Karachi Stock Exchange Weekly Analysis 30 Nov, 2013

The Karachi Stock Exchange (KSE) market was bullish and KSE closes at an all time high level. KSE - 100 index closed at  24,302.19 points by gaining 454.62 points or 1.91 percent while average daily traded volumes declined by 25%WoW to 133 million shares. KSE - 30 index closed at 18,246.01 points by gaining 263.36 or 1.46 percent.

We see inflation reading to guide direction early next week while foreign flows that are likely to pick up post thanksgiving holidays will remain crucial for market to sustain and consolidate above 24k. According to analysts, the market might witness a mixed trend next week.

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

  • PM Nawaz Sharif announced various tax incentives for businesses to boost investment activity in the country
  • PTA selected VPCML, a foreign consortium, as consultant for the upcoming 3G/4G license auction
  • GoP and ADB signed a US$430mn agreement to strengthen the BISP program
  • Key appointments of national importance were finalized in which the names of Lt. General Raheel Sharif (Chief of Army Staff), Lt. General Rashid Mahmood (Chairman Joint Chiefs of Staff Committee) and Justice Tassaduq Jillani (Chief Justice) were approved
  • PM ordered withdrawal of a notification which allowed an increase of up to 15% in medicine prices
  • Foreign exchange reserves dropped to US$8.8bn while SBP reserves fell to a 12-year low of US$3.4bn
  • Ground breaking of 2,200MW nuclear project occurred
  • NFDC figures for October 2013 reported urea offtake at 477k tons, up 104%YoY and down 5%MoM
  • The energy sector's circular debt has soared to PRs185bn and IPPs have once again raised concerns over non‐payment of their dues
  • Protest against Nato supplies restricted foreign investment
  • News regarding additional flow from Makori Field kept the oil sector in the limelight
  • On the back of increase in drugs’ prices, pharma stocks also performed well; however, with the prime minister’s order to cancel the notification positivity diminished
  • Telecom sector also rallied after the short listing of the adviser for the 3G licence auction
  • Investors’ interest was mainly seen in Engro Corp, FCCL, PTC, PSO, and cement stocks

Top ten gainers of last week were: Bata (Pak) Ltd., Rafhan Maize Prod., Grays Of Combridge, Pak Tobacco Co., Nestle Pakistan, Mari Petroleum, Kohinoor Textile, J.D.W.Sugar, ICI Pakistan and Packages Limited.

Top ten losers of last week were: Century Paper, B.O.Punjab, Feroz 1888 Mills Ltd, Soneri Bank, TRG Pakistan Ltd, International Steels Ltd, Adamjee Ins, Jubilee Gen Ins, TPL Trakker Ltd and Jah.Sidd. Co.

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

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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