Karachi Stock Exchange Updates

Since last month, we are continuously watching KSE market very closely and thoroughly. And we are suggesting people to invest in companies which you think are appropriate. We have seen Overseas Investors, small investors and day traders have shown their interests in almost each sector e.g. Banks, Securities companies, Oil & Gas exploration and production companies, Cement, Automobile, Fertilize and Textile etc. In this month (July 2009) we have realized that there is a very positive environment has been created, and it is very ideal time of investment. There are some good news for investors e.g. the possibility of a significant cut in the State Bank’s lending rate ahead of announcement of major corporate results, Capital Value TAX, and as you know KSE has banned the deliverable futures nearly four months ago. Now according to current circumstances, Board of directors at KSE has taken a decision to re-launch of deliverable future contracts in 10 stocks, mainly blue chips namely POL, OGDC, PPL, PSO, HUBCO, FFC, Engro, MCB, NBP and UBL. They have a combined weight of 49 per cent in the overall market capitalisation, hence we expect volumes to improve further, going forward. We have also seen a positive meeting amongst the leaders of Pakistan, India and Afghanistan for the settlement of all outstanding issue, and also a favourable meeting between leadership of PML-N and president Asif Zardari. All these factors have revived the confidence of investors.

Beside these good news we have also seen some bad news in our country e.g. Rain and electricity problems in Karachi, Load Shedding and Water problem throughout the country, Swat operation and terrorist activities, strikes etc. But hopefully these issues will be resolved soon in upcoming weeks.

In last week (ended on 18th July, 2009) KSE 100-index has rise up to 3.5 percent and achieved the highest psychological level of last quarter. With a plus of 261 points our market has reached 7764 points. KSE 30-index has also achieved its highest level after rise of 4 percent, with a plus of 316 points it is now at 8348 points.

As we have already discussed that upcoming weeks are very important and ideal for investments. FFBL is expected to announce its first half results on 22nd July, 2009. And according to experts, there are expectations of positive profit and decent dividend announcement by the FFBL should also bode well for the FFC (having 51 per cent stake in company). And according to analysts any further clarity on power tariff hike and resolution of circular debt issue should boost investor confidence in HUBCO and KAPCO.

Last Week’s Top Companies

E 1) FU General Insurance
2) DG Cement (continuously on top since last month)
3) Javedan Cement
4) Pak Suzuki
5) Thal Limited
6) Arif Habib Securities
7)NetSol Tecnhologies

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