Karachi Stock Exchange Weekly Analysis 6 February, 2011

In Karachi Stock Exchange (KSE), index performance was bearish, because investors have some concerns over rising circular debt in the energy sector. But according to experts bullish trend will be witnessed in next week because leverage product, expected to be launched. The Karachi Stock Exchange (KSE) 100-share index closed at 12,415.35 points by shedding 47.35 points or 0.37 percent.

Following news have played vital role in Karachi Stock Market index movement:

  • Local investors are cautious and have some concerns over rising circular debt in oil and gas sector and they have opted to offload their holdings
  • After Tunisia, Egyptian crisis have also disappoint investors and badly affect global markets
  • As result season is on its peak, next week few nice results are also expected e.g. MCB, ABL, EPCL and PSO
  • SBP (State Bank of Pakistan) has announced monetary policy and keep the policy rate intact at 14 percent
  • Rising fiscal deficit and apprehensions regarding tariff rationalisation in oil and gas sector also had a negative impact on investor sentiment
  • Possible reduction in deemed duty of HSD (High Speed Diesel) from the current 7.5 percent, has made refineries price performance under pressure
  • IMF (International Monetary Fund) has imposed more conditions for further release of next tranche of $11.3 billion
  • MTS (Margin Trading System) is expected to be launched by 21 Feb, 2011. Which will improve volumes in the near future
  • ADB (Asian Development Bank) will invest $242 million in power sector of Pakistan
  • Sabic has refused $100 million facility for urea import
  • Government of Pakistan to issue convertible bond within 60 days

POL, ENGRO, PSO, MCB, and NBP are top five future scrips. Sui Southern Gas, Clariant Pak, P.I.A, Lotte Pak PTA and Netsol technologies were major gainers while Pak Telephone, Media Times Ltd., Pakistan Refinery, Attock Refinery and National Refinery 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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