Karachi Stock Exchange Weekly Analysis 25 March, 2012

The Karachi Stock Exchange (KSE) market movement was range bound and market has witnessed a slight decline. KSE – 100 index has reached 13,273 points by losing of 24 points or 0.18 percent. With average daily volumes dropping 38%.

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

  • WB (World Bank) has approved funds of US$1.02 billion for energy and irrigation system
  • FPI inflow of US$3mn did not alter market dynamics significantly where we believe that sentiments are now centred on the upcoming CGT relief package
  • Re‐opening of NATO supply routes was recently debated and we expect to see a firm decision in this regard soon
  • The verdict on the PM-related issue continued to be held during the week, which kept investors on the sideline
  • Cotton production has increased by 25% to 14.55mn bales
  • Weekly FPI adds USD5.2mn in Pakistan stock market
  • Govt is likely to raise profit rates on various products of NSS
  • Power tariffs of 21% raised by NEPRA as fuel adjustments account
  • SNGPL has cut off gas supply of ENGRO for a brief period
  • SBP (State Bank of Pakistan) allows Banks, DFIs to provide financing to dairy sector
  • SBP has released second quarterly report in which better performance by agriculture and services sectors (particularly Banks) as well as a relatively controlled FY12F inflation at 11%-12% were highlighted
  • National Savings Scheme may increase profit rates
  • Government raised PRs57.3bn in T‐bill auction
  • Auto sales for the month of Feb-12 exhibited an increase of 13.5% YoY while sequentially there was a marginal increase of 1%

Ibrahim Fibers, Engro Polymer, TRG Pakistan, Javedan Corporation, E.F.U. General Insurance, MEBL, EFOODS, and DGKC were the major gainers while NBP, AKBL, ABL, BAFL, Pakistan Tobacco Company, Fauji Fertilizer Bin Qasim, Packages Limited, Faysal Bank and Pak Cables were major losers last week.

In the upcoming week Fertilizers are likely to remain under pressure as 1QCY12 result outlook remains subdued owing to low off take while Cements are likely to continue with their strong performance owing to improved margins and possible M&A noise. Moreover, the Oil sector has remained a laggard in the current rally but is due for some outperformance as global rise in oil prices boosts profitability.

According to experts top picks for the coming week are: DGKC, LUCKY, PTC, FCCL, FFC, FFBL, ENGRO, OGDC, APL, PSO, HUBCO, NCPL, POL, and PPL.

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


  1. this is a great way to update other on weekly basis regarding volatility of Karachi stock Exchange. . thnx