Karachi Stock Exchange Weekly Analysis 29 January, 2012

The Karachi Stock Exchange (KSE) market movement was bullish in last week. KSE – 100 index has reached 11,960.22 points by gaining of 185.54 points or 2.83 per cent. KSE – 100 index has went beyond 12,000 points mark multiple times during the week. KSE market will likely to maintain its momentum because few nice results from blue chips e.g. banks and fertilisers are expected.

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

  • Issuance of SRO on relaxing rules for CGT (Capital Gain Tax) is awaited vehemently. SECP proposals accepted by Finance Ministry for capital market
  • Freeze of CGT’s rate at current levels and abolition of withholding tax on brokers’ income would be additional incentives to re-attract the gone investors
  • According to experts, hearings in supreme court e.g. Memo gate scandal, NRO etc. will not affect the movement of market in next week, unless the court announces a radical decision
  • The market will have an eye out for the CPI number for January as it will help shape market expectations on path of discount rate
  • During last week, average daily volumes jumped up by 67 percent to 145 million shares. The market capitalisation improved by Rs49 billion to Rs3,105 billion
  • Foreign portfolio investors again appear as net buyers of shares worth $7.38 million shares last week, according to National Clearing Company of Pakistan Limited
  • US$1000 per NATO container fee on the cards
  • POL prices (Rs. 5 per litre) are expected to be increased
  • Investments in National Saving Scheme rise to Rs. 92 billion
  • LSM growth slows to 1.5% in July‐Nov
  • Around 133 E&P licenses granted for energy
  • 50% cut in taxes on diesel under consideration
  • Fiscal deficit likely to stay at 7% of GDP

Silkbank Limited, Agritech Limited, Engro Corporation, D.G. Khan Cement and Pak. Int. Cont. Ter. Ltd. were the major gainers while Pak Telephone, Lotte Pakistan PTA, Siemens Engineering, Philip Morris Pak Ltd and Dawood Hercules 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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