Karachi Stock Exchange Weekly Analysis 27 April, 2013

The Karachi Stock Exchange (KSE) benchmark movement was bullish. As corporate results were in full flow and a choppy political arena along with deteriorating law and order failed to dent the upswing. KSE – 100 index closed at 18,917.71 points by gaining 268.50 points or 1.5 percent. While KSE – 30 index closed at 1 4,584.18 points. The Karachi Stock Exchange is likely to witness upward trend next week on the back of announcement of better-than-expected results, Unless there is any unwelcome situation such as delay in elections.

Volumes improved by 15 percent on week-on-week basis to 189 million shares against 164 million shares last week. Foreign portfolio investment was recorded at $5.9 million during the week.

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

  • The attack on few political parties by extremist disrupted the business activity for two days
  • In the outgoing week, result of cement companies provided the required boost to the investor sentiment. Result of FECTO, MLCF and PIOC were well received by investors
  • The cement industry anticipates an increase 50‐kg bag following a hike in transportation costs of cement and coal
  • Number of big ticket banks including MCB, NBP along with FFC and LUCK are scheduled to declare their quarterly results early next week
  • Foreign exchange reserve improved to USD11.94bn backed by possible inflow received from Unilever international
  • Pak rupee continued to remain volatile and touched a three figure mark on the back of economic concerns
  • The prices of steel bar made from ship plates have surged to PKR 68,000/ ton in the domestic market after an increase of PKR 4,000/ ton
  • HBL, Pakistan’s largest bank, recently signed an agreement with Daewoo Pakistan Express Bus Service Ltd., the largest foreign investment company with an advanced and organized transport system in Pakistan, to provide state‐of‐the‐art electronic cash management solutions 
  • NEPRA is all set to increase hydroelectric power rates by PKR1.18 / unit for FY13‐14 and PKR2.20/ unit under the monthly fuel adjustment formula
  • SSGC has requested the OGRA, the regulator for the oil and gas sector, to increase the price of gas by PKR31.56/mmbtu for all categories of consumers (ie domestic, commercial and industrial) with effect from July 1 
  • SECP has filed a criminal complaint in the competent court of law against six companies and 17 individuals involved in manipulation of ANL share price and volume through means which constitute acts, practices or omissions that operated as a fraud, deceit in terms of Section 17(e)(ii) to (v) of the SEO 1969. The list of accused includes JSGCL, JSCL, Jahangir Siddiqui and Sons Ltd, Jahangir Siddiqui Securities Services Ltd, JSIL), Aziz Fidahussain Ltd
  • A downward revision in the rate of the property tax is on the cards and it would be brought at 10% instead of 25%
  • The gold imports during 9MFY13 surged by 33.49% as against the same period of last year. PBS, during the period under review, 2,942KG yellow metal worth of USD159.172mn was imported as compared to the import of 2,236KG valuing USD119.239mn during same period of last year 2011‐12
  • The National Investment Trust (NIT) reportedly paid PRs12bn worth loan taken from financial institutions (including NBP, EOBI and SLIC) for setting up Pakistan State Enterprise Fund (NIT‐SEF) in Jan‐2009 to support the market 
  • State Bank of Pakistan released data on banking spreads (difference between weighted average lending and deposit rates) for March 2013 where spreads depicted an increase of 6bps MoM to 6.24% marking the first respite during past eight months during which spreads have shrunk by 96bps from 7.14% 
  • Analysts said that results of some energy and petroleum stocks were not according to the expectations and heavy selling was witnessed in these stocks
  • Most of the companies, which announced their March quarter results this week, included Allied Bank Limited, Hub Power Company, Fatima Fertilizer Limited, Engro Fertilizer, United Bank Limited, Kot Addu Power Company, Pakistan State Oil, Oil and Gas Development Company Limited, Nishat Mills Limited, Pak Suzuki Motor Company and Lotte Chemical Limited
  • Renewed buying interest in PSO, National Bank, Pak Suzuki Motor Company and Engro Corporation was also seen
  • Above-expected first quarter result announcements by Fatima Fertilizer Ltd and Engro Fertilizer Ltd and Engro’s revelation of plans to list the fertiliser company before the end of the current year

Top ten gainers of last week were: TRG Pakistan Ltd, Pak Tobacco Co, Muree Brewery Co, Shifa International Hospitals, Kohinoor Energy, International Industries, Bata (Pak) Ltd., International Steels, Thal Ltd and Pak Suzuki Motor.

Top ten losers of last week were: Pak Reinsurance, Javedan Corporation, Ghani Glass, Pak Services, Bank Of Khyber, Meezan Bank, JS Bank, EFU General Insurance, Hum Network and Millat Tractors.

Top ten volume leaders were: TRG, FCCL, ENGRO, PTC, LOTCHEM, NIB, JSCL, DAWH, DGKC, and EFOODS.

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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