June Review

The market closed up 1721 pts (+4.8pc) during June marking the highest monthly increase since Mar 2016. Turnover fell 33pc to 172mln shares while value traded fell 10pc to Rs 10.13bln.

The highlight of the month was Pakistan's inclusion in MSCI EM which gave expected impetus to the index. Unexpected exit of Britain from the EU caused the market to surrender some of its gains before recovering to close at 37783. From its peak close at 38777 the index lost over 2000pts before recovering half of those as Brexit fears receded.

Top performers during the month were NRL, HCAR and FATIMA.
RMPL and WYETH were the worst performers.

Banks gave the most support to the index during the month, followed by cements. Oil took a breather with crude prices hovering around USD50 level.

Inflows during the month came in at USD74.7mln. May's inflow was USD 3.6mln.

We expect the market to remain positive following Eid Holidays, with flows providing crucial direction to the country's improving macro fundamentals. Post eid domestic politics will likely be of concern to market participants.