Karachi Stock Exchange Weekly Analysis November 30, 2009

As compare to last week’s, local equity market has posted a meager increase, remained dull and range-bound. The average daily volumes were 79.47 million shares, which is the lowest in last 37 weeks. KSE-100 index closed at 9203.72 points and KSE-30 index at 9694.58.

Following factors plays vital role in last weeks decline:

  • On account of Political uncertainty
  • Fewer working days, holidays because of Eid.
  • Net inflow of Foreign Portfolio Investors was just $1.3 million, while it was $17.8 million last week.
  • SBP in Monetary Policy Statement (24 November, 2009) announced 50bps cut in discount rate, which was beyond the expectations of investors.
  • Release of list of NRO beneficiaries including president, has created political turmoil.
  • Rumours of poor decision regarding HUBCO’s withholding tax case, and some other factors caused E&P and Power sectors decline.
  • Fall in International oil prices
  • Because of Eid holiday, there was intense selling pressure.
  • Foreign Investors had solid OGDC, PSO, MCB, NBP, PTCL, Adamjee Insurance, and Attock Refinery massively,

According to analysts, there is no positive trigger in near future which can ignite the market. So, market may remain lacklustre and volatile. There was news of possible NPL recovery from a major defaulter of Bank of Punjab, which causes BOP shares on top during the week. Along with Banks and OMC sectors, Fertilizer has also fared better because of better Urea and DAP off take. While despite the news of likely reduction in PSDP allocation, the leading stocks of the cement sector did stage snap rallies during the session

BOP, PPTA, OGDC, Bank Al-Falah, Nishat (Chunian) 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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