Karachi Stock Exchange Weekly Analysis December 19, 2009

As was predicted and expected, Karachi Stock Market has revived and bullish trend continues. Especially at the start of last week (Monday 14 Dec, 2009) market has recovered three percent and 243 points and closed at 9,280 points. But in other days of week, market move was mixed and varied. Some local investors had adopted profit selling because of some negative news e.g.

  • Suicidal blasts e.g. D.G Khan and other parts of country has created a chaos
  • Political turmoil has been created after Supreme Court decision about NRO
  • USD $ has reached highest value in the history i.e. 84.47 PKR

After these activities KSE – 100 index closed at 9,183.73 points after the increment of 143.43 points or 1.62 per cent and KSE – 30 index was closed at 9,652.90 after the increment of 156.80 points or 1.65 per cent.

There was also some positive news which has ignited market index e.g.

  • Abu Dhabi provides Dubai $10 billion in bailout money
  • CJ has declared NRO null and void
  • Foreign investors have invested in Banking sector massively
  • In next week positive reports/results are expected
  • Consensus of all four provinces on NFC award
  • Approval of Austerity plan
  • $1.46 billion aid for Pakistan has been approved by US Congress
  • Improved trade and current account deficits
  • Turnaround in the LSM (Large Scale Manufacturing) growth
  • Huge remittances have been sent by overseas Pakistanis.

Some analysts and investors have stated that if government fails to control over suicidal attacks and political instability increases (because of NRO and other issues), then market index may be dull, volatile and lacklustre. There are also upcoming holidays of Christmas, Ashura, year ending etc. which can effect market movement. On the other side there are so many positive news (as mentioned above) which can trigger market to upside moves. We recommend all investors to be careful in any investment.

BAFL, BOP, JSCL, NML, PTC, PACE and AHSL 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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