Karachi Stock Exchange Weekly Analysis 20 November, 2011

The Karachi Stock Exchange (KSE) market activity was bearish. KSE – 100 index has reached 11,937.81 points by losing of 101.12 points or 0.83 per cent. The KSE-30 Index fall by 160.40 points, or 1.40 percent, to close at 11,222.58 points.

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

  • Investors have concerns over political uncertainty, offer of resignation of Hussain Haqani and Mullen memo controversy
  • Uncertainty in global markets on eurozone debt crisis, concerns over foreign inflow from the local bourse post-earning announcement also played a catalyst role in the bearish sentiment
  • Upcoming Monetary Policy will h shape the short term market direction, which is expected by the end of this month
  • According to dealers, panic selling cannot be ruled out in case the political noise in intensified. Because noise factor is humming and is likely to escalate in coming weeks
  • According to NCCPL (National Clearing Company of Pakistan Limited) Foreign Portfolio Investors have sold shares of worth $1.3 million
  • Furqan Ayub, an analyst at JS Research, said that foreign portfolio investment witnessed an outflow of $102.1 million in the last four months (July/October) against an inflow of $101.3 million in the corresponding period last year
  • Analyst at the KASB Securities said that the outcome of Pakistan-IMF talks and clarity on the resolution of inter-corporate debt could be a swing factor in determining market sentiments
  • Federal Cabinet has approved a four percent tariff hike in power sector
  • The analyst believes this will likely to add weight towards Pakistan’s case in obtaining a clean chit from the IMF and negotiating a $2 billion loan from the World Bank and the Asian Development Bank for power sector restructuring
  • Higher oil prices and new discoveries of oil has created interest of investors in E&P (Exploration and Production) sector
  • Fauji Fertilizer Company underperformed the market by 6.1 percent as investors feared reversal in the fertiliser price after the gas supply to the fertiliser manufacturing companies was restored
  • According to the SBP data, the non-performing loans rose by Rs38.3 billion during July/September to Rs613 billion. The pace of increase in the NPLs was much higher than in the previous two quarters

Pak Telephone, International Industries, Standard Chartered Bank, Atlas Honda and Indus Motors were the major gainers while Media Times Limited, P.I.A.C. (A), Tandlianwala Sugar, NetSol Technologies and IGI Insurance were major losers 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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