Karachi Stock Exchange Weekly Analysis 2 June, 2013

The Karachi Stock Exchange (KSE) benchmark witnessed a mixed trend but still managed an accumulative gain of 540 points and maintained its record-breaking streak. KSE – 100 index closed at 21,823.05 points by gaining 540 points or 2.5 percent. Average trading volumes also improved by 5.2 percent week on week to 462 million shares against 439 million shares last week. This week foreign portfolio investment remained at $11.89 million.

According to analysts, market will witness mixed trend in next week as well, because there was no new development at the economic front. The market will move according to the policy announcements of new government. Investors maintained their confidence level on the back of PML-N’s pro-business stance and hopes on the resolution of the energy crisis in the country. Investors will focus on announcement regarding consumer price index, upcoming monetary policy, and budget related developments.

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

  • PML-N was planning to issue five billion rupees treasury bills in order to clear the circular debts
  • Nawaz Sharif gave statement to prioritise energy sector in his tenure, which invited interest of investors in energy sector
  • Though foreign fund investment decreased in the week, it still continued in energy and other blue-chip stocks. Foreign buyers diverted their investment from Unilever Pakistan after its buyback from the stock exchanges in the country
  • Pakistan State Oil, Pakistan Petroleum Limited, Oil and Gas Development Company and MCB Bank Ltd saw more foreign buying this week. While local investors were also seen highly active in mid-cap stocks like Fauji Cement, Dawood Cement, NIB and BOP
  • Federal Board of Revenue (FBR) withdrew the zero-rated facility on dairy and other products but this news could not break positive momentum at the stock exchange
  • The banking sector remained under pressure since it pushed down the market by 0.5 percent mainly on the grounds of risk of further shrinkage in spreads in case of further cut in discount rate in the monetary policy
  • Sentiment in Bank of Punjab is associated with the PML-N government and likelihood of improvement in financial health
  • Sartaj Aziz said, GST could be raised to 17% by new government
  • Analysts predict CPI inflation between 4.79% to 5.07% in May, as food and energy prices remained stable during the month
  • Jehangir Siddiqui Group denied that the JSBL was under any investigation by the SECP in relation to shares of ANL. This was in reference to the story published on May 28, 2013, which cited letters written by the NAB, chairman SECP, NBP and others 
  • Pakistan can get a massive blow to its remittances as KSA has declared 30,000 Pakistani expatriates illegal immigrants following new employment law Nitaqat

Top ten gainers of last week were: B.O.Punjab, NIB Bank, Pak Services, Hum Network, TRG Pakistan Ltd, GlaxoSmithKline Pak., Jah.Sidd. Co., Mari Petroleum, Indus Motor and Bankislami Pakistan.

Top ten losers of last week were: Ghani Glass, Muree Brewery Co, Javedan Corporation, Bata (Pak) Ltd., JS Growth Fund, Shifa International Hospitals, Allied Bank, TPL Trakker Ltd, Thal Ltd and Dawood Hercules Corp.

Top ten volume leaders were: BOP, TRG, PTC, NIB, JSCL, FCCL, PACE, KESC, LOTCHEM, 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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