Pakistan equities witness little change – Elixir Research
By: Muhammad Raza Rawjani,
Elixir Securities Pakistan (Pvt.) Ltd.
Pakistan equities closed marginally negative as locals were seen booking profits after the index failed to sustain at its new high. Despite substantial foreign inflow yesterday and throughout November, equities today had a lackluster start reflecting the nervous sentiment at current levels and traded the entire day in a narrow band of 100 points. Moreover, another US drone strike today despite assurances on the counter further jolted confidence and rekindled anti-US sentiment and thus risks to blocking of NATO supply routes. Pakistan Telecom PTC PA +0.5% continued to lead volume charts backed by reported foreign buying along with chartists after the stock closed above a major resistance level this week. Likewise, momentum play continued in DG Khan Cement DGKC PA +1.1% after the stock had lagged the index in the recent run. On the other hand, profit taking in Nishat Mills NML PA -3.6% kept the stock in pressure. Likewise, reports that Omung, a product by Engro Foods EDOODS PA -3.9% had been banned by the Punjab Food Regulatory Authority after it was found to contain sub-standard contents pushed the company and its parent Engro Corp ENGRO PA -2.9% into red.
With market trading near its high, it is expected to trade volatile. We reiterate that foreign flows will continue to guide direction in the absence of major triggers.