Thursday, August 27, 2009

Market close !

Equities witnessed another volatile day closing flat with index facing resistance near 8,300 levels. As market players remain divided on the short term outlook, participants were hesitant in taking fresh buying positions in an overbought market. Moreover, rise in Treasury Bill cut off rates yesterday, 12 month rate up 22bps to 12.44% possibly contributed to the tentativeness as it hints that further discount rate cut in next MPS may not happen. Volumes did pick up late in the day led by oil stocks POL ahead of its results and whispers of a bonus payout. MCB kept interest alive as it stayed strong on account of foreign inflows coupled with Nishat Mills Ltd (NML PA) acquiring PKR1.6bn worth of MCB shares.

With the index showing resistance at 8,300 levels we expect to see volatility tomorrow ahead of the weekend. NBP (HY results on Saturday) is likely to remain weak on rumors the bank may show much lower earnings spooked by increased NPL's.

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