Karachi Stock Market Weekly Analysis Jan 17, 2010

KSE index is in positive progress and incrementing by leaps and bounds. Last week KSE – 100 index has crossed psychological levels of 9,800, 9,900 and closed at 9,923.14 points after the increment of 146.93 points or 1.50 per cent. And KSE – 30 index has reached at 10,491.54 points after incrementing 202.27 points or 1.96 per cent. Remember this is the highest level achieved by Karachi Stock Exchange during last 16 months.

According to experts, if these positive development continues then market will cross 10,000 benchmark in upcoming week.

Following positive news have played a catalytic role in progress of KSE (Karachi Stock Exchange):

  • Expectations of 50-100 bpd cut in discount rates, in Jan 30 monetary policy
  • Interest of Foreign Portfolio Investors in blue chip e.g. Bank, Oil & Gas, Cement, Telecom, Fertilizer etc.
  • An overwhelming response (oversubscribed 4 times) from investors for Fatima Fertilizers Book Building, has also created a positive impact for other Fertilizer scrips.
  • Positive results and earnings are expected in upcoming results (especially Banks, Fertilizers, Oil & Gas).
  • Furnace Oil consumption have increased.
  • OGDC has signed an agreement with Nawab Mir Ali, to restart exploration in Uch field.
  • PPL has announced offshore drilling, which has grasped the interest of investors in E&P.
  • International Oil prices are increasing continuously ($83 per barrel), but recommendations of judicial commission regarding Oil prices have heart the sentiments of investors.
  • Political turmoil, uncertainty, Law and order situation of Pakistan (especially in Karachi) has settled down up to some extent, after the clarification on relationships of coalition partners (PPP and MQM) in Sindh.
  • Cement prices have increased up to Rs. 10 – 20 per 50 kg bag.

Fauji Fertilizer Bin Qasim, NCL, NML, PPL, Bank Al Falah, PTC 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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