Karachi Stock Exchange Weekly Analysis 11 August, 2012

The Karachi Stock Exchange (KSE) market performance was lackluster and insipid. KSE – 100 index has reached 14,761 points by gaining 85 points or 0.6 percent.

Volumes however remained low at 60 million shares down 28%WoW. Foreigners were net buyers of US$ 1.7 million during the week.

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

  • State Bank of Pakistan has announced its next monetary policy. In which they have proposed 1.5% cut of interest rate and lead it to 10.5 basis points
  • Consistently positive FPIs have also played positive role in market movement
  • Political turmoil and uncertainty has adversely affected sentiments of investors. Supreme court has issued a show cause notice to the Prime Minister on the NRO case. And PM has to be appeared in court on 27 August
  • Few nice corporate results have drive the market to positive direction. The important results announced last week which were above expectations are: PSO,  OGDC, INDU, MCB. Although HBL results were below expectations. Engro Polymer has reported net loss of PRs 0.60/share or PRs 395 million for 2Q
  • In T‐bill auction held on Aug 8th, the govt. raised PRs 323 billion against target of PRs 300 billion 
  • ECC has approved 0.3 million tons of urea and cut of Rs.150 per bag of urea has been proposed. These news have revived sentiments of urea producers i.e. FFC and ENGRO
  • According to the latest sales figures released by Pakistan Automotive Manufacturers Association (PAMA), auto sales plunged by 46%MoM (and 41%YoY) to 10,435 units in July 2012
  • CCI approved a new petroleum policy which will set wellhead gas price at US$ 6-9/mmbtu (up from US$ 3.5/mmbtu). The government is also likely to raise Qadirpur well head gas price to US$ 3.2/mmbtu from US$ 2.56/mmbtu
  • The government has also decided to revise POL prices on weekly basis
  • The US Congress has released 280 million dollars as new US assistance to support Pakistan's energy sector
  • July 2012 started on a dismal note for the cement sector as the industry posted a decline of 1.64% in its despatches compared with the despatches achieved in last year July 2011
  • PPL has allocated PKR6.4bn for its current fiscal year’s exploration capital expenditure plan, a more than 100 percent increase from last year’s PKR3.1bn as the company pursues its ambitious exploration programme

K.E.S.C., Security Paper Limited, Bestway Cement, E.F.U. Life Assurance, ABL, Shell Pakistan, PSO, Indus dyeing Manuf Co, Rafhan Maize products and Clariant Pak were the major gainers while Agritech Limited, Habib Metro Bank, Engro Polymer, P.T.C.L., UBL, SNGPL, Askari Bank, Pak Reinusrance, Ibrahim Fibres and GlaxoSmithKline were major losers in the benchmark KSE-100 this week.

Top performers of last week were: Maple Leaf Cement Factory Limited, Allied Bank Limited, Shell Pakistan Limited, Pakistan State Oil Co. Ltd., Pak Petroleum Ltd., Engro Corporation Limited, Indus Motor Company Limited, Packages Limited, Engro Foods Ltd., Lotte Pakistan PTA Ltd., Habib Bank Ltd.

Top average daily turnover for week: KESC, JSCL, MLCF, DGKC, QUICE

NOTE: The information posted in this blog (forum) is based on current affairs & investors point of view. There may be discrepancy in the ground realities.

Written by: Rana Khurram

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