KARACHI: Pakistan Equities (KSE100) rose by 2.4% or 912 points WoW to close at 38,430. Average daily volume traded improved by 13%WoW to 199mn shares however most of it was concentrated in low-priced stocks as average traded value actually declined by 5.2% to $49 million. Amongst the economic developments, State Bank of Pakistan’s (SBP) foreign exchange reserves declined by 2.6%WoW (USD219mn) to USD8.1bn as at October 12, 2018. The decline came on the back of debt servicing and other official payments. Total liquid forex reserves held by the country stood at $ 14.6 billion. Amongst the listed sectors, Cements, Oil Marketing Companies (OMCs) and Fertilizers remained the major drivers contributing 171 points, 118 points and 101 points (19%, 13% and 11%) to the Index and returned 7.0%WoW, 5.5%WoW and1.9%WoW, respectively during the outgoing week. The return in Fertilizer sector can be attributed to Engro Fertilizers’ (EFERT) third quarter 2018 result. The company announced nine months 2018 EPS of Rs 9.2 (up 77%YoY) and also declared an interim cash dividend of Rs4.0 taking year to date dividend to Rs8.0. The outgoing week encompassed a mix of quarterly results out of which EFERT and Lotte Chemical Pakistan (LOTCHEM) entailed positive surprises while United Bank (UBL) and Mari Petroleum Company (MARI) were major disappointers. Foreign selling for the week stood at $ 19.1 million. On domestic front, Companies, Individuals and Brokers bought shares worth $ 5.8 million, $5.2 million and $ 3.1 million, respectively. Elixir Research Department said investors will keep a close eye on Prime Minister’s visit to Saudi Arabia next week. As per news reports, the PM will seek financial aid of around $ 5 bilion in cash from Saudi Arabia and China (scheduled visit in November). “We do not expect these developments to allow Pakistan to avoid an IMF Bailout – nonetheless, any positive news flow from the Saudi visit can sustain the new found positive momentum in the market”. Published in Daily Times, October 21st 2018.