Elixir Securities Limited – Pakistan Market Wrap

Karachi, June 19, 2018 (PPI-OT): Closing Bell – Fertilizers Shine in an Otherwise Dull Market

Pakistan equities closed flat post Eid holidays with benchmark KSE100 index settling at 43,683 (up a mere 2 points from last close). Blue chips were dull in early trade, however large cap banks gradually slid throughout the day with MCB PA-2.5% and HBL PA -1.45% taking the lead in declines on reports of continuous selling by foreign investors. POL PA -1.24% and OGDC PA -1.55% also dragged the index on decline in international crude oil prices and market expectations of reduction in production cuts to be announced by OPEC in its upcoming meeting over the weekend.

On the other hand, Fertilizer sector stole the show as FFC PA +4.44%, EFERT PA +1.97% and FFBL PA +0.99% closed positive on reports of urea shortage and resultant retail price increase by the dealers in the market, with investors betting on another round of price hikes by the manufacturers if the government fails to release the overdue past subsidies. Expect market to remain range bound this week as locals keenly watch out for the outcomes on 1) FATF decision on Pakistan and 2) success of Amnesty Scheme which is due to expire by the end of this month.

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Elixir Securities Limited – Pakistan Market Wrap

Karachi, June 19, 2018 (PPI-OT): Closing Bell – Fertilizers Shine in an Otherwise Dull Market

Pakistan equities closed flat post Eid holidays with benchmark KSE100 index settling at 43,683 (up a mere 2 points from last close). Blue chips were dull in early trade, however large cap banks gradually slid throughout the day with MCB PA-2.5% and HBL PA -1.45% taking the lead in declines on reports of continuous selling by foreign investors. POL PA -1.24% and OGDC PA -1.55% also dragged the index on decline in international crude oil prices and market expectations of reduction in production cuts to be announced by OPEC in its upcoming meeting over the weekend.

On the other hand, Fertilizer sector stole the show as FFC PA +4.44%, EFERT PA +1.97% and FFBL PA +0.99% closed positive on reports of urea shortage and resultant retail price increase by the dealers in the market, with investors betting on another round of price hikes by the manufacturers if the government fails to release the overdue past subsidies. Expect market to remain range bound this week as locals keenly watch out for the outcomes on 1) FATF decision on Pakistan and 2) success of Amnesty Scheme which is due to expire by the end of this month.

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Elixir Securities Limited – Pakistan Market Wrap

Karachi, June 19, 2018 (PPI-OT): Closing Bell – Fertilizers Shine in an Otherwise Dull Market

Pakistan equities closed flat post Eid holidays with benchmark KSE100 index settling at 43,683 (up a mere 2 points from last close). Blue chips were dull in early trade, however large cap banks gradually slid throughout the day with MCB PA-2.5% and HBL PA -1.45% taking the lead in declines on reports of continuous selling by foreign investors. POL PA -1.24% and OGDC PA -1.55% also dragged the index on decline in international crude oil prices and market expectations of reduction in production cuts to be announced by OPEC in its upcoming meeting over the weekend.

On the other hand, Fertilizer sector stole the show as FFC PA +4.44%, EFERT PA +1.97% and FFBL PA +0.99% closed positive on reports of urea shortage and resultant retail price increase by the dealers in the market, with investors betting on another round of price hikes by the manufacturers if the government fails to release the overdue past subsidies. Expect market to remain range bound this week as locals keenly watch out for the outcomes on 1) FATF decision on Pakistan and 2) success of Amnesty Scheme which is due to expire by the end of this month.

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