Karachi Stock Exchange Weekly Analysis 25 September, 2011

The Karachi Stock Exchange (KSE) market activity was bullish. KSE – 100 index has reached 11,606.86 points by gaining of 253.4 points or 2.2 per cent. It is the highest level achieved by KSE market during last six weeks.

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

  • Investors will closely watch next week’s news flow from Islamabad on the way it has exited the incomplete loan programme with the International Monetary Fund (IMF) to make investment decisions
  • Government of Pakistan has announced, the resolution of the notorious inter-corporate debt through the issuance of PIBs (Pakistan Investment Bonds)
  • Investors have serious concerns over Pak – US relations
  • The Karachi Stock Exchange (KSE) has chances of upside as Pakistan gears up to cut the interest rate to boost flagging economy, especially after changing the official inflation numbers
  • A high-powered official delegation led by Finance Minister Abdul Hafeez Sheikh is in Washington to hold talks with the World Bank and the International Monetary Fund (IMF) that also includes ending $11.3 billon loan arrangement
  • Immediately after the government said it no longer needed to pursue release of the remaining $3.4 billion of the loan, the government rebased the consumer price index (CPI), bringing down inflation figure and raising hope of steeper rate cut next month
  • CPI comes in at only 11.56% YoY, due to rebase effect
  • Some European Union members also face sovereign debt crisis. Greece, Italy and Spain are all under investors’ spotlight as leaders there battle to find a way of keeping the economies afloat
  • According to analysts, banks e.g. UBL, MCB, NBP could see more gains
  • Textile exports surge 13% YoY in 2MFY12
  • Cement sales up 5.7% YoY in 2MFY12

Pak Reinsurance, Indus Dyeing, Kohinoor Energy, Faysal Bank and Soneri Bank were the major gainers while Pak Telephone, Mari Gas, Bestway Cement, Gharibwal Cement and Netsol Technologies 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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