Karachi Stock Market Weekly Analysis Dec 26, 2009

Karachi Stock Exchange – 100 index has crossed psychological level of 9,400 points last week. KSE – 100 Index has closed at 9,422.23 points by increment of 238.50 points at the rate of 2.59 per cent, and its parallel running junior KSE -30 has closed at 9,903.13 points by increment of 250.23 points at the rate of 2.59 per cent. Remember this is highest level achieved during last two months. The bullish trend is also expected in upcoming week.

Following positive news have triggered market:

  • Financial results announcement season has arrived, and positive results/reports are expected.
  • Political uncertainty, instability and volatility have getting settled, which was increased after CJ decision of NRO. PML (N) has withdrawn their demands of resignation from Asif Zardari.
  • IMF has approved the release of fourth tranche ($1.2 billion of its total $11.3 billion) of its standby loan to Pakistan.
  • Heavy buying was witnessed in Energy, Banking, Fertilizer and Cement sectors e.g. OGDC, PTC, NBP, FFC, DGKC, and Adamjee Insurance
  • OGDC, British Petroleum and MOL have got permission for seismic survey at six places.
  • International Oil prices have increased, so investors have opted to take decent positions in E&P sector.
  • There are news circulating related to BOP, that Harris Steel Mills has to recover 7.5 billion rupees loan.
  • Textile sector is also doing well, because there is much better cotton crop yield this season.
  • Adamjee Insurance and NML are getting into an agreement, to acquire AES Lalipur and AES Pak Gen Power.
  • A good news for Cement sector is that, China has sanctioned a grant of $700 million grant for the construction of 32 small dams on different parts of country.
  • Nice investments have recorded by NCCPL from Foreign Portfolio Investors in blue chips.
  • SPI declines by 0.26% WoW.

Along with these positive news, there are also some negative news which have adversely affect market e.g.:

  • By January, 2010 electricity tariff are getting increased up to 13.6 per cent and Gas up to 18 per cent.
  • Load shedding of Gas has also been started.
  • Terrorist activities throughout the country.
  • Government (Ministry) has not finalized ex-refinery pricing formula, because of the failure of consensus.
  • State Bank has declared that NPL (Non Performing Loans) of Banks and DFI’s have surged to a new peak level of Rs.435 Billion.

OGDC, NCL, PTC, NBP, BOP, FABL, BOK, FFC, DGKC, and Adamjee Insurance, AH Securities 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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