Market remained dull as investors decided to remain sidelined ahead next week holidays. Equities opened up greeting new oil & gas discoveries made by OGDC in the NASHPA-1 well that will further impact earnings for the company by PKR0.55/share and PPL’s PKR1.31/share. The new discovery failed to excite the market as both E&P giants are trading SPOT (T+1) for cash and bonus payout, and possibly because locals tend to curtail their trading activity during last week Ramadan. Foreign funds activity seemed low as well possibly waiting for locals to exhaust their selling or probably not keen to push the market ahead of long holidays next week (due to Eid holidays). Interestingly financials particular smaller ones were sought after Finance Minister reportedly said that a proposal could be in the offing to exempt tax deducted on all NPL’s that may give some of the banks breathing space.
The market is now looking at two key events that could decide market direction. 1) Friends of Democratic Pakistan meeting in New York on Sep 23 and 2) Monetary Policy on Sep 29 that may see discount rate reduced by 50bps.
Source: Equities go slow
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