Karachi Stock Exchange Weekly Analysis 17 July, 2011

The Karachi Stock Exchange (KSE) market has witnessed a bearish trading week. The Karachi Stock Exchange (KSE) 100-share index has reached 12,346.52 points by shedding 43.60 points or 0.35 percent.

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

  • Investors have serious concerns over law and order situation in Karachi, rising fiscal deficit and withholding of $800 million military aid to Pakistan from US
  • Political turmoil and uncertainty especially between PPP and MQM, has really hurt sentiment of investors
  • Investors will remain cautious in upcoming week also
  • Fine results are expected during upcoming results season. Especially from energy, fertiliser, and banking sectors
  • ENGRO has increased prices of Urea for Rs145/bag (net increase Rs125,GST impact of Rs20), while FFC and FFBL are expected to follow suite
  • The chemical sector consequently gained 2.0 percent during the week
  • Retail and institutional interest remained limited after fall in global capital markets and commodity prices on concerns over Europe debt crises
  • SBP (State Bank of Pakistan) has released trade deficit numbers, which showed country’s deficit for FY11 at $15.6 billion. And foreign investment numbers have also declined by 8.0 percent to $1.9 billion, FDI (Foreign Direct Investment) have dropped by 27 percent to $1.6 billion
  • Banks deposits and investment up by 10% and 15.7% in 2Q11. Auto sales are also up by 4% in 2010-11
  • Pakistan fuel oil imports for June is all time high, which is nearly 850,000 ton

The Top-5 scrips at the futures counter, constituting 74 percent of the total open interest were POL followed by Engro, LUCK, FFC and FFBL. Unilever Pakistan Foods, Unilever Pakistan Ltd., Fauji Fertilizer Bin Qasim, Fauji Fertilizer, Arif Habib Corporation were the major gainers while Gharibwal Cement, Pace (Pak) Ltd, P.T.C.L., Indus Motors and Engro Corporation 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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