Karachi Stock Exchange Weekly Analysis 12 March, 2012

The Karachi Stock Exchange (KSE) market movement was bullish in last week and positivity remained continuous and KSE – 100. KSE – 100 index has reached 13,353 points by gaining of 262 points or 2.0 per cent. The KSE-30 Index rose to 12,117.94 points. Please note that it is the highest level achieved since last 46 months. It has generated six-year high volumes of above 550 million shares on Friday, ahead of implementation of reformed CGT.

The session volumes at 552.79 million shares were 54 percent higher than 358.17 million shares traded in the previous session. Volumes in the futures market also improved to 15.10 million shares from 12.95 million shares traded a day earlier.

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

  • Investors’ expectation for reformed CGT regime implementation from April 1, higher global commodities and stocks, and easing circular debt concerns in the power sector after expectations of increase in DISCOs electricity tariff kept activities at the KSE on the higher side
  • The major activity was seen in low-priced stocks such as NIB Bank, TRG Pakistan, Fauji Cement, Lafarge Pakistan and Fatima Fertilizer. And these low priced stocks have fetched 40 percent total volume
  • Other notable stocks which had drive market to positive direction are MCB Bank Limited, United Bank Limited, National Bank, Bank Alfalah, Silkbank, Oil and Gas Development Company, Fatima Fertilizer and Jahangir Siddiqui and Company
  • The market capitalisation improved by Rs24 billion to Rs3,472 billion. Out of the total 367 companies’ stocks traded, 205 advanced, 108 declined and 54 closed unchanged
  • SNGPL restores gas supply to Engro and Pak Arab Fertilizer
  • India bans cotton exports
  • PTA postpones 3G license auction
  • S&P in its recently released report kept Pakistan’s rating unchanged at ‘B-’ with a stable outlook
  • Much awaited result of NBP was announced this week. The bank reported an EPS of Rs10.47 in 2011 versus Rs10.44 recorded last year. Also, the bank announced a final dividend of Rs7.5 per share and a bonus issue of 10% which was above the consensus estimates. Consequently, the stock outperformed the market by 3.9%
  • Furthermore, the cement sector outperformed the market on strong earnings outlook

NIB Bank, Jahangir Siddiqui & Co, TRG Pakistan, Pace (Pak) Ltd and Bestway Cement were the major gainers while E.F.U. General Insurance, Pak Services, Pakistan Petroleum, E.F.U. Life Assurance and Ghani Glass were major losers at KSE last week. TRG Pakistan was the second volume leader with a turnover of 44.89 million shares as it closed at Rs3.62 with a loss of three paisas followed by Fauji Cement with a turnover of 34.70 million shares as it closed at Rs5.52 with a gain of three paisas.

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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