Karachi Stock Exchange Weekly Analysis 1 April, 2012

The Karachi Stock Exchange (KSE) market has witnessed a bullish trend. KSE – 100 index has reached 13,761.76 points by losing of 488.47 points or 3.7 percent. While the KSE 30-share index rose by 532.22 points, or 4.59 percent.

During the outgoing week, the average daily volumes improved by 48 percent to 368 million shares. The market capitalisation also surged by Rs126 billion to Rs3,582 billion. Foreigners, after six weeks, turned sellers by selling shares worth $7.7 million in the week. Please note that it is the highest level achieved during last four years (since May, 2008), and according to analysts market will cross psychological level of 14,000 points soon.

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

  • Government has delayed CGT (Capital Gain Tax) reform imposition, and law & order situation in Karachi. But it didn’t have much of an impact on the sentiments of investors
  • Pakistan and US relations are getting improved
  • OGRA has announced increased fuel prices
  • The joint sitting of the parliament passed the bill on corporatisation, demutualisation and integration of the stock exchanges during the week
  • Investors are expecting healthy earnings in cement and bank sector.
  • NPIH (National Power International Holding) has decided to offload 17.44 percent shares of HUBCO, pending regulatory approval at the price of Rs 31 per share. The stock price of HUBCO outperformed the market by 10 percent
  • National Fertilizer Development Centre’s (NFDC) report for February shows that fertilizer offtake for the month drastically declined by 65 percent on yearly basis to 199,000 tonnes
  • Cement prices have been increased, Rs 10 per bag
  • Foreigners, after six weeks, turned sellers by selling shares worth $7.7 million
  • The monetary policy announcement scheduled for April 13 was expected to maintain status-quo with discount rates standing at 12 percent
  • Politics is expected to endure a choppy few weeks as the apex court is due to announce its verdict on the National Reconciliation Ordinance’s implementation case in mid-April. Moreover, the issue of reopening NATO supply routes has been under discussion at the highest level, which was expected to end with a firm decision soon
  • Aggressive tax collection on fiscal side exceeding Rs 1,122 bn (28% YoY) during Jul-Feb 2012 and efforts of government to reinitiate the privatization program through finalizing the SPO of PPL also supported the investor's confidence in the market
  • Fx reserves increased to 0.27% WoW to USD16.44bn
  • Pakistan is looking toward Russia for IP gas project
  • India offers Pakistan 5,000MW of electricity, offer accepted
  • Government signs accord with World Bank for additional US$150mn and borrowing from SBP at PRs1.39tn

Faysal Bank, Askari Bank, Pace (Pak) Ltd, BYCO Petroleum, Lafarge Pakistan Cement Ltd, Askari Bank Ltd., Maple Leaf Cement Factory Limited, National Bank Of Pakistan, Bank Al-Falah Limited, Hub Power Company Limited, Nishat Mills Ltd., Nishat (Chunian) Limited., D. G. Khan Cement Co., NIB Bank Limited, Lotte Pakistan PTA Ltd. and TRG Pakistan were the major gainers while Colgate Palmolive, Pakistan Reinsurance, Engro Polymer, Bata Pakistan and Pak. Int. Cont. Ter. Ltd. were major losers last week.

The top-5 scrips at the futures counter holding 59% of the total open interest were ENGRO, DGKC, NML , FFC and NBP.

According to experts, top picks include ENGRO, FFC, PPL, APL, PSO, OGDC, POL, NCPL, NBP and HUBC. While FFC, Lucky, DGKC and PTC warrant a closer look as they offer a combination of inexpensive valuations, healthy upside potentials and double‐digit dividend yields at current levels.

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 comment:

  1. can i get the report on email as soon it is published here