Thursday, October 8, 2009

Market Close !

An extremely volatile trading session ended with market closing down below 9,750 as political debate on the US Kerry-Lugar bill heats up. Equities traded higher in early trading with index touching intraday high of 9,937 ignoring strong statement issued by the Pakistan Army high command that could potentially lead to a rift between two major pillars and also putting on hold much needed USD inflows. Stocks faced strong resistance at 9900 level with locals aggressively selling. LUCK had an extremely volatile day dipping by 7% in a matter of seconds amid reports Saudi Arabia has lifted ban on cement exports but the stock continued to solicit interest probably due to upcoming board elections (USD28mn worth shares traded today). PTC PA too closed at lower lock as media reported USD500mn arrears of PTC privatization proceeds because of pending real estate title issue.

Today's breather was way overdue, although we feel the market should correct a further 4-5% before we recommend any fresh buying. A possible positive trigger could well be amendments in K-L bill by the US after its criticism by Pak Army and major political parties. Further, any relief to banks by the Central bank will lead to continued upside in financial sector.

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