Pakistan equities shying away from 25k – Elixir Research
By: Fareesa Baig,
Elixir Securities Pakistan (Pvt.) Ltd.
Pakistan equities brushed aside any macro concerns and continued with the positive momentum, closing the first trading day of the week just a point short of 25k. Market participation was notably active in financials with United Bank UBL PA +1.4% topping the list, while Bank Alfalah BAFL PA +0.04% also generated interest over year end payout and earnings excitement. Index heavy Oil & Gas Dev Co. OGDC PA +0.8% followed suit and picked up momentum, gaining strength amidst thin volumes over reported foreign interest. Attracting significant investor interest was Engro Corp ENGRO PA +3.5% that almost hit upper price limit intra-day over morning news of Ministry of Finance agreeing on gas supply to the company at a concessionary rate. However, cements traded lackluster with Lucky Cement LUCK PA -0.6% and DG Khan Cement DGKC PA -0.09% closing marginally negative due to expected seasonal slowdown in demand.
With the index testing new highs, we expect higher volatility given the challenging macroeconomic scenario and declining valuation gap. We continue to advise caution and suggest remaining selective at these levels.