Market Wrap Politics remains the culprit KSE100 Index 27,811|High 28,307|Low 27,584|Change -432|Value USD58mn|Vol 94mn Pakistan equities dragged lower to test recent lows of 27,500 levels as politics continues to dent sentiment. Although the decline continued for more than 550 points halfway, state institutions and some foreign buying at lows helped limit losses and pushed stocks to close above days averages. Sellers were mainly individuals and local institutions as locals fear harsh consequences amid PATs clerics deadline to the government to register police report against killings of its supporters by forces in July. Meanwhile, Prime Minister addressed the national assembly taking in confidence the parliament amid political turmoil and stressed on needs of negotiations. With sit-in now in its in fourteenth day, political forces are very active in finding a common ground however both govt and protesting leaders refuse to budge, increasing fears of some sort of intervention. Significant improvement in broader market turnover and off market crosses reportedly by foreign investors to help market settle at current levels baring any further negative on political front. We understand that all the stakeholders including the Army wants a peaceful resolution to the ongoing crisis in a democratic fashion with leading media houses quoting key political experts and insiders about possible end to the deadlock very shortly. With KSE 100 index trading at attractive forward PE of 7.8x, we maintain our target of 38,000 and see a very sharp bounce back as dust settles. Sibtain Mustafa smustafa@elixirsec
Posted on: Wed, 27 Aug 2014 14:39:52 +0000
Trending Topics
Recently Viewed Topics
© 2015