Karachi, October 04, 2018 (PPI-OT): Closing Bell – 2018TD Gains Wiped Out!
Pakistan equities closed red with benchmark KSE100 Index settling below 40,100 level, taking 2018TD losses to 1.0%. Market kicked-off on a positive note making an intra-day high of 43 points, however it later skidded lower and bears dominated as benchmark Index made an intra-day low of 566 points – momentarily breaching the psychological 40k level. Investors were wary of International Monetary Fund’s (IMF) recommendations (as per news reports) of further raising policy rate to 11% (from 8.5% at present) and devaluing currency by another 15% in FY19.
On the corporate front, Fauji Fertilizer Bin Qasim Limited FFBL PA +2.76% and other shareholders have appointed Financial and Legal Advisors to move ahead on the proposed divestment of 51% shareholding in Fauji Foods Limited FFL PA +2.50% to Inner Mongolia Yili Industrial Group Co. Limited. Expect weaker market in near term until clarity on curtailment of twin deficits emerges – key decisions from the government will likely be announced after the By-Elections, scheduled for October 14, 2018.