Karachi, December 11, 2017 (PPI-OT): Closing Bell – PKR volatility again testes nerves!
Pakistan Equities erased all of Friday’s gains to close at seventeen-month low. Market opened positive and early trading saw KSE100 Index shooting by over 350 points helped primarily by gains in E and Ps. However, as the day progressed, institutional selling dragged down index where notable names across Cements, Ferts and Banks bore the brunt and pulled benchmark KSE100 Index in negative zone below 38,500 level.
Interestingly, Hub Power HUBC PA -1.1% and Nishat Mills NML PA -0.0%, that stand to benefit from Rupee depreciation, failed to trade higher despite Rupee further sinking by another ~1% against greenback in interbank market today (PKR/USD closed at 108.4). Via a press release by SBP on Friday, the Central Bank showed its willingness to let the PKR find its direction through demand and supply in the market, which alleviated the volatility today and is likely to remain market’s key focus in the days to come. Given that today’s settlement figures do not show major selling by Foreigners or Domestic Asset Managers, we see support to kick in tomorrow near current levels.