Karachi, June 21, 2021 (PPI-OT): View from the desk

Despite opening on a positive note, the KSE100 index could not sustain above the 48,000 level and fell victim to across-the-board profit taking. The market remained under pressure for most of the first day of the roll-over week as it slid 226 points to close at 48,012 level. Overall volumes increased by 12% DoD to 839mn shares. SILK (16.9%), HUMNL (-2.7%), WTL (-2.9%), PIBTL (1.2%) and FFL (2.2%) led the volume charts as they cumulatively contributed 53% towards the aggregate volumes.

PSMC (2.6%) from the auto sector gained to close higher on the back of news that the government may extend the tax relief to cars up to 1000cc in the recently proposed Finance Bill, with the aim of promoting affordable cars and localization in the country. Selling pressure was witnessed in the cement sector where FLYNG (-1.5%), PIOC (-1.9%), DGKC (-1.5%), MLCF (-1.1%) and FCCL (-1.2%) lost value to close negative. Going forward, we recommend investors to employ a ‘Buy-on-dips strategy’ in Construction and Refinery stocks.