Karachi Stock Exchange Weekly Analysis 30 March, 2013

The Karachi Stock Exchange (KSE) benchmark movement was bullish and led by buying in blue chips on support of easing political outlook and renewed foreign interest. KSE – 100 index closed at 18,043.31 points by gaining 80.19 points or 0.45 percent, while KSE – 30 index closed at 14,208.38 points by losing -49.34 points or -0.35 percent. Better expectations for March quarter also helped the index to recover its early week’s loss. Volumes also witnessed a similar trend, with average daily volumes increasing by 7.1%WoW to clock in at 186 million shares.

The market turnover went up by 103.29 percent and traded 204.39 million shares as against 100.54 million shares of the previous session. The overall market capitalization rose 0.93 percent and traded Rs 4.446 trillion as against Rs 4.405 trillion. Gainers outnumbered losers 203 to 103, while 23 stocks were unchanged.

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

  • Mir Hazar Khan Khoso, a former Chief Justice of Balochistan, was elected as the caretaker Prime Minister of Pakistan
  • Pakistan Telecom PTC +2% churning over 10mn shares while Wateen Telecom WTCL +9.4% traded near 29mn shares after company announced that its major share holder will buy back WTCL at PKR4.5/sh
  • Hubco announcing COD of 84MW Laraib Project
  • DGKC planning to take exposure in Mozambique by investing US$8.6mn in Sumaria Cement Holdings
  • Weighted average banking spreads registered at 6.18% in Feb’13, down 112bps YoY (further 3bp)
  • Supreme Court ordered CCP to complete the proceedings in the International Clearing House case within 30 days starting Apr 1, 2013
  • Fertilizer stocks came out of hibernation with Fauji Fertilizer FFC +.9% and Fatima Fertilizer FATIMA PA +4.9% as investors bet on higher March offtake. There is 162 percent rise in urea sales data for February 2013
  • Better foreign flows post Easter holidays will likely bring index names back in limelight
  • Renewed buying interest in heavyweight Oil and Gas Development Company and FFC also helped the index to gain 95 points
  • Cement stocks on low volumes kept the momentum upbeat that found support of cautious flows in singled out exploration and production and fertilizer stocks
  • Formation of new cabinet however can be looked as an interim trigger while quarter-end results to kick start from second week of April are likely to determine the future trend of the market
  • Petition filed in the Supreme Court against the appointment of CCP Chairperson Rahat Kunain and three other officials
  • Pakistan successfully paid its 11th installment (worth US$143.7mn) to the IMF without any major alarms (PKR depreciating by only 0.2%WoW)
  • Rumors related to cement cartel turned the cement stock volatile, but soon after investors realize the facts which pushed the stocks back on track
  • Govt borrowed PRs 943 billion up to Mar 15th; Sukuk auction drew PRs 43 billion

Top Gainers last week were: Nestle Pakistan, Shell Pakistan, UniLever Pakistan, Javedan Corporation, Stand.Chart.Bank, Dawood Hercules Corp, TRG Pakistan Ltd, National Refinery, Colgate Palmolive, and Muree Brewery Co.

Top Loers last week were: EFU Life Assur Ltd., Jah.Sidd. Co., EFU General Insurance, Pak.Int.Con, Bank Of Khyber, JS Growth Fund, K.E.S.C., J.D.W.Sugar, JS Bank, and United Bank.

Top ten volume leaders were: TRG, LOTPTA, FCCL, PTC, ENGRO, DGKC, JSCL, LPCL, NCPL and AICL.

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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