Karachi Stock Exchange Weekly Analysis 4 November, 2012


The Karachi Stock Exchange (KSE) market has managed to break the elusive 16,000 points mark for the first time after several futile attempts. KSE – 100 index closed at 16,101.55 points by gaining 288.83 points or 1.83 percent. While the KSE 30-share index has reached on 13,209.25 points by gaining 282.06 points or 2.18 percent. Average volumes too surged by 13%WoW to 150 million shares while net buying from foreigners this week amounted to US$12.6 million.

Investors remained confident throughout the week, because of expectations that October 2012 Consumer Price Index (CPI) figure will slide further. Market expectations were realized on Friday with October 2012 CPI clocking in at 7.66% versus 8.79% last month, thus raising hopes of another rate cut in the next monetary policy (due in December).

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


  • Investors are expecting further rate cut in next monetary policy by State Bank of Pakistan, which is due in month of December
  • Urea sales went down 50% YoY and 18% MoM in September due to lower off‐take post rains. However DAP sales picked up 68% YoY in anticipation of price hike in the coming month with the beginning of DAP application for wheat sowing season
  • Lucky Cement has posted 34% earnings growth for 1QFY13
  • For textile manufacturers another positive came into effect with the official commencement of the EU duty waiver (valid till Dec ‐ 2013)
  • Investor interest was concentrated in the Cement and the Textile sectors with LUCK and NML outperforming the market by 1.1% and 3.6% respectively
  • Besides, the sale of cement in the local market remained on the higher side and cement exports to Afghanistan is also likely to gear up.
  • Investors remained confident throughout the week, because of xpectations that October 2012 Consumer Price Index (CPI) figure will slide further. Market expectations were realized on Friday with October 2012 CPI clocking in at 7.66% versus 8.79% last month, thus raising hopes of another rate cut in the next monetary policy (due in December)
  • Better-than-expected earnings of Pakistan Petroleum Ltd and Hubco triggered across-the-board buying
  • Net buying by foreigners this week amounted to $12.6 million


Attock Cement, IGI Insurance, POL, NML, UBL, Pak Services, TRG Pakistan and Bank of Khyber were the major gainers while Netsol Technologies, Kohinoor Energy, Agriauto Ind, SNGP, ENGRO, Pak Cables and Pak Suzuki Motors were major losers in the benchmark KSE - 100 this week.

According to experts, the index would stand around 17,000-points level by the end of December with the expected improvement in business fundamentals of fertilizer manufacturers and telecom companies and also hopes of another rate cut in the next monetary policy.

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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