Market Wrap Back at 30k... KSE100 Index 30,044|High 30,147|Low 29,858|Change +186|Value USD70mn|Vol 104mn Pakistan equities at last managed to cross 30k mark and closed above the resistance level on buying spree by institutional investors with locals also getting back in action to cover earlier sold position. Stocks opened on a milder note but soon gained momentum led by United Bank UBL PA +2.4% and Pakistan Petroleum PPL PA +1.7% to drive rally to touch intraday highs of 30,147. Second tiers continued to dominate flows with Auto sector closing higher on mixed bag of news about delay of Yellow Cab scheme and auto sales improving by 76% MoM; Pak Suzuki PSMC PA -2.5% will be worst hit in case yellow cab scheme gets delayed or abolished. Yesterdays hydrocarbon discovery in a field owned 100% by Oil & Gas Dev Co OGDC PA +1.4% with EPS PKR0.28 impact was a good enough reason for investors to take notice of this index heavy oil play that is due to see a GDR offering in coming months. Market has recovered almost 10% from its recent lows as political issues seem to be on a the right track to be soon settled however sit-in in the capital continue and negotiations are still under way. Furthermore, floods in Punjab and Northern Areas remain a concern for macros particularly on inflation and loss of crop. We anticipate the current momentum to cool off and likely see a mild breather as market tests 30,500 levels. Advise selling trading positions and shift to dividend yielding stocks NBP, HUBC, KAPCO. Textiles should be back in favor from next quarter and should be looked into on relative corrections. Elixir Securities.
Posted on: Fri, 12 Sep 2014 13:20:17 +0000
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