Karachi, December 19, 2017 (PPI-OT): Closing Bell – Extends Decline With Energy Sector Weighing On Market!
Pakistan Equities extended declines with KSE100 Index settling down by 465 points and 109mn shares changing hands at the exchange. Major drag to the performance came from the Energy sector as sentiments were dented post Premier advising Power Ministry to completely phase out FO-based power generation going forward due to their negative fallout on environment; Kot Addu Power KAPCO PA -5%, Attock Refinery ATRL PA -4.7% and National Refinery NRL PA -5% traded at their respective lower price limits while Pakistan State Oil PSO PA -2.8% that commands ~75% market share in the FO segment also traded under pressure (for FO forecasts, please refer to our research note titled “Pakistan OMC Sector – Incorporating Lower FO Sales Forecasts”).
Meanwhile, on the corporate front, Nishat Mills NML PA -1.6% reiterated its intention of offering 18% stake to Millat tractors MTL PA -0.6% in its newly formed subsidiary Hyundai Nishat Motors. Expect market to be driven by political noise in the near-term as Pakistan Awami Tehreek (PAT) announces to give future roadmap by end of December.