May saw another month of gains with the index picking up 1343pts or 4pc to close at 36062. Turnover during the month increased 15pc to 271mln shares while value traded rose 10pc to Rs. 11.2bln. March saw the market rise 1769pts while April's gain was 1580pts bring up a 15pc gain over three consecutive months.
May saw the market rise to its all time high of 36694 just shy of 37000. The budget in two days and MSCI potential reclassification are major events that could provide impetus to the market.
Top performers during the month were MARI, Feroz and HASCOl putting in hefty double digit gains in the range of 16-24pc.
Cements with the exception of LUCK took a breather for the month. Banks were hurt by the surprise discount rate cut this month. FCCL was the worst hit on plant damage losing 10pc during may. Kapco turned in a stellar 13pc return during may with the rest of the IPP's remaining relatively soft.
Flows during the month turned postive at USD 3.6mln. April saw an outflow of USD18mln. Cements, Oil and Gas Marketing and Food saw the most inflow during the month while commercial banks and Other sectors saw the most outflow. We believe that at these levels, quantum and direction of flows from potential reclassification will lead market direction.
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