Karachi Stock Exchange Weekly Analysis 29 September, 2012

The Karachi Stock Exchange (KSE) market movement was lackluster. KSE – 100 index has reached 15,444 points by losing 6 points or -0.05 percent. While the KSE 30-share index has reached on 13,029.44 points by gaining 5 points or 0.04 percent.

The weekly turnover went up by 90.40 percent and traded 113.94 million shares as compared to previous week’s 59.84 million shares.

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

  • Investors opted for a cautious stance ahead of the monetary policy statement due on October 5
  • Foreign interest was intact as foreigners were net buyers of $4.9 million
  • Increase in cement dispatches and healthy results announcement from mid-cap cement stocks kept the sector in the limelight
  • The market seemingly looks to be awaiting triggers with the result season having completed coupled with social uncertainty
  • Countrywide protests as well as potential political uncertainty following rising tensions between the judiciary and the Government following objections raised by the Supreme Court on the draft letter to Swiss Courts
  • Government may provide US$400mn for transmission network for fertilizer. Petroleum ministry has proposed allocation of 202mmcfd of gas from Kunar Pasaki Deep, Bahi, Reiti Maru, Mari and Makori East to fertilizer units currently on SNGPL network
  • Owing to influx of used cars, the continuous slow‐down in sale of locally‐made cars is hampering production plans of auto makers
  • MoF has approved an increase in petrol price by PKR1.73/ltr, while price‐cuts have beenannounced in other petroleum products from under the weekly revision in POL prices
  • PSO has saved PKR 50 million in foreign exchange by giving haulage contract of 71,500 tons furnace oil to PNSC. The tanker MT Lahore is presently unloading 71,500 tons of FO
  • APTMA has said that Textile industry has incurred over PKR3bn production loss besides rendering mns of workers jobless due to sudden cut in gas supply Tuesday night
  • SNGPL gas supply from Qadirpur Gas Field has started and he hoped that gas supply to the power sector will be restored on Thursday night and industry will get on Friday

Abbot Laboratories, Media Times Limited, Indus Dyeing, Attock Petroleum Limited, NETSOL,MDTL, IGIIL, PCAL, ULEVER, GRAYS, UPFL, DAWH, PKGS and Shifa Int Hospitals Ltd were the major gainers while Siemens Engineering, Ibrahim Fibers, Mari Gas, COLG, GHGL, AGL, ABL, FFBL, TRG, BAFL, UBL, Dawood Hercules and Philip Morris Pak Ltd were major losers in the benchmark KSE-100 this week.

The Ministry of Petroleum and Natural Resources has reportedly assured OMCs that it will shore up their marketing margins on petrol and diesel by Rs 1 to Rs 1.5 per litre due to rupee depreciation and inflationary pressures on OMCs profitability. Analysts estimate this would boost OMCs earnings by 14-25 percent if it materialises. Key OMCs - PSO, APL and Shell - witnessed a weekly return of 0.2 percent, 6.9 percent and 1.1 percent, respectively.

Thank you very much for reading this article.

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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