Wednesday, September 2, 2009

Market Close !

Market continued to show signs of resilience despite profit selling in Oil stocks. Financials performed exceptionally well on foreign funds interest who are betting on improved macro economic situation and expectations 3QFY09 earnings will be healthier. Oil stocks underwent some pruning as investors booked gains given some oil stocks had risen exceedingly, although a late hour notice from the exchange confirmed NASHPA-1 reserves increasing marginally. Earnings impacts are meager with today's increase but will continue to keep interest in the stocks in the day's to come (notice attached). Barring BAFL, almost all major banks were at upper lock, a sight not witnessed for a long time, indicating strong interest from locals but more so foreign funds. Interestingly, MCB closed flat, finally taking a breather, whereas NBP and UBL were strong, with smaller banks being laggards in the current bull run.

The market continues to show signs of strength, despite increased political noise between the ruling PPP and PML-N, that will probably climax after Ramadan. Locals seems to be confused with the spate of foreign funds buying over the last few days, taking everyone by surprise. If FII buying remains, one can expect the market testing 9000 levels soon.


Souce: Closing Bell - Banks outperform market

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