Karachi, January 08, 2019 (PPI-OT): Closing Bell – E and Ps Drive Index on Rallying Oil Prices
Pakistan equities extended gains from yesterday with benchmark KSE100 Index settling above 39,000 levels after marking an intra-day high of 39,148 in mid-day. Recent rally in the international oil prices garnered investors’ interest causing sharp recovery in Oil stocks viz. Oil and Gas Development Company OGDC PA +2.99%, Pakistan Oilfields Limited POL PA +2.74%, and Pakistan Petroleum Limited PPL PA +4.79% (climbing up to test yet another upper price limit).
On the other hand, cement stocks rallied on declining coal prices with Lucky Cement LUCK PA +1.97% and Dewan Cement DCL PA +5.37% remaining in limelight, and DG Khan Cement DGKC PA +1.71% and Maple Leaf Cement MLCF PA +3.66% sustaining a steady rising momentum. Refineries rallied during the day with Attock Refinery ATRL PA closing on upper circuit as government issued notification to immediately ban imports of furnace oil and ordering refineries to enter into agreements with IPPs for utilization of latter’s capacity for storage.
Retail favourites dominated the volume charts with TRG Pakistan Limited TRG PA +4.88%, K-Electric KEL PA -1.11%, Bank of Punjab BOP PA +2.66% and Lotte Chemical Pakistan LOTCHEM PA +1.89% collectively contributing 36mn shares or 22% of the total traded volumes in the regular market today. Going forward, we expect investors to focus on details of supplementary budget along with GoP negotiations with IMF for a proposed bailout program.