Karachi Stock Exchange Weekly Review Oct 31, 2009

In the results season, beside strong corporate results along with continuous offshore investment, the visit of Hillary Clinton and talks of increased economic, infrastructural and military assistance. A bearish trend was witnessed in KSE throughout the last week. KSE 100 – index closed at 9,159.18 points and KSE 30 – index closed at 9,662.87 points. The week was started positively and gained 224 points on Monday, but after bomb blast at Peshawar and other terrorist’s attacks throughout the country, have lead investors in panic and confused state. Local investors have preferred selling and profit taking instead of buying because of security concerns, worsening law and order situation of the country.

Following are major reasons for the downfall of market:

  • Heavy bomb blasts (e.g. Peshawar) and other high profile terrorist’s attacks throughout the country
  • Military operation in Wazirstan
  • Local investors opted to offload their holdings, and were major sellers because of security concerns
  • Market remained volatile on a flurry of industry/company specific news
  • Political contradictions in NRO, and the presence of on-going political uncertainty
  • Rumours of foreign selling in MCB

In the last week’s results AICL posted positive results and showed profit of 19.6 percent, ABL also posted 15.3 percent gain. DGKC, Lucky, HBL, AKBL have posted better than expecting earnings. While the results of OGDC, HUBC, PTC and NML were in the line with market expectations.

E&P sector, especially Pakistan Oilfields (POL) would gain advantage, because there is news, that gas production from phase II development project on the Manzalai field in the Tal Block.

According to analysts, in future (e.g. next week), market may remain volatile, because investors are very reluctant in long term investment, and they are interest in selling and profit taking nowadays.

Pak PTA, Jahangir Siddiqui Company, Arif Habib Securities, NIB Bank, Bank Al-Falah, Fauji Fertilizer Bin Qasim, PTCL and TRG were the volume leaders last week.

Among the top gainers, Unilever Foods and Dreamworld leading, up by Rs30 and Rs26.98 followed by Adamjee Insurance, EFU Life, IGI, Lakson Tobacco, PECO, HinoPak, Atlas Battery, Excise Battery, Siemens Pakistan, Shezan International, Service Industries, Clariant Pakistan and Colgate Pakistan, which posted fresh gains ranging from Rs5.50 to Rs15.92.

1 comment:

  1. We, all overseas Pakistanis are crying to invest money in Pakistan especially the stock market. The only thing we want is security. I know some Billionaires drooling to start afresh in a semi-developed country. The only thing we all want is security, specially from the Government, the biggest thief is our Government. Here in Kuwait, Pakistani imports are declining everyday due low quality and higher prices.