Pakistan equities closed Monday negative with benchmark KSE-100 Index shedding 561 points, closing at 40,327 levels, further down 1.4 percent.
The local bourse remained volatile KSE-100, making a high and a low of +189 & -669 points, respectively with very low volumes.
An equity analyst at Al Habib Securities said the gloomy opening of the benchmark KSE-100 index, after touching an intra-day high of 187.47 points, experiencing a fluctuating pattern of an intra-day low of 666.22 points, mainly due negative sentiments prevailing in the market, as IMF stands ready to support Pakistan on some conditions, includes further depreciation of rupee coupled with rising interest rate which could possibly hindered investors to opt fresh new position in the market. Another reason behind this shed was because of Moody’s statement in which they downgraded Pakistani banking system outlook to negative from stable.
On the economic front, Prime Minister Imran Khan held meetings with top officials from the UAE government as well as the IMF at the 7th World Government Summit (WGS) where it’s believed, despite all positive vibes, nothing concrete has been revealed regarding the specifics of a new IMF program yet, said an equity analyst, Danish Ladhani.
Major sectors dragged the market down where top scrips, Habib Bank Limited (HBL) losing 2.5 percent, PPL (-1.1%), ENGRO (-0.6%), OGDC (-1.6%), MCB (-1.6%), FFC (-1.2%), UBL (-2.1%), LUCK (-2.6%), POL (-1.4%) and BAHL (-1.1%) cumulatively -273 points to the negativity. In Cements LUCK (-2.6%) and DGKC (-1.5%) were the major laggards whereas DGKC (-1.5%) despite the International Coal prices dropped correspondingly.
In Fertilizers, Engro (-0.6%) and FFC (-1.2%) closed in the red. However, Government of Pakistan has granted a 50% waiver in Gas Infrastructure Development Cess (GIDC) payables to fertilizer sector, IPPs, Gencos and general industry including captive power units.
Daily traded value stood at $45 million, down 27 percent while volume stood at 134 million, down 21 percent. Furthermore, major contribution to total market volume came from KEL (-2.2%), DFML (-5.7%), PAEL (-4.0%) and ANL (+2.8%).
Ladhani expect market remain volatile and choppy in the upcoming session. However sentiments are expected to remain positive in the long run while short term profit taking expected at these levels.
February 12th 2019.