Karachi, January 02, 2019 (PPI-OT): Closing Bell – Profit Taking Amidst Heightened Volatility
Benchmark KSE100 Index traded on both sides of the fence and closed down -201 points at 37,795 on institutional profit taking post strong gains yesterday. MCB Bank Limited MCB PA -3.15%, Lucky Cement LUCK PA -3.45% and Pakistan Oil Fields Limited POL PA -3.33% collectively contributed 139 points towards today’s decline. Descon Oxychem Limited DOL PA -5.0% and Sitara Peroxide SPL PA -5.0% traded heavy volumes and closed at their respective lower circuits after yesterday’s reports of cut in domestic Hydrogen Peroxide prices to PKR85/kg from PKR94-95/kg.
The domestic price weakness is a reflection of declines in global markets that has persisted over the last three months. During the day, Pakistan Bureau of Statistics also reported inflation figures where CPI for Dec-18 clocked in at 6.2% YoY – lower than Elixir Research forecast of 6.7%. Going forward we expect investors to wait till clarity emerges on IMF program while political dust settles down between Federal and Sindh Government on placement of prominent names on Exit Control List despite Supreme Court’s displeasure on the same.