Karachi Stock Exchange Weekly Analysis 23 January, 2011

In Karachi Stock Exchange (KSE), index performance was bearish and has taken a nominal correction, after the consecutive nine weeks of bullish trend. And according to experts bullish trend will be witnessed in next week, because of nice corporate results are expected especially of blue chips. The Karachi Stock Exchange (KSE) 100-share index closed at 12,432 points by gaining 102 points or 0.8 per cent.

Following news have played vital role in Karachi Stock Market index movement:
  • Upcoming corporate result season will affect KSE market positively and some nice results are expected especially of blue chips e.g. PPL, POL, PARCO, NRL, APL, Lotte Pakistan PTA, FFBL and FFC.
  • Analysts are also cautious about the coming monetary policy (arriving on 29 January), and it is expected that interest rate will rise again
  • Last week there was institutional profit taking, foreign investment has decreased and macroeconomic uncertainty has increased
  • International oil prices have decreased, the news of issuing convertible bonds of OGDC, PPL and PSO during 2011 failed to gain interest of investors, and there were also rumours about shutting down of Maramzai field because of security concerns, which has badly affect oil & Gas sector
  • Investors also have some concerns about Law and order situation, target killing and now curfew in Karachi
  • Remittances push reserves to record $17.3 billion
  • FBR tax kitty up 13% at Rs. 654 billion during 1HFY11

FFC, POL, ENGRO, PSO, PPL, and NBP were on top last week. Rafhan Maize, SAPL, Colgate Palmolive, Pace (Pak) Ltd, Azgard Nine, Pakistan Refinery, Nestle Pakistan and New Jubilee Ins were major gainers while Media Times Limited, KASB Bank, Bestway Cement, Engro Polymer and E.F.U Life Assurance, Wyeth Pak, Millat Tractors and Pak Engg 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 discrepancy in the ground realities.

Written by: Rana Khurram

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