Karachi Stock Exchange Weekly Analysis 13 October, 2012

The Karachi Stock Exchange (KSE) market movement was volatile in this week. KSE – 100 index was coming close to 16,000 points mark but eventually closed at 15,694 points by losing 60.18 points or -0.38 percent. While the KSE 30-share index has reached on 12,903.38 points by losing 310.48 points or -2.35 percent. Average daily volumes in the outgoing week were recorded at 117mn shares, down 13%WoW.

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

  • Following the recent 50bp cut in discount rate, the govt. has reduced profit rates on NSS (National Savings Scheme) instruments by ~46-80bps with effect from October 12th
  • Foreigners showed interest in the market, with net buying worth US$9.4mn in the week
  • On the political front, finally the draft letter was approved by Supreme Court despite inclusion of text related to immunity
  • 50 Oil and Gas Exploration and Production blocks on offer under bidding route by government
  • ADB has enhanced Pakistan's growth forecast for the year 2012 to 3.7% from 3.6% projected earlier
  • In September 2012, cement sales were up 14%YoY and 14% MoM, whereas auto sales were down 31%YoY and 6% MoM
  • OGDCL is conducting evaluation of different overseas exploration blocks and making efforts to acquire exploration blocks in Commonwealth of Independent States, Africa and China
  • IMF forecast in its latest health check on the world economy that global output in 2012 would grow just 3.3%, down from a July estimate of 3.5%
  • MCB, MEBL, BIPL amongst Banks, Cements (ACPL, MLCF, KOHC), Fertilizers (FFBL) and Telecoms (PTC) announcing their results in the coming week
  • Lucky Cement would form a SPV called Lucky Holdings to eventually acquire 75.8% stake in ICI Pakistan
  • US waived restrictions to allow US$ 2 billion aid to Pakistan

Colgate Palmolive, Packages Limited, Jubilee General Ins. Co Ltd, IGI Insurance, Nishat (Chunian) Limited, Allied Bank Limited, Askari Bank Limited, I.C.I Pakistan, Lucky Cement, Sui Northern Gas Ltd., NBP, MCB, DGKC and United Bank Limited were the major gainers while Pace (Pak) Ltd, Engro Corporation, Dawood Hercules Corp., KAPCO, Attock Refinery, Attock Petroleum, National Refinery, Pak Oilfields, Indus Motors and Hub Power Company were major losers in the benchmark KSE-100 this week.

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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