Karachi Stock Exchange Weekly Analysis 6 Oct, 2013

The Karachi Stock Exchange (KSE) market trend was bearish, Banking stocks continue to keep KSE under pressure and weak sentiment weighs KSE down. KSE – 100 index closed at 22,085.96 points by losing -301.35 points or -1.35 percent. While KSE – 30 index closed at 16,777.11 points by losing -270.97 or -1.59 percent.

Activity in the market saw a steep decline, with average daily turnover falling to 149mn shares, down 19% WoW, whereas US$ value traded fell by 2% WoW. The week saw some FIPI inflows, with a net inflow of US$6.62mn during the week.

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

  • SBP decision to enhance the minimum deposit rate by 50bps to 6.5% which may push the banking spread towards the pre‐discount rate change level
  • Government of Pakistan decided to go ahead with privatization of SOEs in compliance with IMF conditions, where five SOEs including PIAA, Pakistan Steel Mills, PPL and National Insurance Company Limited will be privatized in the first phase 
  • NSS rates were raised by 120bps-180bps for most products
  • Government of Pakistan took back the decision to increase consumer power tariffs after a suo moto action taken by the Supreme Court
  • Ex-factory cement prices were raised by PkR15-PkR20/bag
  • Inflation numbers for the month stood at around 7.39%Y/Y which reduce the year to date inflation to around 8.06%
  • Government of Pakistan enhanced the return on National Saving Schemes (NSS) by nearly 1.25% 2.1%, which can be considered as a negative for alternative investment like stocks
  • Pakistan’s largest independent power producer Hubco is planning to convert its RFO power plant to coal
  • PTCL, a unit of UAE's Etisalat, has submitted a take‐over bid for rival mobile operator Warid Telecom, according to a filing with the KSE
  • The prices of petroleum products increased up to PRs5.57/ltr from Oct‐01, 2013
  • In its meeting held yesterday, ECC has decided to import 0.5mn tons of urea to meet the shortfall in the upcoming Rabi season

Top ten gainers of last week were: Hum Network Ltd, Century Paper, National Foods, Pak Tobacco Co., Clariant Pakistan Ltd, Agritech, Fauji Fert Bin, Pak Services, Pak Petroleum and Colgate Palmolive.

Top ten losers of last week were: EFU Life Assur Ltd., United Bank, Pak Suzuki Motor, Kohinoor Energy, Habib Bank Ltd, MCB Bank Ltd, Netsol Technologies, Kohinoor Textile, TPL Trakker Ltd and Soneri Bank.

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

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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