Karachi Stock Exchange Weekly Analysis 5 January, 2013

The Karachi Stock Exchange (KSE) index movement was bearish, because of political uncertainty prevailing within the country. KSE – 100 index closed at 16,648.84 points by losgin 294.35 points or 1.74 percent, while KSE – 30 index has reached 13,589.67 points by losing of 205.89 points or 1.49 percent. Trading activity picked up during the week with average daily volumes rising by 22.6%WoW to 148mn shares.

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

  • New entrant Mr. Tahir‐ul Qadri and his reform agenda could be the core reason behind the recent market downturn
  • Increase in gas tariff for all categories by 6.0% effective Jan 1, 2013
  • Acceleration in CPI for the first time in seven months to clock in at 7.93% YoY in Dec, 2012
  • Reduction in EFS rates by 20bps effective Jan 1, 2013
  • Improved FX position of the country following reserve improvement by US$430mn WoW to US$13.8bn due to receipt of US$688mn from the Coalition Support Fund (CSF)
  • According to analyst, the market is likely to remain patchy in the coming week as investors eye the outcome of the threatened Long March, due to take place on Jan 14
  • The next trigger for the market will likely be the commencement of the result season 
  • Cements and Textiles are particularly expected to report healthy profits where the two sectors are again likely to be in the limelight in the coming days
  • Central Directorate of National Savings announced 20‐24bp reduction in profit rates of National Savings Scheme instruments effective January 1st, in response to 50bp cut in discount rate by the State Bank
  • Pakistan on received USD688mn from the USA on account of CSF, a fund created for reimbursing expenses incurred by Pakistan on counter‐insurgency operations
  • Forex reserves up by US$430mn during the week ended Dec 28th to US$13.8bn, mainly due to arrival of foreign inflows worth US$688mn under the Coalition Support Fund from US
  • ICI Pakistan announced on the Lucky Holdings had completed the acquisition of shares

Ghani Glass, Pakistan Reinsurance, Millat Tractors, Security Paper Limited, Clariant Pak, JS Growth Fund, Murree Brewery Co Ltd, Colgate Palmolive, Askari Bank Ltd, and Attock Cement were the major gainers while Hum Network Limited, Siemens Pak Engg, Grays Of Cambridge, TPL Trakker Ltd, Azgard Nine, IGI Insurance, Pace (Pak) Ltd., B.O.Punjab, JSCL, and Int.Ind.Ltd were major losers in the benchmark KSE-100 this week.

Top ten volume leaders were: JSCL, BOP, FCCL, NIB, PTC, ANL, TRG, KESC, NML, and DGKC.

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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