Karachi Stock Exchange Weekly Analysis 11 December, 2011

The Karachi Stock Exchange (KSE) market activity is increasing its momentum and succeeded to close in green zone. KSE – 100 index has reached 11,392.57 points by gaining of 92.40 points or 0.81 per cent. And KSE – 30 index has reached 10,650.48 points by gaining of 59.66 points or 0.56 per cent. According to experts, KSE Stock market will keep range bound next week, with stock specific activities in Fertilizer, energy and banking sector, but foreigners might continue to exit from the market. History of KSE (Karachi Stock Exchange) is showing that Karachi Stock Market use to perform well during the month of December. The average daily turnover improved by 18 percent to 44 million shares from 37 million traded in the previous week. The market capitalisation increased by Rs21 billion to Rs2,982 billion.

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

  • Political uncertainty was witnessed by the Asif Ali Zardari’s sudden trip to dubai
  • Investors have concerns about the issue of gas curtailment to fertilizer sector. If gas remains suspended the urea prices will definitely increased
  • FPI (Foreign Portfolio Investors) are continuously offloading their investments from Karachi Stock Market, which is adversely affected the performance of the Karachi Stock Exchange
  • According to the National Clearing Company of Pakistan, net sale by foreign portfolio investors stood at $4.84 million at local bourses last week. During the week, they bought shares worth $5.65 million and sold shares worth $10.49 million
  • CGT (Capital Gain Tax) collection rules and issues of minimum paid up capital requirement for brokerage houses have made investors nervous
  • US Dollar has reached its highest price and is trading on Rs. 89.10
  • Pakistan’s foreign exchange reserves have been declined to $16.68 billion
  • Cotton production rise 15.5% YoY till date
  • Refineries plan USD9.9bn investment in near future
  • Domestic debt rises to Rs6.234tr till Oct-11
Packages Limited, NIB Bank, Pace (Pak) Ltd, Al‐Ghazi Tractors and Shifa Int Hospitals Ltd were the major gainers while Engro Corporation, Jahangir Siddiqui & Co, Silkbank Limited, Tri‐Pack Films and Dawood Hercules were major losers in the benchmark KSE‐100 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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