KSE lacklustre amidst political turmoil

Karachi Stock Exchange (KSE) stocks traded on low volumes in a volatile session as local politics enters new period of turbulence after an MNA of PPP bashed out leading political party MQM as a terrorist organization and interior minister as conspirator for recent killings in Karachi. Leading political analysts are of the view that recent development will affect PPP-MQM relationship and will redesign Sindh Provincial cabinet.

KSE Stocks settled on a mix tone as NBP continued its five weeks descent on rumours of Foreign Institutional Investor selling. Oil stocks played in a narrow range as lack of institutional activity failed to excite jobbers to participate.

Surprisingly, NML warded off negativity to end on its upper lock after its date for Board Meeting was announced, as rumors of higher cash payout (Market Talks of PKR 4/shr) attracted new buys.

We see low volumes owing to last trading day for the week at KSE (Eid Holidays from Wednesday 31 Aug to Friday 02 Sept 2011). However, cheap valuations at KSE will entail buyers in NBP, NML, ENGRO. Also Attock Group may attract buying interest ahead of its forth coming results on expectations of higher payout and earnings.

KSE-100 index closed up +2 points after trading lower throughout the day.

KSE-100 Index 10,903|High 10,923|Low 10,760|Change +2|Value USD 20mn|Vol 33mn

Elixir Securities

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