Karachi Stock Exchange Weekly Analysis Sep 13, 2009

Continuous increase in KSE-100 index since last two months and a steep rise (15 percent quick gains) since last month, lead market to take some corrections and pushed Karachi bourse into consolidation phase last week. According to analysts this correction was overdue, and a bullish activity could be seen in upcoming weeks, as foreign investors augmented to buying. Although in last week market was also witnessed below 9,000 points benchmark but the continuous inflow of foreign currency from offshore investors helped market to close at some decent level. KSE-100 index gains 56.09 points by improvement of 0.62 per cent and closed at 9,058.77 points. While KSE-30 index has closed at 9,699.04 points by increasing 47.89 points at 0.49 per cent.

Although local investors were seemed to be cautious and careful, and were trying to book profit s. But FPIs (Foreign Portfolio Investors) has injected another $28.55 million last week. Foreign investors continued to buy shares of blue chips like those of oil, banks and fertilizer sectors.

Textile and Fertilizer sectors have performed really well last week. Because of the positive news from the textile policy and a bright future ahead for the industry. And the procurement of Rabbi season has increased Urea demand.

The following factors effect market positively:

  • According to the World Bank’s latest report, Pakistan has got the top position in “Ease in doing business ranking” in Asia, and retained its 85th position in the world. This news has also attracted offshore investors to Pakistan
  • Rise in commodity prices including local cement prices, crude oil prices
  • Lower CPI figure for August at 10.69 percent on yearly basis
  • Rising auto sector growth by 23.37 percent for the first two months of 2009-10
  • Record remittances of $780 million in August and expectations of early resolution of circular debt issue

Pak PTA, Jahangir Siddiqui and Co., OGDC, National Bank, DG Cement were the volume leaders while Askari Leasing, JS Global Capital, PICT, Nishat Mills and PNSC were major gainers.

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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