Karachi Stock Exchange Weekly Analysis 16 October, 2011

The Karachi Stock Exchange (KSE) market activity was bullish consecutively for the fifth week. KSE – 100 index has reached 11,988.09 points by gaining of 134.25 points or 1.13 per cent. According to analysts KSE market is likely to cross the psychological level of 12,000 points in next week, if nothing big unexpected happen on the economic and political fronts.

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

  • Nice results are expected especially from Banking, Energy and Telecom sectors. Which will definitely drive the KSE market in positive direction
  • After the major cut down of discount rates, market is already entered in green zone. It caused the average volumes to improve by 66 percent to 125 million shares during the week
  • Important results from blue chips e.g. Pakistan Oilfields Limited (POL), Attock Petroleum Limited (APL), Attock Refinery Limited, Habib Bank Limited (HBL) and Pakistan Telecommunication Company Limited (PTCL) etc. are scheduled in next week
  • According to JS Research forecasts, HBL may report an increase of 28 percent in its profits to Rs12.67 per share for January-September period
  • APL profits are likely to rise by 27 percent on yearly basis to Rs16.1 per share in the July-September quarter
  • A local brokerage house said the market would be watchful of movements in the foreign portfolio investment numbers. Foreign investment has been withdrawn over the past few weeks. Progress on Pak-US relations will be important for the market, it said
  • Increase in fertiliser prices caused a rally in Fatima Fertilizer, Fauji Fertilizer Company and Fauji Fertilizer Bin Qasim. These three outperformed the market by 14.8 percent, 8.8 percent and 4.2 percent, respectively
  • APL also outperformed the market by 11.6 percent as investors expected strong financial results of Attock group companies
  • High cement prices also prompted Lucky Cement to outperform the market by 7.1 percent
  • Banking stocks such as United Bank and National Bank underperformed the market by six percent and 8.3 percent, respectively, due to a decline in banking spreads after the cut in the discount rate

Arif Habib Corporation, Fatima Fertilizer Company Ltd, Attock Petroleum Limited, Nishat Mills and Fauji Fertilizer were the major gainers while National Bank of Pakistan, TRG Pakistan, NIB Bank, Agritech Limited and Pak Services 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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