Karachi Stock Market Weekly Analysis Jan 24, 2010

Karachi Stock Exchange (KSE) was very volatile and lacklustre during last week. Although KSE – 100 index has reached up to 10,000 points, but was unable to sustain this level for long. KSE – 100 index has closed at 9,777.59 points after the decrement of 145.55 points or 1.47 per cent. While KSE – 30 index has closed at 10,284.26 points after decrement of 207.28 points or 1.98 per cent.
Following news had played vital role during Karachi Stock Exchange Index:

  • Political turmoil and uncertainty has increased, after the detailed decision on NRO (National Reconciliation Ordinance)
  • Local investors have opted profit taking, because of selling pressure to save their investments in major sectors e.g. Banks, Oil & Gas, Fertilizer, Cement, Telecom etc.
  • Finance minister has declared that CGT will be imposed to equity market.
  • Confusion and uncertainties regarding Capital gain tax.
  • Power tariffs are expected to be increased by 24 per cent.
  • Terrorist activities, strikes, law and order situation etc. in Karachi and throughout the country.
  • Falling global equity markets and commodity prices. In International market Oil prices have decreased and reached at $78 per barrel.
  • Refineries may reject proposed Oil pricing formula devised by a committee on Oil Pricing.
  • OGDC has delayed compressor installation at Qadirpur, which has decreased the Gas productions.
  • Bank Islami has proposed a merger with Emirates Global Bank.

There were some positive news which has ignited market and helped to achieve benchmark of 10,000 points.

  • Anticipation of positive results season.
  • Good news for Fertilizer sectors (which made this sector up by 0.2 per cent) are: Prices of DAP has increased up to Rs. 2,200 per 50 kg bag (by the increment of Rs. 290 per 50 kg bag). Expectation of two strong Fertilizer results in next week. Fatima Fertilizer has started trading in open market.
  • Agreement of PSO (Pakistan State Oil) and Wall Street exchange, regarding its efforts to end circular debt in energy sector, PSO is getting Rs. 9 Billion from Ministry of Finance.
  • Lotte Pakistan has decided to invest $800 million in Pakistan.
  • Telecom sector was also on positive side (increased by 19 per cent) because of the news of reduction of mobile termination rates.
  • Strong results are expected in next week e.g. PPL, LUCK, two fertilizer giants etc.

LOTPTA, JSCL, TRG, BAFL, FFBL, PTC, ANL 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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