Karachi Stock Exchange Weekly Analysis 13 June, 2010

Karachi Stock Exchange (KSE) is continuously under pressure, facing a bearish trend. The Karachi Stock Exchange (KSE) 100-share index closed at 9,471.12 points by decreasing 166 points or 1.7 percent.

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

  • Investor’s concerns and confusion in implementation of CGT (Capital Gain Tax) and lack of investment/liquidity

  • Limited institutional interest, and profit taking (on declining oil prices) by institutions

  • local investors are not interested in long term investments

  • Selling pressure from Foreign Portfolio Investors

  • Delay in implementation of Margin Financing Product

  • There is still no official announcement regarding resolution of circular debt issue in Pakistan’s Energy sector

  • Reformed GST (General Sales Tax) i.e. VAT (Value Added Tax) is supposed to implement from 1st October, 2010. And IMF has concerns about delaying implementation of VAT

  • Political turmoil, Target killing, Law & Order situation in country

OGDC, BAFL, POL, ENGRO, DGKC, Lotte Pakistan and BOP were volume leaders. Banks, Fertilizers and Cement (DGKC, LUCKY) have outperformed while Telecom, Oil & Gas were underperformers. Pakistan Telephone, Unilever Pakistan Foods, Rafhan Maize, Gharibwal Cement and KESC were major gainers while Bestway Cement, KASB Bank, Siemens Engineering, Al-Ghazi Tractor, Faysal Bank were major losers at KSE last week

NOTE: The information posted in this blog (forum) is based on current afairs & invstors point of view. There may be discrepancy in the ground realities.

Written by: Rana Khurram

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