Karachi Stock Exchange Weekly Analysis December 06, 2009

As the sequel of previous week’s decline of Karachi Stock Exchange, this week’s trend was also bearish. The KSE 100 - index sheds 197.08 points or 2.14 percent and closed at 9,009.13 points, KSE 30 - Index decreases at 2.49 percent or 242.35 points and closed at 9,464.13 points.

Following important factors have caused market decline:

  • Debt debacle that emerged in Dubai last week shook the financial markets globally
  • Foreign Portfolio Investors were major net sellers and offloaded shares worth $5.3 million
  • Security concerns, terrorists activities, bomb blasts throughout the week, grim law and order situation have hurt the sentiments of investors
  • Uncertainty and Political turmoil, due to NRO and other issues
  • Local Investors are very cautious for buying, especially in Banking and Telecom sectors
  • Fall in International oil prices and investors’ concerns over circular debt issue affecting oil refineries cash flows
  • High government borrowing, growing liabilities’ ($55 billion), reservations regarding achieving revenue and export targets and likely rising trend in inflationary pressures
  • uncertainty over future commodity prices, high leverage cost

There is no positive trigger in this month; investors are very careful and cautious in buying. In next week (from 7 Dec, 2009), Supreme Court will start to hear cases related to NRO, which is also against government. So market may remain dull and volatile. BOP, Silk bank, Bank Al-Falah, OGDC, Pak Refinery, JOVC, PASL were major performers of 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

No comments:

Post a Comment