Market Close !

Equities closed on a strong note (+2.72%) led by rumors of oil discoveries pushing energy stocks higher. PPL was the star performer hitting upper check on talk of sizeable discoveries in the 'NASHPA-1' block that is co-owned by PPL (26%), OGDC (56%) and remaining Government holdings. The size and impact of the discoveries could not be confirmed as the same had not been updated by the respective companies. Aside from healthy activity in oil stocks, the market was also probably happy to see the GOP seriousness in resolving the buildup of 'corporate debt' with Finance Minister saying they planned to settle the issue before month end. PSO and HUBCO both companies that are listed are expected to benefit most if the issue is resolved, with higher payouts expected in the next quarter earnings season. NBP also gained ahead of its results tomorrow with market talk of decline in earnings due to bad loans, but gossip in market quoting a possible cash payout to ease shareholders concerns.

Market continues to perform very well spurred by sustained foreign flows. Although the market is in over bought region, locals seem to be happy to remain long expecting FII inflows to continue on improved macro economic outlook. With NBP results on Monday, market is expected to remain volatile. BUY banks for now as we feel most negatives have been priced in.