Karachi Stock Exchange Weekly Analysis 1 January, 2012

The Karachi Stock Exchange (KSE) market has managed to close in green zone, because of easing political concerns and expectations of early resolution of CGT (Capital Gain Tax) issue. KSE – 100 index has reached 11,347.09 points by gaining of 47 points or 0.4 per cent. The daily turnover increased 104.31 percent to 62.56 million shares as compared to 30.62 million shares of the previous week.

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

  • Institutions have supported market in oil sector, because of hike of oil prices in International market
  • Gas crisis are increasing in country, and government is considering for a month long closure of CNG stations and increasing CNG prices
  • Government of Pakistan has finalized rate hike of gas by 14 to 207 percent from January 2012
  • Foreign Portfolio Investors were mostly remain inactive because of Christmas and new year holidays
  • Memogate controversy and shortage of gas supply to manufacturing sector especially for Fertilizer sector, have really hurt the sentiments of investors
  • All fertilizer sales in November were down 11 percent, whereas both urea and DAP offtake dropped by 12 percent and 22 percent, respectively.
  • SECP (Securities and Exchange Commission of Pakistan) has amended rules of MTS (Margin Trading System) last week. And now SECP is going to meet FBR (Federal Board of Revenue) regarding relaxing rules of CGT
  • Majority of investors attributed the decline in KSE in 2011 to massive foreign selling. According to the National Clearing Company of Pakistan Limited, foreigners sold net shares worth $127.21 million in the year 2011 against $526.37 million net buying in the previous calendar year 2010
  • World Bank plans up to $5.5 billion lending
  • Pak‐India talks on Confidence Building Measures
  • LSM growth up 2.07% YoY in 4MFY12
  • T‐bill Auction – Low participation drives rates higher
  • A landmark currency swap agreement between Pakistan and China
  • Urea and DAP sales down by 5% and 19%YoY respectively

AGTL, PTC, AICL, Media Times Limited, Nestle Pakistan Limited, Silkbank Limited, Siemens Engineering and International Industries were the major gainers while ENGRO, Fauji Fertilizer Bin Qasim, Shifa Int Hospitals Ltd, Arif Habib Corporation and Pak Suzuki Motors 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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