Karachi Stock Exchange Weekly Analysis 21 Feb, 2010

During this result season Karachi Stock Exchange (KSE) has started in negative note, because of disputed decision of government regarding judges’ appointment. But when Prime Minister Syed Yousaf Raza Gilani has taken U-turn in the issue of appointing short-lived judges, resolved the disputing issue between government and judiciary.

Then market takes upward drive during the whole week, and crossed the psychological level of 9,900 points. The KSE 100 share index has closed on 9,902.62 by the increment of 96.75 points or one per cent, while KSE 30 index has closed on 10,295.24 points by the increment of 120.32 points or 1.18 per cent.

Following important news have played vital role during Karachi Stock Exchange (KSE) index movements:

  • The disputed decision of short-lived judges appointment has been resolved, now issues between judiciary and government are settled

  • IMF (in a press release on Wednesday) expressed satisfaction in Pakistan’s macro performance

  • International oil prices (crude oil) have increased (up to $78 per barrel)

  • Foreign portfolio investors have invested huge amounts( around $7 million) in Oil & Gas, Banks and other sectors, during the week

  • In next week number of companies (Gas distribution, Banks, Insurance, Autos and Cement) are scheduled to announce corporate results for December 2009 quarter. Including some blue chips e.g. OGDC, MCB and HUBCO

  • NML, DGKC, PSO and HBL, MARI, ICI, BATA, KAPCO, ABL, IGIIL etc. has announced their results in last week

The result season and above news are very positive, analysts have expected KSE 100 index could achieve 10,000 points psychological target in upcoming days, if positive activities will remain continues. Beside all these positive activities, there are also some threats exists, e.g.

  • Federal Board of Revenue (FBR) is imposing 10 per cent CGT (Capital Gain Tax), from 1st July, 2010. And also not withdrawing withholding tax on securities transitions
  • Domestic Politics (elections) and two major religious sects are scheduled to observe religious events. This may cause security concerns and can effect investor’s activities

Arif Habib Securities, LOTTE Pakistan, TRG, Bank of Pujab, Jahangir Siddiqui, 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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