Pakistan Market Wrap; KSE remains resilient to Law & Order – Elixir Research
By: Sibtain Mustafa,
Elixir Securities Pakistan (Pvt.) Ltd.
Traders welcomed news about an understanding of our economic team with the IMF for a possible Extended Fund Facility programme for the next government to deal with a likely balance of payment problem, helping bulls to close KSE index at recent times highs. Day started off on relatively muted note in a reaction to worsening law and order situation, however volumes picked up in the second and third tier stocks after result announcement fueled sentiment. NPL PA +1% and KOHE PA +5% announced higher than expected earnings along with a surprise cash dividend of 25% in KOHE. AICL PA +5% closed at its recent times highs after the company announced its board meeting date where expectations are of significant other income due to its investment in ULEVER and resultant buy back at PKR 15000/shr. Furthermore, ENGRO PA +3% continued its drive after its analyst briefing further confirmed availability of gas to its new and old plant. A broad based activity with most of the volumes in third tier stocks dominated the charts.
Albeit fragility on the economy will keep widespread participation by institution, we expect FII interest to rejuvenate interest on completion of interim setup and successful transition to next democratic setup. We expect participation by key stocks to drive index higher.