Karachi Stock Exchange Weekly Analysis Jan 31, 2010

Karachi Stock Exchange (KSE) continues to decline last week. KSE – 100 index sheds 163.40 points ( 1.67 per cent ) and closed at 9,614.19 points. While KSE – 30 index closed at 10,056.18 points after decrementing 228.08 points (2.21 per cent).
Following news played vital role in movement of Karachi Stock Exchange (KSE):

• After Supreme court decision about NRO (National Reconciliation Ordinance), News about Asif Zardari cases and resignation, Rehman Malik’s cases opened in NAB, etc. have increased political uncertainity and confusion.

• Foreign Portfolio Investors have quit and local investors have adopted on profit selling because of the selling pressure.
• Few blue chip companies have announced better results e.g.

FFC (Fauji Fertilzer Company) announce increase of 35% YoY with a PAT of PKR 8.8 Billion and EPS: PKR 13.00. It has also announced dividend of PKR 3.25 per share taking full year payout to PKR 13.15 per share.
LUCK (Lucky Cement Company) has announced profit of PKR 1,908 Million and EPS of PKR 5.90.
ENGRO has reported at PAT of PKR 3.96 Billion and EPS of PKR 13.28. and also announced 10% bonus.
PPL (Pakistan Petroleum Limited) has reported its earnings PKR 9.8 per share. And dividend of PKR 4 per share.

• Falling global equity markets and commodity prices. In International market Oil prices have decreased
• Energy crisis and shortage of water supply are also major factors affecting economy.
• Value of Pakistan Rupee has decreased at record level as compare to US$ Dollar
• Average daily turnover was reduced (esp. first four days of last week) because investors were trying to buy result specific shares.
• On Saturday evening, State Bank of Pakistan (SBP) has announced no change in its lending rates (12.5 pc), in monetary policy for next two months.

Lotte Pakistan PTA, Lucky Cement, FFC, FFBL 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