Karachi Stock Exchange Weekly Analysis 8 August, 2010

Karachi Stock Exchange (KSE) has shown dull and lacklustre performance and bearish trend was witnessed throughout the week. The Karachi Stock Exchange (KSE) 100-share index closed at 10,315.20 points by shedding of 203.82 points or 1.93 percent. While Karachi Stock Exchange (KSE) 30-share index closed at 10,244.91 points by shedding of 238.45 points or 2.27 percent.

Following news have played vital role in Karachi Stock Exchange (KSE) index movement:
  • As the corporate result season has arrived, with the implementation of margin trading system will recover the market
  • Some nice results are also expected in upcoming week e.g. OGDC, HUBCO, Lucky Cement, and ABL
  • Rise in International Crude Oil Prices and reaches $81 per barrel
  • Because of flood and weather conditions, and crisis in Lucky Cement Factory cement production and demands are affected. But because of flood reconstruction of affected areas is required, approval of Bhasha Dam, Export demands etc. cement demands will increase in country
  • Foreign Portfolio Investors have bought shares of worth $15 million during last week
Beside these positive news, there are some reasons for which we recommend investors to be careful
  • Increase in rate to 13 percent in Monetary Policy of SBP, have really hurt the sentiments of investors
  • Below then expected results have been announced e.g. PSO, HBL, MCB etc.
  • Target killing, Political disturbance, law and order situation and Flood in different parts of country has adversely affected the economy of country
  • Production from certain fields of Oil and Gas has been suspended due to flood
OGDC, ENGRO, POL, MCB, and PPL were on top, Rafhan Maize, Pakistan Telephone, Pakistan Services, International Industries and Engro Polymer were major gainers while Gharibwal Cement, Jahangir Siddiqui & Co., Bestway Cement, KASB Bank and WorldCall Telecom 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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