Daily Times

KSE-100 index continues its bearish trend into the third week, drops 267.20 points on Monday despite numerous agreement worth USD 20 billion between the Kingdom of Saudi Arabia and Pakistan.

Crown Prince, Mohammad Bin Salman, arrived on Sunday on a two-day official visit where he announced to increase investment stake in Pakistan to USD 20 billion in petroleum, energy, petrochemicals, finance, foods and other sectors. Despite these positive surprises, regional tension with neighbouring countries weighed on investors’ sentiments, said an equity analyst at AAH Securities.

In addition, buying activity remained muted as FATF is to decide the fate of Pakistan’s listing/de-listing from the grey list.

Cements remained the major laggards due to the geo-political tension between Pakistan and India where the latter has withdrawn the Most Favored Nation (MFN) status from Pakistan and slammed 200 percent customs duty on all imports from Pakistan.

Resultantly, DG Khan Cement and Maple Leaf Cement closed near the lower circuit whereas Lucky Cement also closed in the red. Habib Bank Limited, Engro, Hubco, MCB Bank, Fauji Fertiliser Company, United Bank Limited, Lucky Cement, Bank ALflah Limited and Engro Fertiliser cumulatively contributed -93 points to the close.

In the fertilizer sector Engro and FFC closed negative. Pakistan State Oil (PSO) announced its first half of 2019 EPS of Rs10.86 with no cash payout while Ghani Gas reported first half FY19 EPS of Rs8.99.

Daily traded value stood at $34 million, up 1 percent, as 99 million shares changed hands (+6%). K-Eelctric , Pakistan Elektron and Fauji Fertliser Limited (FFL) (+0.1%) remained major contributors to the volume.

An equity analyst Danish Ladhani expects market to remain negative on geo-political concerns.

Published in Daily Times, February 19^th 2019.