Karachi Stock Exchange Weekly Analysis 18 December, 2011

The Karachi Stock Exchange (KSE) market activity was bearish. KSE – 100 index has reached the lowest value since last 16 weeks, 11,028.14 points by losing of 436.39 points or 3.80 per cent. And KSE – 30 index has reached 10,154.14 points by gaining of 500.34 points or 4.69 per cent. According to experts, KSE Stock market will remain under pressure of foreign selling but consolidate around 11,000 points next week. Uncertain Pak-US relations, rising political uncertainty and foreign selling at local bourse have played a catalyst role in negative sentiment at KSE.

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

  • Ayub said that Chief of the Army Staff General Kiyani’s statement on memo issue, terming it a reality and the absence of President Zardari from the country for medical reasons added misery to the gloomy politics and weak sentiments at the KSE
  • Value of Rupee against dollar is continuously declining, and inflation at around 12 percent causing the foreign portfolio investors to exit
  • According to the National Clearing Company of Pakistan, foreigners sold net shares worth $11.24 million at the local bourses last week
  • Foreign Portfolio investors have offloaded shares of Engro Corporation and MCB Bank, and they have bough Oil and Gas Development Company shares last week
  • Khurram Schezad, head of research at InvestCap, said that the Christmas holidays in the West might have provoked foreigners to quit from the Karachi bourse, as they did not want to carry heavy-risk during the holidays on memo issue and Pakistan-US relationship
  • The market capitalisation declined by Rs120 billion last week and stood at Rs2,862 billion. The average daily volume slightly enhanced to 44.3 million shares from 44.1 million shares last week
  • Furqan Ayub, an analyst at JS Research, reported that Pakistan Petroleum Limited and Pakistan Oilfields outperformed the market by three percent and one percent, respectively, on the expectations of production enhancements
  • Uncertainty on gas-related issues resulted in Engro Corporation and Fauji Fertilizer Bin Qasim to underperform the market by 10 percent and 11 percent, respectively
  • Auto sales up 19.6%YoY in 5MFY12
  • For auto-manufacturers, the week was a fore-bearer of increased regulatory risk ahead as the government imposed a ban on the import of CNG kits and cylinders
  • Trade deficit up 27% MoM to US$2.2bn in Nov‐11
  • US House‐Senate panel proposes conditions on US$700mn Pakistan aid
  • Remittances decline by 9% MoM in Nov‐11 at US$925mn
  • Forex reserves rise nominally to US$16.69bn
  • Refinery sales rise 10%MoM in Nov-11
  • Cement dispatches down 6.47%YoY in Nov-11

Feroze1888 Mills, Al‐Ghazi Tractors, Shifa Int Hospitals Ltd, Colgate Palmolive and Pak Cables were the major gainers while Pace (Pak) Ltd, TRG Pakistan, Fauji Fertilizer Bin Qasim, Engro Corporation and Silkbank Limited 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

No comments:

Post a Comment