Karachi Stock Exchange Weekly Analysis 18 March, 2012

The Karachi Stock Exchange (KSE) market movement was range bound with corrective spells in last week. KSE – 100 index has reached 13,297 points by losing of 56 points or 0.4 percent. Investors’ confidence remained intact as daily average volume stood at 400mn shares compared to 355 mn shares last week, increasing by 12.7% WoW.

Following news have played vital role in Karachi Stock Market index movement:
  • With the net selling by foreigners during last two days of the week, FIPI witnessed an inflow of USD 1.6mn during the week as compare to inflow of USD 7.5mn in the previous week
  • Higher oil prices and better foreign remittances figures fuelled. Oil sector circular debt stands ~PKR397bn
  • Tax collection increases by 28% YoY in 8MFY12 – FBR
  • ECC approved increase in imported urea prices
  • LSM growth rises to 1.26% in Jul‐Jan12
  • Remittances: Immunity should be restricted to family members
  • Government conducted PIB auction during the week in which PKR 25bn were raised against maturity of PKR 28bn, with upward shift in yield curve
  • There were also few positives vibes for banking sector related to increased penetration from branchless banking (growing 15%YoY during 2QFY11) and recovery of overall NPLs of banks and DFI
  • Budgetary borrowing from banks reached PKR 914bn
  • Trade deficit surges USD14.6bn in 8MFY12, 41.2% up YoY
  • Rabi crops to face 50% water shortage this year
  • Fertilizer sector remained under pressure due to reports of urea offtake witnessing a decline in February

SSGC, SNGP, PSMC, K.E.S.C., Jahangir Siddiqui & Co, Grays Of Cambridge, Soneri Bank and P.I.A.C. (A) were the major gainers while AICL, NBP, Media Times Limited, E.F.U. Life Assurance, IGI Insurance, Engro Polymer and East West Insurance were major losers at KSE last week. JSCL, NIB, TRG, LPCL and FCCL were the volume leaders 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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