Karachi, July 01, 2021 (PPI-OT): View from the desk

Optimism continued today as benchmark index added 445 points and closed at the level of 47,801 on the first day of the fiscal year. Headline inflation for Jun-2021 was announced today, which clocked in at 9.7% YoY vs 10.87% YoY during May-2021. Cement sector remained in limelight where LUCK (2.8%), DGKC (2.1%), MLCF (1.1%), FCCL (1.0%) and PIOC (0.5%) were among the stocks from the sector that closed in the positive zone.

Traded volumes increased by 38% to 760mn shares today, where the highest contribution came from WTL (3.5%), SILK (-0.5%), TPL (-2.7%), HUMNL (6.6%) and PACE (5.8%). In other news, NAB has reportedly allowed Power Division to process payments to IPPs of Power Policy 2002. Moreover, Oil Refining policy is expected to be presented to cabinet soon. We expect the market to maintain the positive trend and recommend investors to buy on dips in construction and refinery sectors.