Karachi Stock Exchange Oct 3, Weekly Review

KSE – 100 index takes some technical corrections of 2.16 percent or 209.10 points on weekly basis and settled at 9,455.15 points. And 30 – Index also posted a decline of 2.53 percent or 264.61 points and closed at 10,170.68 points. Now it seems that rule of Bulls (since last 8 consecutive weeks) has been ended, and the last week was mostly outnumbered by bears. These corrections were expected since month of Ramadan, and now these corrections have pulled down the market by over two percents.

The following factors have adversely affected the Karachi Stock Exchange's market activities:

  • Introduction of Client Level Margining System (w.e.f 1st October, 2009) at the bourse, has resulted a decrease in daily turnover
  • The unproductive meeting of Friends of Democratic Pakistan (FoDP) at New York
  • State Bank of Pakistan move to keep the discount rates unchanged at 13 per cent, in the monetary policy review
  • Reduction of POL products’ prices following correction in international oil prices
  • The massive uninterrupted gain (of 25.17 percent or 1,943.32 points steep increase in last consecutive eight weeks) needed corrections
  • No buying friendly news witnessed resulted of panic selling
  • High inflation, high leverage cost and continuation of the unchanged rates of National Savings Schemes (NSS) up to 31st December, 2009
  • Non-availability of leverage products and fall in local oil prices
  • Rumours on RBS and MCB deal approval by SBP
  • Institutional profit taking
  • The prime minister this week approved increase in power tariffs by 6 percent as part of the agreement with the International Monetary Fund (IMF), World Bank and Asian Development Bank
  • The government plans to raise tariffs further in January and then again in March 2010
  • Petroleum prices were reduced in the range of 3.6-6 percent for October to adjust with the decline in the international oil prices

JSCL, AHSL, PTCL, TRG Pakistan, Karachi Electric Supply Corporation, 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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