Karachi Stock Exchange Weekly Analysis 25 November, 2012

The Karachi Stock Exchange (KSE) market stays in consolidation mode as the deteriorating law and order situation in the country kept investors jittery. KSE – 100 index closed at 16,238 points by gaining 40 points or 0.2 percent. Average volumes too improved by 48 percent to 253 million shares, while foreigners bought shares worth $5.7 million on a net basis.

Investor interest was mainly skewed towards second and third tier stocks while strong fundaments of the cement and the textile sector also attracted attention.

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

  • With the implementation of EU trade package`, Record exports in textile sector
  • Economic Coordination Committee of the Federal Cabinet has announced to impose ban on import of used cars more than 3 years old
  • On the macro front, Pakistan reported a current account surplus of $258 million in 4MFY13 versus a deficit of $1.7 billion in 4M FY12
  • Oil sales figures were released this week with 4M FY13 consumption down 4 percent YoY
  • Hike in wheat support price by 14 percent, or Rs 150 per 40 kg to Rs 1,200 per 40 kg from Rs 1,050 per 40 kg, this week
  • Along with cement stocks and Engro Corp, Islamic banks also came in limelight
  • Investors interest remained in mid cap cement stocks amid hope of better earnings
  • Gas restoration and dedicated gas fields expected announcement to fertilizer plants kept interest alive in the sector especially in Engro Corp
  • Although FY13 wheat sowing season has already commenced, nonetheless the decision could help kick-start the seasonal uptake in the demand for DAP in December
  • Central bank announced to lifting minimum deposit rate requirement to Islamic bank brought interest in Meezan Bank and Bank Islami while BAFL also rose as it has aprox 20 percent of Islamic deposits in its deposit base
  • After Asian PTA producers proposed to link the PTA price with Paraxylene to improve their margins LOTPTA also gained momentum on the local bourse
  • The State Bank of Pakistan (SBP) confirmed that the payment of the seventh installment of the standby arrangement, worth $394.3 million, was successfully made to the International Monetary Fund (IMF)
  • D‐8 agrees to boost trade to US$ 500 billion

Grays Of Cambridge., Pace (Pak) Ltd, Nishat Chunian Limited, Adamjee Insurance, Indus Motors, Agriautos Industries, Bata Pakistan, Bank Islami Pakistan, ANL and Faysal Bank were the major gainers while IGI Insurance, Jahangir Siddiqui & Co, Kohinoor Energy, Murree Brewery, Allied Rental Mod, Colgate Palmolive, National Foods, Attock Refinery, Siemens Pak Engg., and Attock Cement 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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