Karachi Stock Exchange Oct 11, Weekly Review

KSE-100 index have performed well during last week and closed at 9,768.63 points after the increment of 313 points or 3.31 per cent. KSE-30 index also surged to 10,381.25 by increasing 210.57 points at 2.07 per cent. KSE-100 index was witnessed highest point (since last year) in last week and touched 9,836.50 points on Wednesday. Analysts are expecting KSE-100 index may cross psychological level of 10,000 points, if the bullish trend continues in days to come.

According to pundits, the Karachi Stock Exchange has risen up to 60 per cent since early this year. Local investors are showing their interest in banks, oil and cement sectors. Because of expectations of positive result announcements next week for September quarter.

Following factors are playing a catalyst role in positive activity at KSE:

  • Massive foreign investment in Banking, Oil & Gas, Cement and Fertilizer Sectors. According to NCCPL offshore investors have injected more $5.6 million in last week
  • Oil & Gas discovery by OGDCL in Sanghar
  • Positive activity witnessed as oil price crossed $71 per barrel on weak dollar
  • Rise in local Cement price
  • Rise in foreign exchange reserves to $14.75 billion
  • Surge in global equity market
  • Expectations of early approval of leverage products
  • Strong results of Banks, Oil & Gas and Cement sector, are expected for September quarter

But remember there are some factors which have also affected market activities, and is shattering the confidence of local investors:

  • Terrorists attacks on different places throughout the week. e.g. a suicidal attack at UN World Food Program (UN-WFP) office Islamabad, powerful suicidal bomb blast in Peshawar and a recent attack at GHQ Rawalpindi
  • Reservations of Pak Army and Political turmoil on accepting Kerry-Lugar Bill
  • Political noise on expiry of NRO

JS Company, Bank Al-Falah, AH Securities, PTCL, NIB Bank, was on top last week.

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.

Written by: Rana Khurram

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