Stocks recover 198 points on FATF relief

Published October 17, 2019
Stocks managed to retrieve some of the losses suffered in the last two sessions, mainly on the back of positive vibes coming out of the Financial Action Task Force meeting. The KSE-100 index recovered 197.56 points (0.58 per cent) on Wednesday to settle at 34,281.09. — AFP/File
Stocks managed to retrieve some of the losses suffered in the last two sessions, mainly on the back of positive vibes coming out of the Financial Action Task Force meeting. The KSE-100 index recovered 197.56 points (0.58 per cent) on Wednesday to settle at 34,281.09. — AFP/File

KARACHI: Stocks managed to retrieve some of the losses suffered in the last two sessions, mainly on the back of positive vibes coming out of the Financial Action Task Force meeting. The KSE-100 index recovered 197.56 points (0.58 per cent) on Wednesday to settle at 34,281.09.

The market opened in the positive and as investors rushed to take fresh positions, and the index shot up to intraday high by 351 point. The market cheered morning reports of FATF deciding to let Pakistan remain on the grey list till February watch further measures on elimination of terror financing and money laundering.

Although the announcement was not officially made at the ongoing meeting in Paris, investors were comforted that the country had managed to avoid a fall in the black list.

Later in the day, marketmen were seized by other realities as the International Monetary Fund forecast country’s growth to slow down to 2.4pc and inflation to peak at 13pc in 2020, before taking off following stabilisation measures.

Traders said that investors were also concerned regarding political developments that are leading to aggressive stance of a political party in conducting the long march and demonstrations in the capital city.

Foreign investors sold stocks worth $1.83 million and insurance companies also booked profit by sale of shares valued at $1.20m. Individuals kept their sangfroid and continued to mop up excess liquidity.

Sector-wise, oil marketing companies grabbed the spotlight with major scrips Shell, Attock Petroleum, Pakistan State Oil and Hascol were in demand. In exploration and production, Pakistan Oilfields closed weak while Pakistan Petroleum and Oil and Gas Development Company (OGDC) were steady. Banking also depicted mixed performance while fertiliser closed up.

Leading gainers were Pakistan Petroleum, up 2.44pc, OGDC 1.53pc, Engro Corporation 0.96pc, Pakistan State Oil 3pc, Bank Al Habib 1.48pc, National Bank 4.16pc, Fauji Fertiliser 1pc, Habib Bank 0.64pc, Nestle Pakistan 3.73pc and Colgate-Palmolive Pakistan 3.85pc.

Published in Dawn, October 17th, 2019

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