Market Close !

Equities witnessed volatile trading with KSE100 Index volumes highest in the last 29 months closing flattish below 9,700 level. Market opened strong as US gives Kerry Lugar Bill (USD1.5bn aid every year for the next 5yrs) green light. Heavy selling soon followed led by locals mainly in Oil stocks (POL bearing the brunt of selling) as international crude tumbles and institutions book gains pulling index down in red shedding 1.8% from day high. Fertilizer stocks continued positive as investors bet on higher fertilizer/DAP off-take leading to higher potential earnings, sector closing +2.9%. Foreign aid/support to restore infrastructure in war torn zone pushed cement stocks to close higher despite concerns of potential govt penalties on price fixing charges on bigger players. Holding stocks, AHSL and JSCL attracted interest as value buyers pick significant quantities with JSCL trading at upper lock entire day and AHSL trading highest volumes since floor was removed last year.

We believe that Friends of Democratic Pakistan aid and support by USA (Kerry Lugar Bill and Coalition Support Fund) could potentially lead to international ratings agencies further upgrading Pakistan's sovereign credit rating.