Karachi Stock Exchange Weekly Analysis 13 April, 2013

The Karachi Stock Exchange (KSE) benchmark movement was bullish, backed by strong FPI inflow which came in at US$6.3mn, while participation proved disappointing as political uncertainty increased.. KSE – 100 index closed at 1 8,714.28 points by gaining 78.25 points or 0.42 percent, while KSE – 30 index closed at 14,596.52 points by gaining 50.33 points or 0.35 percent. The KSE-100 Index gained 0.42%WoW to close at 18,714.28 points although average daily traded volumes dropped by 33%WoW to 142mn shares. All the sectors listed at the KSE, including cement, fertiliser, oil, and textiles, are showing persistent growth.

According to experts, The Karachi Stock Exchange’s (KSE) benchmark 100-index is likely to maintain upward trend next week with the beginning of financial reporting by listed companies for the quarter ended March 31. In case, foreign favourite stocks such as OGDCL and MCB Bank invite fresh buying then the index may test the 19,000 points level during the next week. Strong sales of fertiliser and cement, foreign buying in the blue-chip stocks and optimism about healthy March quarter results helped the market maintained positive trend throughout the week.

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

  • State Bank of Pakistan has announced the monetary policy, in which they have kept the discount rate unchanged to 9.5 bps
  • Investor sentiment was initially buoyed by the onset of the results season with added cheer for selected Fertilizers on improved gas supply
  • The Supreme Court’s declaration of the appointment of the Chairman SECP as invalid 
  • A sharp US$444mn WoW decline in foreign exchange reserves provided grounds for the market to take a breather on Friday
  • Asian Development Bank released a report during the week in which it stated that Pakistan’s gross domestic product growth rate is likely to decelerate to 3.6 percent in FY13 owing to the prevailing energy crisis in the country 
  • Incoming Corporate results are also setting market directions on positive zone. Key results due next week include PTC, POL, Attock Group companies, DGKC, EFOODS and HBL
  • Fauji Foundation completed financial close of Foundation Wind Energy‐II (FWEL‐II). The project is expected to have a power generation capacity of 49.5MW, located in Gharo, Sindh 
  • The Ministry of Water & Power reportedly sought PRs40bn from the Finance Ministry on an urgent basis to deal with the alarming power situation 
  • SNGPL restored gas supply to Engro on 1 month rotation basis
  • The IMF team is expected to visit Pakistan next week
  • The market is also likely to react strongly upon the selection of an interim finance minister
  • Foreign investors bought stocks worth $6.3 million

Bata (Pakistan), Pak Services, Pakistan Tobacco Co., Pak Suzuki Motors and NetSol Technologies were the major gainers while Azgard Nine, JS Bank Limited, Pakistan Reinsurance, National Foods and Jahangir Siddiqui & Co major losers in the benchmark KSE-100 this week.

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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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