD to 112 million shares while value traded decreased to $47 million. Top volume stocks were BOP (+2.3%), MEBL (+5.0%) and KEL (-1.9%). PAMA released Auto sales data where we witnessed 5% YoY growth in May-2018, while 11MFY18 sales jumped by 21% YoY. GHNL (+5.0%) closed at its upper circuit, while PSMC (+1.6%) and INDU (+0.6%) closed positive as well.

NTC has imposed definitive antidumping duties on color coated coils in the rage of 5.36% to 14.24% against dumped import from China & South Africa. ISL (+4.4%) and ASL (+6.4%) closed positive in the steels.

Outlook: Analyst expect that the market will remain volatile and choppy with flows from local and foreign institutions directing the market.

Published in Daily Times, June 14^th 2018.