Todays Market

The Index closed up sharply today, up over 2pc or 683pts at 32393. The chart pretty much summarizes activity today. Volumes were stable at 191mln shares while value traded rose 20pc to Rs. 9.3bln. Investors rushed to take advantage of values after days of sustained selling. Cements saw active interest with DGKC, MLCF, Pioneer closing at or near upper cap. The cement sector managed to escape additional duties recently imposed by GOP. Additionally Pak Elektron, Amreli Steel, Ghandara Nissan, MCB, Nishat Mill, Honda Car, General Tyre, Crescent Steel Attock Refinery and Al Shaheer closed at or near upper cap.

Direction and magnitude of foreign flows will continue to influence market direction, especially after todays sharp runup. Recent weakness of the Rs vs the USD has hit sentiment. Regulatory regime for capital markets is also on investors radar and positive developments in this regard could provide support to equities.