Monday, October 26, 2009

Market Close !

Pakistan equities remained sideways amid deteriorating security situation that played on investors' minds ahead of the weekend. Despite POL results in early trading that beat market expectation (EPS PKR6.03 for first qtr), fear of security threat escalation kept investors sidelined. MCB was a star performer that closed upper lock releasing nine month earnings at PKR17.08 with cash payout of PKR2.5/sh. On the contrary, PSO dampened mood down 4.94% at close despite posting PKR11.11 per profit vs. massive losses last year.

With market down over 7.5% this week, we expect equities to pick with 9000 being crucial support level. Key will be FII flows and a quick and successful operation against militancy in South Waziristan. Market will track JSCL results on Monday with speculation the stock will post Q1 PKR4.5 EPS.

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