Karachi Stock Exchange Weekly Analysis 3 February, 2013

The Karachi Stock Exchange (KSE) benchmark was bullish and reached the historical highest levels. With the result season in full swing, trading activity picked up pace with average daily volumes rising by 9.82%WoW to 215.82mn shares. KSE – 100 index closed at 17,266.23 points by gaining 209.87 points or 1.23 percent, while KSE – 30 index has reached on 14,106.66 by gaining of 175 points or 1.26 percent.

We expect the telecom sector to remain under the spotlight on expectation of bumper earnings following more than 7x increase in international call termination rates, while banks are also ripe for the year-end result season rally.

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

  • Political noise over nomination of caretaker Prime Minister and NAB Chairman’s letter controversy did not create a significant hurdle for the market
  • The investor community is hoping that current regime would announce the name of interim Prime Minister and chief ministers
  • The result season has kicked off on a positive note where LUCK, Attock group companies announced their financial results which were more or less in line with street estimates. Investors are waiting for the banking sector results to kickoff with MCB in the upcoming week. Payout expectation has kept the banking sector in the limelight with ample investor interest 
  • Key results during the week included the Attock Group companies (POL, ATRL and APL), cement sector companies (LUCK, MLCF and KOHC) and FATIMA
  • MCB and PPL are due to announce their scorecards next week
  • SBP (State Bank of Pakistan) is scheduled to announce its interim monetary policy in the upcoming week where we are not expecting any change in the discount rate
  • Inflation numbers for the Jan’13 was revealed today where CPI inflation on YTD basis reduces marginally by 4bps to 8.28% whereas core inflation and NFNE inflation remain sticky at 9.9%
  • Foreigners remained buyers of US$5.6mn this week

Pakistan Tobacco Co, Pace (Pak) Ltd, Hum Network Limited, NetSol Technologies, Engro Foods Limited, Nestle Pakistan, Standard Chartered Bank, J.D.W. Sugar, Millat Tractors, and Bank Al-Falah were the major gainers while Siemens Engineering, IGI Insurance, Azgard Nine, JS Growth Fund, Attock Petroleum Ltd., TPL Tracker, Cherat Cement, Pakistan Cables, Sui South Gas, and Security Paper Ltd. were major losers in the benchmark KSE-100 this week.

Top ten volume leaders were: FCCL, JSCL, PTC, LOTPTA, NIB, ENGRO, KESC, TRG, DGKC and PACE.

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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