Equities closed lower despite US Congress passing US Kerry Luggar Bill paving the way for aid to Pakistan. After remaining higher in early trading primarily cheering the bill, market went into the red led by selling in Mansha Group shares. NML and MCB were both weak amid media reports that RBS Operations deal may have hit snags and possibly the group may come under Government pressure for not participating in the TFC issue that was raised for the circular debt. Besides, market braced itself for POL PA and ATRL PA results with the former announcing them right at the end of trading. POL PA surprised the market with PKR10/share cash payout with earnings slightly lower than expectations (EPS PKR23.75). We also feel new exposure rules commencing from today may have influenced selling pressure, as client level margins and each ID level margins rules will now apply, mitigating market risk.
We feel the market is consolidating around current levels with locals mostly selling. With lack of triggers in the short term, we can expect to see 9200 levels. However, key to market sentiment will be FII flows, as locals are mostly confused with the near term direction
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