Karachi Stock Exchange Weekly Analysis 27 March, 2011

The Karachi Stock Exchange (KSE) market trend was bearish during last week because of foreign selling. The Karachi Stock Exchange (KSE) 100-share index has reached 11,552.13 points by losing 54.48 points or 0.46 percent. The Karachi Stock Exchange (KSE) market closed on red zone for the second consecutive week.

Following news have played vital role in Karachi Stock Market index movement:
  • Huge foreign selling of $16.4 million last week
  • Terrorist activities, target killing law and order situation especially in Karachi has really hurt the sentiments of investors
  • SBP (State Bank of Pakistan) has announced monetary policy for the next two months with interest rate at 14 percent
  • Political turmoil and uncertainty, give strained relations between PPP (Pakistan Peoples Party)and MQM (Mutahida Qaumi Movement) has badly affected the sentiments of investors
  • Because of disaster impact in Japan, Asian markets remained under pressure
  • The banking sector remained under pressure throughout the week as data released by the State Bank revealed non-performing loans (NPLs) of all banks rising most in two years, increasing by Rupees 54 billion in the final quarter (October to December) to reach Rs 548 billion
  • Oil and Gas stocks have witnessed little correction by losing 1.3 percent last week
  • Cement prices have increased (Rs. 20 per bag) post hike in taxes, and cement sector rose up to 1.2 percent
  • Almost more than 200 textile investors have shifted their investment of worth 100 Billion from Pakistan to Bangladesh, Sri lanka etc. in last six months because of energy, political and other crisis in Pakistan
  • Despite having such a terrible disaster, Japan government has decided not to stop aid for Pakistan
  • Oil prices are expected to increase, which is likely to hit inflation
Sui Southern Gas, Javedan Cement, Dawood Hercules, Bestway Cement, Siemens Engineering, were the major gainers while Bank Of Punjab., Shifa Int Hospitals Ltd, Standard Chartered Bank, Adamjee Insurance, Pak Telephone 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.

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