Karachi Stock Exchange Weekly Analysis 28 Feb, 2010

Resignation of Finance Minister (Shaukat Tarin), imposition of CGT (Capital Gain Tax), significant rise in T-Bill yields, and continuous selling from Foreign Portfolio investors have kept index of Karachi Stock Exchange (KSE) in red zone and bear-run continued throughout the week. KSE – 100 index was closed 9657.79 points while KSE – 30 index was closed at 10061.00 points. These are the lowest figures during last two months.

Following news have played vital role in Karachi Stock Exchange (KSE) index movement:

  • Finance Minister, Shaukat Tarin has resigned from his post
  • 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
  • Terrorist activities, political turmoil, law and order situation throughout the country
  • Significant rise in T-Bill yields (20-27 bps) and rising trend in International commodity prices
  • Selling pressure was witnessed from Foreign along with local investors
  • Rising circular debt in the oil and gas sector and fall in international oil prices
  • Instability in exchange rates
  • Investors have opted profit taking in this result announcement session, especially for the blue chips, who announced their results last week e.g. OGDCL, MCB, HBL, HUBCO etc.
  • Dealers/investors are also worried about next finance minister
  • Qadirpur wellhead prices up by 7%
  • DAP offtake up by 10%
  • Cabinet approves future trading bill

Jahangir Siddiqui & Co, WorldCall Telecom, NBP, Arif Habib Securities, Lotte Pakistan PTA were the volume leaders and NBP, Millat tractors, Bannu woollen, HUBCO, Nestle Pakistan were major gainers 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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