Thursday, November 19, 2009

Market Close !

Pakistan equities traded volatile session with a positive open on the back of sentiment carried forth from yesterdays aggressive buying by FII (Net USD4.5mn and local institutions - Net USD6.3mn by Mutual Funds). Profit booking in late trading wiped away early gains with stocks mostly closing at day lows. Interestingly, E&P's failed to attract attention despite news that MOL Pakistan. operator of TAL block would invest between USD30-50mn to build a new gas processing plant (TAL Block ownership: POL 21%, OGDC and PPL 28% each). Media reports accusing OGDC's management of negligence that led to declining production from key Qadirpur field was brushed aside by the market. We are of the view that the news article was exaggerated and see no fundamental change, recommending to take advantage on any weakness. PTC traded highest volumes since March this year on local and foreign interest. We continue to recommend PTC on attractive yield with June2010 TP of over PKR26/sh.

We expect short-term market direction to remain sensitive to foreign flows with rate cut in the MPS to be announced on the 24th of this month a sweetener.

No comments:

Post a Comment