Karachi Stock Exchange Weekly Analysis November 21, 2009

After thoroughly reviewing Karachi Stock Market index last week, we came to know that market performed very well and surged positive points. During last week, KSE - 100 index has reached at 9,306.36 points after increment of 2.6 percent or 239 points. And it’s parallel running junior KSE – 30 index closed at 9825.9 points.

Following positive activities which caused the surge are:

  • Foreign Portfolio Investors had shown interest and buy blue chips massively.
  • Decline in cut off yields and early introduction of leverage products in the market.
  • The expectation of 50-100bps cut in State Bank’s lending rate in its upcoming (24th November, 2009) Monetary Policy Review Statement.
  • 22.3 percent reduction in July-October trade deficit and 84 percent decline in the current account deficit to $1,071 million.
  • By Increasing Oil & Gas productions, E&P sector have outperformed other sectors, and posted returns of 6.4 percent.
  • By massive cotton arrivals and improved yarn export numbers, and witnessing renewed interest (up 3.8 percent) textile sector was also dominant.
  • Stronger valuations impact in the telecom sector.

Bank Al-Falah (because of rumours and speculation of Warid and Telenor deal again attracted investor’s attention), PPTA, PTC, OGDC, Pace Pak Ltd. were 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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