Karachi Stock Exchange Weekly Analysis 19 February, 2012

The Karachi Stock Exchange (KSE) market movement was bullish in last week. KSE – 100 index has reached 12,450 points by gaining of 264 points or 2.2 per cent with average daily volumes edging higher by 3.21% WoW to 175.05 million shares. While the KSE 30 Index gained 99.61 points, or 0.86 percent, to end at 11,671.63 points. Shares of 340 companies were traded, out of which 138 advanced, 121 declined and 81 remained unchanged.

Shrugging off a status quo on monetary policy and a nominal FPI outflow, a buying spree was the tale of the bourse which was supplemented by healthy payouts from Kapco and Engro Corp. Higher global commodities, easing political outlook and expectations for official announcements on resolution of capital gains tax (CGT) issue at KSE also played a catalyst role in the prevailing of bullish sentiments

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

  • Investors cheer on passage of the 20th Amendment Bill 2012 and strong corporate results (especially of ENGRO, ABL, AKBL and DGKC), these results have increased the confidence of local investors and of foreign investors as well
  • US proposes US$2.4bn aid to Pakistan
  • The WTO (World Trade Organization) General Council’s approved for the much awaited “Additional Autonomous Trade Preferences” package to Pakistan
  • Positivity came out after FBR officials visited stock market and CDC to review the CGT collection mechanism
  • Investors took it as a step towards realization of Finance Minister promises for equity market reforms
  • Meanwhile, discussions with India on MFN status and trilateral talks between Pakistan, Iran and Afghanistan also supported market activity as leading sectors landed in green.
  • Iran has agreed to extend trade with Pakistan to USD10bn and showed its interest to provide oil to Pakistan on deferred payments
  • Remittances up 38%MoM in Jan-12 to US$1.11 Billion
  • FDI down 41% to USD594mn in 7MFY12
  • Trade deficit mounts to USD 13.17bn in 7MFY12, up 38%YoY
  • LOTPTA USD 500mn expansion plan in jeopardy
  • Pakistan has been added to blacklist of money laundering
  • NFML raised urea prices to PRs1,600/bag
  • Car sales have been increased in Pakistan by 17% YoY
  • During the outgoing week, foreign investors were net sellers worth $800,000

E.F.U. General Insurance, Jahangir Siddiqui & Co, NetSol Technologies, Feroze1888 and Pakistan Reinsurance were the major gainers while Abbot Laboratories, Pak. Int. Cont. Ter. Ltd., Indus Dyeing, PICIC Growth Fund and Philip Morris Pak Ltd were major losers at KSE last week.

Highest volumes were witnessed in JSCL with a turnover of 30.603 million shares as it gained 24 paisas to end at Rs9.41 followed by DGKC with a turnover of 27.203 million shares as it lost 51 paisas to close at Rs25.16. Azgard Nine with a turnover of 23.660 million shares gained 59 paisas to finish at Rs6.72. The market capitalisation increased to Rs3.257 trillion from Rs3.23 trillion in the last trading session. The top five advancers were Nestle Pakistan, Colgate Palmolive, Millat Tractors, Fazal Textile and Pakistan Oilfields.

The top five decliners were Unilever Pakistan, Island Textile, Atlas Honda, Shahtaj Sugar and Pakistan International Container.

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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