Karachi Stock Exchange Weekly Analysis 25 December, 2011

The Karachi Stock Exchange (KSE) market activity was bullish. KSE – 100 index has reached 11,301.09 points by gaining of 272.95 points or 2.47 per cent. While KSE – 30 index has increased by 164.27 points or 1.61 percent and reached to 10,318.41 points. The increase was attributed mainly to strong rumours about relaxation of rules for Capital Gains Tax (CGT) at KSE.

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

  • Domestic politics have been eased after the arrival of Asif Ali Zardari
  • According to experts, KSE (Karachi Stock Exchange) will remain under pressure in upcoming week, because of the tensions created in political front by the memo case in supreme court
  • Investors are attracted because of strong annual results (particularly by fertilizer and banking sector) expectations
  • Net sale by foreigners stood at $8.9 million last week, showed official data
  • The average daily turnover increased by 1.4 percent to 45 million shares from 44 million in the previous week. The market capitalisation surged by Rs68 billion to Rs2,930 billion
  • Fatima Fertilizer and Fauji Fertilizer Bin Qasim outperformed the market by six percent and two percent, respectively, while both Fauji Fertilizer Company and Engro Corporation unperformed by one percent
  • State Bank of Pakistan (SBP) expects the economy to grow in the range of 3-4 percent in FY12. The reason highlighted by SBP for the expected underperformance is its bleak outlook on the agriculture sector
  • Mix reaction in fertilizer stocks was witnessed amid the uncertainty on gas related issues. Fatima and FFBL outperformed the market by 6 percent and 2 percent respectively, while both FFC and Engro unperformed by 1 percent
  • Gas supply has been cut off again, and urea prices are getting increased

Nestle Pakistan Limited, International Industries, Siemens Engineering, Dawood Hercules Corp. and E.F.U. Life Assurance were the major gainers while Jahangir Siddiqui & Co, Shifa Int Hospitals Ltd, Al‐Ghazi Tractors, Jubilee General Ins. Co Ltd and Ibrahim Fibers were major losers at KSE 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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