Although equities today were peppered with volatility, market remained buoyant for most part of the day closing up 42points. US explanatory note on Kerry- Lugar bill was amongst the foremost drivers of positive sentiment along with the news that government would tax capital market and agriculture sector within 3yrs, as opposed to previous plans of July 2010. Suicide bomb in Northern areas and coordinated attacks on three different security facilities in Lahore draged index. However, stocks soon recovered led by index heavyweights OGDC and PPL witnessing a sharp increase fuelled by rumors of aggressive FII accumulation and announcement of 1Q results date (OGDC: 29thOct, PPL: 31st Oct). Additionally announcement by ENGRO to venture into milk, rice and urea exports resulted in spiked volumes with stock gaining 1.7%. Financials went opposite to market direction with reportedly NIT (state owned largest mutual fund) offloading.
Given that the security situation does not deteriorate any further we expect market to rally upward in the upcoming days on the back of an exciting result season starting from next week. AHSL results tomorrow after market, to be announced before next week's trading will set short-term tone.
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