Karachi Stock Exchange Weekly Analysis 30 October, 2011

The Karachi Stock Exchange (KSE) market activity range bound but succeeded to close in green zone. Past week comprises of three consecutive bearish sessions and one extraordinary bullish session which manages to close the index where it began. KSE – 100 index has reached 11,561.57 points by gaining of 36.42 points or 0.31 per cent. The KSE 30-share index fell by 6.90 points, or 0.06 percent, to 10,895.09.

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

  • The Karachi Stock Exchange (KSE) is expected to make some gains during the next week owing to the availability of shares at attractive price, traders said on Saturday
  • European leaders and banks have reached a deal to tackle euro zone debt crisis and institutional accumulation in commodity stocks, which creates a bullish trend in global markets
  • Political uncertainty kept investors cautious and strained US-Pak relations coupled with the hawkish attitude of the opposition parties had initially overshadowed the healthy corporate results and positive sector news flow as investors booked profits throughout the week,” said JS Sec analyst Furqan Ayub
  • According to National Clearing Company of Pakistan, Foreigners offloaded shares worth $7.9 million
  • Cement sales have increased as compared to last year, up by 8.2% in 1QFY12
  • State Bank also issued a circular relaxing the forced sale provision criteria for banks which is expected to have a positive impact on the sector’s earnings
  • Bullish activity was witnessed in an oversold market led by oil and fertilizer stocks on strong valuations and record earning announcements this week, said Arif Habib Investment Ltd Director Ahsan Mehanti
  • Major earning announcements next week played a catalyst role in the positive sentiment at KSE despite concerns over rising political uncertainty and US call for unequivocal actions against militants
  • With blue chips such as Fauji Fertilizer Company (FFC), Engro Corporation and Pakistan State Oil (PSO) to announce their results next week
  • The average weekly turnover fell by 14.3 percent to 75.3 million shares. The overall market capitalisation increased by three billion rupees to Rs3,021 billion
  • Both PPL and OGDC posted strong earning growth of 27 percent and 31 percent, respectively, in July-September 2011 quarter with OGDC surprising the market with 10 percent above-consensus earning per share
  • SECP approves 43 securities for short selling
  • ADB provides USD36mn for wind power
  • Foods export surge 38% in 3M
  • Petrol prices likely to fall by 5%

Standard Chartered Bank, Soneri Bank, Oil & Gas Development Co., Fatima Fertilizer Co Ltd and Indus Motors were the major gainers while Pace (Pak) Ltd, Ghani Glass, Colgate Palmolive, Shifa Int Hospitals Ltd 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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