Karachi Stock Exchange Weekly Analysis 29 Sep, 2013

The Karachi Stock Exchange (KSE) market trend was bearish, owing to the panic on the exchange rate front. KSE – 100 index closed at 2 2,387.31 points by losing -1208.30 points or -5.12 percent. While KSE – 30 index closed at 17,048.08 points by losing -1024.33 or -5.67 percent.

Activity in the market saw a steep decline, with average daily turnover falling to 183mn shares, down 25% WoW, whereas US$ value traded fell by 27% WoW. The week saw some FIPI outflows, with a net outflow of US$14.2mn during the week.

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

  • PKR witnessed an exceedingly weak spell of late, where at one point the exchange rate had crossed PKR110/USD in the inter bank market as a result the State Bank of Pakistan (SBP) had to intervene and injected US$50-60mn into the system when PKR recovered to PKR105.75/USD 
  • On Friday the SBP issued a circular notifying an increase in minimum savings deposit rate for all commercial banks to 6.5% from 6.0% previously. As a result most banks closed the day on the lower circuit breakers 
  • Nishat Mills Limited (NML) announced slightly above expected FY13 EPS of Rs16.63, up 66%YoY with a cash DPS of Rs 4
  • Bidding process for the sale of Abu Dhabi group’s Warid Telecom is expected to begin on September 30, 2013. Etisalat and Zong (China Mobile) have emerged as potential bidders for the acquisition of Warid which has 12.5mn subscribers, translating in to a market share of 10%
  • PM announced six schemes worth PKR18bn for the people. The schemes envisage provision of interest‐free micro loans, small business loans and technical training. PM in his televised address to the nation also solicited suggestions from people onwards to make the schemes transparent and successful  
  • MoF has released PKR1.5bn to PSM for payment of salaries and procurement of raw material, it is learnt. Presently, PSM is facing a serious financial crisis and salaries of employees have not been paid for last three months 
  • Islamic banking industry grew by nearly 7% during the second quarter of the CY13

Top ten gainers of last week were: Hum Network, Javedan Corporation, Shifa International Hospitals, Grays Of Combridge, TPL Trakker Ltd, Netsol Technologies, EFU General Insurance, Ghani Glass, National Foods and Sui South Gas.

Top ten losers of last week were: PICIC Growth, Maple Leaf Cement, Bank AL‐Habib, Habib Metro Bank, ICI Pakistan, United Bank, Attock Refinery, MCB Bank, Bank Al‐Falah and International Industries.

Top ten volume leaders were: BOP, NBP, PTC, MLCF, TRG, DGKC, SSGC, FCCL, BAFL, and PACE.

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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