Karachi Stock Exchange Weekly Analysis 21 April, 2013

The Karachi Stock Exchange (KSE) benchmark movement was volatile and bearish. Market closed in red zone, because of economic uncertainty in the country, falling foreign exchange reserves and lower-than-expected results of Pakistan Telecommunications Company Ltd (PTCL) and Attock Group of Companies. DGKC and Efoods March earnings also fell below investor’s expectation. KSE – 100 index closed at 18,631.21 points by gaining 83.07 points or 0.44 percent, while KSE – 30 index closed at 1 4,472.84 points.

The weekly turnover went down by 11.71 percent and traded 159.34 million shares compared to previous week’s 180.48 million shares. Volumes picked up 15% during the week to 164 million shares per day on average, while average daily values jumped 31% to Rs6.21 billion. Market capitalisation of the KSE dropped 1% to Rs4.55 trillion. According to analysts, results announcements, upcoming elections and change in global economic scenario will set investors’ mood.

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

  • Amid volatility in global equity markets and commodity prices the market also witnessed a volatile trading week
  • Heightened political uncertainty and weak law and order ahead of the upcoming elections weighed down on investor sentiment
  • Foreigner fund managers also remained net buyers of $8.8 million (till April 18)
  • Most of the companies announced their March quarter results this week like Attock Group, PTCL, Dera Ghazi Khan Cement (DGKC), Habib Bank Ltd and Engro Foods
  • Renewed buying interest in Oil and Gas Development Company, National bank of Pakistan and Engro Corporation was also seen
  • Over the last weekend State Bank of Pakistan announced the interim monetary policy keeping the discount rate unchanged at 9.5 percent
  • Foreign exchange reserves recently declined to $11.7 billion. In the upcoming months IMF payments of $800 million are likely to be made
  • The caretaker prime minister appointed Dr Shahid Amjad Chaudhry as finance adviser and in charge of the Ministry of Finance
  • Chairman of the Securities and Exchange Commission of Pakistan has also been removed, whereas SECP’s issues with various companies are also pending in the courts
  • Wheat procurement target fixed at 7.91mn tons
  • GoP borrowing from commercial banks reached a record high of PKR864bn between July 1, 2012 and April 5, 2013 on account of the higher fiscal deficit and a slowdown in revenue receipts
  • Current Account deficit reaches US$513mn in March
  • FFBL posted above expected net earnings of PRs0.53/sh (vs. Loss of PRs0.4/sh) for 1Q13
  • Saudi govt press agency informed that, the King had asked cement companies to import 10mn tons of cement to cover domestic shortages in the short term till new capacities come online

Top ten gainers of last week were: Muree Brewery Co, IGI Insurance, Abbot Laboratories, Feroz 1888 Mills, National Bank Of Pakistan, Agriautos Industries, Pak Suzuki Motor, Pak Services, Clariant Pakistan and Thal Ltd.

Top ten losers of last week were: Pakistan Telecommunication, Askari Bank, National Refinery, Lafarge Pakistan, Javedan Corporation, Shifa International Hospitals, Shell Pakistan, Bankislami Pakistan, Habib Bank and Sui South Gas.

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

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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