Karachi Stock Exchange Weekly Analysis 28 March, 2010

Although last week was very short (four working days), but Karachi Stock Exchange (KSE) is succeeded to retain psychological level of 10,000 points. KSE – 100 index had closed at 10,137.93 points by the decrement of 137 points or 1.36 percent. While KSE – 30 index had closed at 10,442.92 points by the decrement of 129.65 points or 1.52 percent.

Following news have played a vital role in progress of Karachi Stock Exchange (KSE):
  • Foreign Portfolio Investors have invested a huge volume especially in Oil and Gas Sector (e.g. OGDC, POL etc)
  • Government has also announced Inland freight subsidy (up to 35%) on exports of cement, which attracted local investors in Cement sector e.g. DGKC, LUCK
  • After the strategic dialogue between Pakistan and US, US has announced $125 million for power sector of Pakistan. And assured Pakistan for the disbursement of CSF worth $2 Billion
  • Local investors are switching their positions in Banking sector from NBP to MCB, UBL
  • Price of dollar has reached Rs. 83.79
  • State Bank of Pakistan has provided mark-up rate facility to textile sector
Local investors are very careful and cautious, and have opted profit selling, because of following factors:
  • Government is planning to increase domestic oil prices and power tariffs
  • 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.
  • Rift amongst political parties regarding constitutional reforms

Lotte Pakistan, Lafarge Pakistan, JS Companies, DGKC were the volume leaders, Pakistan Refinery, Fauji Cement, Bestway Cement, PNSC and Sui South were major gainers while KASB Bank, Bannu Woollen, Askari Bank, GlaxoSmithKline and IGI Insurance were major losers at KSE this 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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