KSE Upcoming Week

As we have discussed, market has taken some technical corrections by the start of last week and comes down. But then rises up to 8107.94 points after the increment of 96.63 points on the end of last week. Remember, this is the highest level of index witnessed in this year (2009). The market is closing on positive since last three consecutive weeks. And has gained 387 points and increment of 5 percent since last three weeks.

And it is also expected that Karachi bourse benchmark will stood high in upcoming week because of following factors:

  • Decrement in discount rate of SBP, as SBP have announced 100bps (in rate of 13 percent) in its discount rate
  • The approval of 24 projects including the Bhasha Dam project by the Executive Committee of the National Economic Council. It is good news especially for the Cement sector
  • Increase in export of Cement from Pakistan
  • Foreign investment in Banking, Oil & Gas Sectors
  • According to SECP (Securities and Exchange Commission of Pakistan) approval of financing. There is a news of early introduction of leverage product i.e. Margin Financing (MF)
  • Expectations of resolution of circular debt issue of OMCs, IPPs, oil refineries next week
  • Rise in international oil prices near to $73
  • Expectations of record result announcements by oil exploration companies next week

As holy month of Ramazan has started, with the shorter working hours, and the Eid festival at the end of this holy month, trading volumes generally drop by 18 percent compared to an average of the previous three month as per study of historical data.

National Refinery have announced 125 percent and Attock Cement have announced 32.5 percent dividend. DG Khan Cement, PTCL, and OGDC were on top 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

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