Karachi Stock Exchange Current Affairs

As I have explained in last article that after the announcement of a delay in monetary policy by SBP, KSE-100 index was suppose to be getting down. And that has happened exactly as was suppose to be. Last week was very disastrous. On Thursday (30th July, 2009) Karachi Stock Exchange was closed at 7491.76. We have seen a very intense fluctuation and volatility in market. The main reasons were same e.g.

  • State Bank has announced an extraordinary delay in announcement of Monetary Policy till 15 August, 2009 for the next quarter of the year in progress.

  • 3rd instalment from IMF was not approved.

  • The corporate result announcement season failed to create the expected buying momentum.

  • The major companies which have announced their results (in last week) e.g. UBL and Engro Chemicals didn’t fulfil the expectations of their shareholders.

  • Only Fauji Fertilizer Co. announced the result according to expectations of their shareholders.

  • The announcement of traditional trade policy for next three years, in this policy government has totally ignored the exporting sector and offered no incentives. And government also didn’t address the issues of power.

  • The depreciation of local currency also did not allow market participants to maintain their position higher.
The confused investors have sell out DG Cement, AZGARD NINE, ENGRO Polymer, Bank Al-Falah, Pak PTA, and others on lower rates. But at the end of last week (Friday 31st July, 2009), market has rebound, and closed at 7720.93 points. Because in the weekend there were some positive news circulating in market. e.g.
  • Shaukat Tarin has stated regarding IMF considering providing the additional financing for running up its economy.

  • High hopes and expectations of a huge assistance from Friends of Pakistan in this year.

  • Governor SBP has stated availability of enough liquidity in the system.

  • And there were rumours about SBP intention to cut its lending rate (discount rate) in monetary policy.

Fauji Cement, DG Cement, JS Companies, Maple Leaf Cement, and Arif Habib Securities were the volume leader last week. While Pakistan Refinery, Abbot Laboratories, Indus Motor, Dreamworld and Thal limited were major gainers. Askari Leasing, Wazir Ali industries, AZGARD NINE, Pakistan Reinsurance and Atlas Honda were major losers last week.

Written by: Rana Khurram

NOTE: The information posted in this blog (forum) is based on current afairs & invstors point of view. There may be discrepency in the ground realities

No comments:

Post a Comment