Market Close !

Equities tumbled by over 300points to close below 9,300 down 3.4% on renewed security concerns and fear of FII selling. Yesterday's selling by overseas investors and increased terrorist threats in the country with schools across the country shut till Sunday led to the declines. Market brushed aside positive news of shrinking current account deficit to USD462mn during first quarter FY10 vs. USD4.2bn in the corresponding period last year. Moreover FFBL's results failed to create any excitement with stock closing flat. Company announced EPS PKR 1.93 for 9MCY09 and interim cash payout PKR1.25/sh slightly below market expectation.

We expect market to monitor FII activity and more importantly the security offensive by the army against terrorists which is going to be crucial in our view. This operation in our view must end quickly otherwise could very well linger on, which will play on investors minds.