Karachi Stock Exchange Weekly Analysis 22 March, 2010

Karachi Stock Exchange (KSE) is succeeded to retain psychological level of 10,000 points. KSE – 100 index had closed at 10,000.93 points by the decrement of 25.06 points or 0.25 percent. While KSE – 30 index had closed at 10,313.27 points by the decrement of 134.91 points or 1.29 percent.

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

  • Foreign Portfolio Investors have invested a huge volume ($25 Million) during the week
  • Foreign investments were mainly on Cement (e.g. Lucky cement, DG Cement), Fertilizer (Fauji fertilizer), etc.
  • Urea prices have increased up to Rs. 30 per bag
  • Dr. Hafeez Sheikh has been appointed as Financial Advisor of PM
  • POL’s discovery at Beta-I of 54bpd and 2.13 mmcfd
  • The fifth tranche ($1.2 Billion) of IMF is releasing shortly (31 March)

Local investors are very careful and cautious, and have opted profit selling, because of following factors:

  • Offshore well Shark-I of Pak Petroleum, has declared dry

  • Terrorist activities throughout the country

  • Rising Circular debt in energy sector

  • Lack of electricity, water and gas are adversely and continuously affecting country’s economy and various industries e.g. Textile, Agriculture etc. And there are rumours that government is planning to increase electricity tariff further

  • In next monetary policy a very limited cut in discount rate is expected

NML, Lucky Cement, Lotte Pakistan, Lafarge Pakistan, OGDC, NBP, Bank Al – Falah, DGKC, PTC, TRG, SNGP, and SSGC 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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