The market helped the fertilizer sector, which

The stock market of Pakistan
for most part of the year had been tormented by political noise, with
sentiments bringing the market to its knees. But the second half of December
2017 showed major positive signs as the market made miraculous recovery from a
16-month low of 37000 to depict a return of around 6% to reach 40000 pts points
by the end of the year. This positive uptick and the elimination of the
political noise that was leading the bearish sentiments was mostly achieved by
the positive flow of news on the political front that came in the form of the delimitation
bill passed by the Supreme court forging way to smooth and timely elections.
Moreover to it, the increase in Urea prices in the international market helped
the fertilizer sector, which was one of the few winners driving the uptick in
the index. The Growth in LSM output and a 9.6% 4MFY18, with the spillover
effect of CPEC reflecting in the increase showed by the iron and steel sector
which contributed 44% of the total growth in LSM, increase in automobile (28%)
sector also helped improve the index position. The E&P sector also showed
positive signs, with the depreciation of rupee coupled with increase in oil
prices attracted investors to the sector. OGDCL recorded profits amounting to
around Rs. 25Bn for 6MFY18 depicting an increase of 7% YoY compared with the same
period in the previous year. Cement sector was one of those that suffered the
most with unprecedented increase in coal prices which account for 70% of the
costs incurred by the sector as lucky cement recorded profits for 6MFY18 at
levels that were around 7% lower compared to the same period in the previous
year. Lastly, the depreciation of PKR brought about inflationary expectations
which with it brought the imminent interest rate reversal earlier than
expected, this reflect positive outlook for the banking sector too, as private
sector borrowing had already increased by 20% YoY.