Karachi Stock Exchange Weekly Analysis 26 February, 2012

The Karachi Stock Exchange (KSE) market movement was bullish in last week and positivity remained continuous and KSE – 100 index has crossed the psychological level of 12,700 points which is the highest level achieved since last 10 months. KSE – 100 index has reached 12,707 points by gaining of 257 points or 1.69 per cent. According to experts KSE – 100 index will reach 13,000 points level soon.

Volumes were also better and reached up to 322 million shares which is the highest level achieved since last 22 months. Average traded volumes during the week stood at 240mn shares (up 37% WoW), while average traded value went up by 45% to USD72mn.

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

  • KSE market has witnessed positive activities because of strong result season
  • Rising of oil and fertilizer prices have also played important role in the movement of KSE index. International oil prices (Arab Light) crossed US$120 per barrel again
  • NDFC (National Fertilizer Development Centre) released urea offtake figures for Jan-12, which showed a massive growth in urea of 55% YoY, while DAP offtake was lower by 51%YoY
  • Engro has reduced DAP prices by PRs310/bag to PRs3750/bag
  • Government of Pakistan has finalized the loan – swap deal of 150 billion for energy sector
  • Pakistani Rupee stayed firm against US$ regardless of IMF (International Monetary Fund) repayment of US$417 million
  • Agri credit by banks up 20%YoY to Rs149.7bn in 7MFY12
  • Investors have serious concerns over swelling country’s current account deficit and ever rising government borrowings
  • Government decides to borrow US$600mn from IDB
  • Foreign investors also placed funds worth USD1.6mn during the week as compared to a net outflow of USD 0.84mn recorded in the previous week
  • POL prices likely to go up by Rs2-7/litre
  • Current account deficit surges to USD2.63bn YoY during 7MFY12
  • Govt slashed public sector development projects worth Rs199bn
  • PTA likely to delay auction of 3G licences
  • Government has also proposed Radio tax on mobile usage and cars

TRG Pakistan, Pace (Pak) Ltd, K.E.S.C., Soneri Bank and Engro Polymer, MTL and BAFL were the major gainers while Pak Telephone, Nishat Power Ltd., P.T.C.L., Grays of Cambridge and Lotte Pakistan PTA, and MCB were major losers at KSE last week. Volume leaders this week included JSCL, ANL, DGKC, BAFL and BOP.

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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