Karachi Stock Exchange Weekly Analysis 3 Nov, 2013

The Karachi Stock Exchange (KSE) market was bullish, on account of above expected corporate results. KSE – 100 index closed at 2 2,649.09 points by gaining 203.5 points or 0.91 percent. While KSE – 30 index closed at 17,238.26 points by gaining 179.96 or 1.05 percent. Average daily turnover fell by 14 percent on week-on-week basis to 115 million shares against 133 million shares, whereas the dollar value fell by nine percent on week-on-week basis.

The KSE-100 Index closed the week at 22,649 points, up by 0.91%WoW with average daily traded volumes clocking in at 115mn shares, down 13.64%WoW. The index heavyweight MCB Bank Limited and the Oil and Gas Development Company Limited remained the major supporters to the rally.

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

  • Chief of TTP killed in a drone attack & likely revenge activity by TTP 
  • Expectations of Interest rate hike in upcoming November Monetary Policy
  • Any statements from the IMF team on quarterly review on Pakistan will also be eyed
  • With the MPS expected towards the end of next week, an expected hike in the DR could possibly put the Banking Sector in the limelight while companies with significant leverage could lose out
  • The KSE‐100 rose by 4.3% in the month of Oct‐13, with the main driver of the market being the resumption in foreign portfolio investment, with US$51mn of net portfolio investment during the month
  • PSO (+83%YoY), ENGRO (+1236%YoY) and NML (+48%YoY) were among the key blue chip companies that registered strong earnings growth
  • Interestingly foreign investors bought nearly USD50mn worth of stocks out of which nearly USD41.5mn worth of buying was made in the last ten days of the month while individuals and companies were on the selling side
  • BIPL has planned to issue rights shares up to PKR750mn, as the exemption granted by the SBP for MCR expired on March 31
  • Rising inflation coupled with rupee depreciation minimized the continuous swift import of Chinese brand mobiles and accessories in the first quarter of the 1QFY14 as the overall telecom sector imports declined by 14.46 % 
  • NFDC released its monthly report on 28th Oct, indicating urea sales have jumped 91% YoY to 504k tons while DAP sales were down 19% YoY during the month of Sep‐13 
  • Foreigners aided the index’s growth and the market saw foreign buying worth $18 million during the week
  • The country's liquid foreign reserves rose by US$267mn mainly due to arrival of Collation Support Fund (CSF) inflows of US$322mn
  • Drug Regulatory Authority (DRA) will announce an increase in prices of generic pharmaceuticals next week
  • Expected submission of Pakistan’s request for the EU GSP Plus Status to the EU Parliament later this month
  • The fertiliser sector was back in the limelight as resumption of regular gas supply to fertiliser plants meant a return to normal production levels, resulting in huge gains for Engro Fertilizers and Fatima Fertilizers. Fauji Fertilizer Company, which was less affected by the gas outages, also managed to post earnings above expectations, triggering buying in its stock
  • Pakistan State Oil, Bank Alfalah Limited, National Bank of Pakistan, Nishat Chunian Limited, Nishat Chunian Power Limited, Fatima Fertilizer, Maple Leaf Cement, Engro Corporation, Pakistan Petroleum Limited and Fauji Fertilizer Company were among the blue-chips, which announced their above expectation results

Top ten gainers of last week were: Colgate Palmolive, Century Paper, Nestle Pakistan, Siemens Pak Engg., National Foods, Arif Habib Corp, Attock Cement Ltd, Allied Bank, J.D.W.Sugar and Nishat Power Ltd.

Top ten losers of last week were: JS Bank Ltd, Jah.Sidd. Co., Netsol Technologies, Tri‐Pack Films Limited, Shifa International Hospitals, Thal Limited, Azgard Nine, Cherat Cement, Kohinoor Textile and TRG Pakistan Ltd.

Top ten volume leaders were: JSCL, PTC, BOP, ENGRO, NBP, FCCL, DGKC, EFOODS, MLCF, and PSO.

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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