Karachi Stock Exchange Weekly Analysis 23 Nov, 2013

The Karachi Stock Exchange (KSE) market was bullish and defies discount rate hike. KSE - 100 index closed at  23,847.57 points by gaining 560.51 points or 2.41 percent with average daily traded volumes witnessing an uptick of 16% WoW to 178 million shares. While KSE - 30 index closed at  17,982.65 points by gaining 334.89. The KSE-100 index for the first time hit the 24k level on Wednesday during the intraday trading while benchmark closed at 23.8k level

Activity improved from last week levels, with average daily turnover rising to 178 million shares, up 10.6% WoW, whereas US$ value traded rose by 32% WoW. The week saw significant FIPI net inflows of US$ 10.3 million.

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

  • Pakistan and IMF concluded the first review of the EFF program for release of the second tranche of US$550mn by Dec 2013
  • State Bank of Pakistan reserves fell to a 5-year low of US$ 3.65 billion
  • The Ministry of Petroleum initiated work on a plan to explore shale gas/oil reserves in the country
  • PTA blocked 0.2mn IPs involved in grey traffic in the first month after installation of the IMEI devices while white traffic increased by 8%
  • Pakistan International Airlines (PIA) has inducted two latest, state‐of‐the‐art Boeing 737‐800 into its fleet. The fuel‐efficient aircraft of Boeing 737 NG Family will benefit PIA in terms of fuel efficiency and savings
  • Pakistan International Airlines Corporation (PIA) has penned a deal that involves it raising US$130mn through a Shariah compliant financing facility. The National Bank of Pakistan (NBP) is a major participant in this deal contributing US$60mn
  • NBP has re‐launched its Islamic Banking with tagged "Aitemaad" to extend Sharia financial service
  • Pakistan’s oil production that was 77kbopd (thousand barrels of oil per day) at the beginning of 2013 has reached 82kbopd; a seven percent increase
  • In the outgoing week PTCL breached the PKR 30/share level after a long time. PSO continued to outperform the market as the stock comfortably crossed the PKR300/level and reached a price of PKR 312/share
  • We believe over the weekend the government is likely to make an announcement of the new Army chief and JCSCS which may clear the political hustle bustle
  • The first phase of initial public offering (IPO) of Engro Fertilizer was carried out during the week, with offer of 56.25mn shares of the issue. The issue was oversubscribed by 3.9times. A strike price of PRs28.25/share (floor price: PRs20/share) was determined
  • The PML‐N led government is going to distribute 750,000 laptops among public sector university students all over the country in the next five years
  • In the wake of poor response in filing of tax returns in tax year 2013, the government has exempted the filing of wealth statement and wealth reconciliation statement for taxpayers having less than PKR1mn of income or value of assets 
  • Tractor sales continued to remain in the red while sale of buses, trucks, jeeps and pick‐ups improved in July‐October 2013 as compared to the same period last year
  • Teledensity in Pakistan including fixed, WLL and mobile phone has reached all‐time high level of 75.77% while total mobile service subscribers have reached 129.6mn across the country by the end of September 2013
  • Reduction in Current Account Deficit to US$166mn in October 2013 from US$574mn in September 2013

Top ten gainers of last week were: Pak Tobacco, Shifa International Hospitals, Adamjee Ins, Rafhan Maize Prod., Netsol Technologies, Mari Petroleum, Pak Services, Lafarge Pakistan, Siemens Pak Engg. and IGI Insurance.

Top ten losers of last week were: JS Bank Ltd, B.O.Punjab, Askari Bank Ltd., Feroz 1888 Mills Ltd, Allied Rental Mod, Agriautos Industries, Faysal Bank, NIB Bank, Kohinoor Energy and J.D.W.Sugar.

Top ten volume leaders were: PTC, FCCL, LPCL, JSCL, ENGRO, BOP, DGKC, MLCF, NCPL, and AICL.

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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