Karachi Stock Exchange Weekly Analysis 14 Nov, 2013

The Karachi Stock Exchange (KSE) market remains flattish as 50bp DR hike is announced. KSE – 100 index closed at  23,287 points by losing -80.15 points or -0.3 percent. While KSE – 30 index closed at 17647.76 points by losing -197.34.

Activity improved from last week levels, with average daily turnover rising to 161mn shares, up 28% WoW, whereas US$ value traded rose by 12% WoW. The week saw significant FIPI net inflows continuing of US$11.3mn, although US$8.5mn was accounted for in an off-market transaction of Siemens Pakistan.

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

  • State Bank of Pakistan continues its monetary tightening stance having announced 50bps hike in the Discount Rate (DR) to 10%.
  • In its efforts to curb grey traffic, PTA has blocked more than 200,000 IP addresses, 1,382 mobile SIMs and 3,160 phones / devices through their International Mobile Equipment Identity (IMEI) numbers during the last one month
  • Overseas Pakistani workers sent home US$5.276bn in the first four months of current fiscal year, showing a growth of 6.27% compared with US$4.964bn received in the same period of last year  
  • In the upcoming month government is scheduled to increase the gas tariff in accordance with IMF conditions (possible), which is likely to enhance the cost of production
  • Investors are anxiously waiting for the IPO of Engro Fertilizer via book building process. Majority of the analyst estimate value of the company in the range of PKR27‐35/share. We are still waiting for the ECC decision where government is likely to decide on the concessional gas rates for ENGRO 
  • Surprisingly AICL announced a windfall bonus payout of nearly 182% which is likely to enhance the capital base of the company
  • Iran's state‐owned gas company has said it is ready to revise the price of the commodity for Pakistan. NIGC MD the gas price has not yet been fixed and can be changed A few days ago Iran hinted at scraping deal with Islamabad 
  • Islamabad intends to seek from help from the US for the exploration of gas reserves, as well as credit lines for the construction of the Diamer‐Basha dam, MOP. Technical help is being sought for reliable oil and gas reserves assessment along with technology and expertise to exploit shale gas reserves 
  • KP government, as part of its industrial policy, will provide cheaper electricity to prospective investors to spur industrialization, Provincial minister for industries, commerce and labour
  • Curiosity over acquisition of Warid in the telecom sector of the country is gaining more impetus as the favorite contender, PTCL, confirmed on that it has not yet submitted a ‘binding offer’ to Warid Telecom 
  • IMC increased prices of different Toyota vehicles by PKR21,000 to PKR75,000. APMDA, the price of Toyota Corolla Xli and GLi has been raised by PKR21,000 each followed by PKR35,000 in Toyota Altis and PKR75,000 in Vigo Champ

Top ten gainers of last week were: Shifa International Hospitals, Adamjee Ins, Askari Bank Ltd., B.O.Punjab, National Bank of Pak, Siemens Pak Engg., NIB Bank, Faysal Bank, Habib Bank Ltd and Soneri Bank.

Top ten losers of last week were: Allied Rental Mod, Azgard Nine, Fauji Fertilizer Co., Hub Power, Thal Limited, Pak Services, Hum Network Ltd, Jah.Sidd. Co., ICI Pakistan and Grays Of Cambridge.

Top ten volume leaders were: JSCL, BOP, FCCL, NBP, PTC, MLCF, ENGRO, DGKC, BAFL, 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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