Karachi Stock Exchange Weekly Analysis 8 Dec, 2013

The Karachi Stock Exchange (KSE) market was bullish, foreign flows trump macros to boost. KSE - 100 index closed at 24,870.55 points by gaining 568.36 points or 2.34 percent, while it breached the 25,000 points mark during intraday trading on the last trading day. KSE - 30 index closed at 18,624.99 points by gaining 378.98 or 2.08 percent.

Activity increased from last week levels, with average daily turnover surging to 193.4 million shares, up 45.6% WoW, whereas US$ value traded increased by 47.4% WoW. The week saw FIPI net inflow of US$ 6.2 million. According to experts, market is performing well because of revival of corporate earnings, capital gain taxation amnesty scheme along with its automation, swift change of political regime and attractive valuation in contrast with regional peers.

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

  • Government has approved 28 construction and development projects worth PKR 245 billion
  • ECC held back the decision to announce the gas load management program for winters
  • Some EU countries voted against the GSP Plus status to be clubbed together for beneficiary countries, including Pakistan. Clouds of uncertainty still loom large on Pakistan's Generalized System of Preferences (GSP+) plus status Portugal, Croatia, Bulgaria, Poland, France are amongst the 12 countries who oppose trade concessions to Pakistan
  • The MPNR suggested removal of deemed duty on HSD for refineries
  • Government sought early disbursement of CSF funds from USA amid swiftly deteriorating foreign exchange reserves
  • CPI inflation numbers for November 2013 came in above expected at 10.9% YoY
  • Pak foreign exchange reserves slipped by a further US$557mn during the week to the US$ 8.24 billion mark
  • Media reports suggested that Pakistan is unlikely to receive the much-awaited US$ 800 million on account of PTC privatization from Etisalat
  • The bright spot for the Karachi Stock Exchange proved to be seemingly unremitting foreign portfolio investment inflows (FIPI), where net FIPI flow at the KSE this week clocked in at US$6.0mn (gross inflow of US$51.9mn) vis-a-vis US$8.5mn net FIPI outflow reported last week 
  • November 2013 oil sales up 14% YoY, because of a seasonal pick up in HSD sales owing to the arrival of the Kharif (summer crop) harvesting season and rising demand for Motor Gasoline due to increase in gas load shedding at CNG pumps
  • Preliminary fertilizer offtake figures for November 2013 reveal that Pak urea offtake has clocked in at a whopping 530k tons, +62%YoY and +11%MoM
  • Punjab Food Authority has banned the distribution and sale of Dairy Omung of Engro Foods on account of usage of adulterants to thicken the contents and to give texture of milk 
  • On the political front, PTI government in KP has continued with its NATO supply blockade which has forced US to withdraw supplies through Pakistan’s Torkham border
  • 5MFY14 tax collection stands at PRs806bn against the target of PRs841bn (shortfall of PRs 35 billion)
  • PIA has finalized acquisition (dry‐lease) of 10 fuel‐efficient aircraft that will start reaching Pakistan by April 2014
  • Atlas Honda Limited has planned to invest PKR600mn for the expansion of its motorcycle manufacturing unit
  • Cement dispatches have posted a 6% MoM decline in Nov to 2.6mn tons, mainly on account of 3% MoM drop in domestic demand along with 16% MoM attrition in export volumes, provisional figures show

Top ten gainers of last week were: Bata (Pak) Ltd., Hum Network Ltd, Siemens Pak Engg., Muree Brewery Co Ltd, Tri‐Pack Films Limited, Soneri Bank, Thal Limited, Feroz 1888 Mills Ltd, Century Paper and Pace (Pak) Ltd.

Top ten losers of last week were: Pak Services, Agritech, Attock Cement Ltd, Dawood Hercules Chem, K.E.S.C., Netsol Technologie, Nishat Chunian, Pak.Int.Con., Faysal Bank and EFU Life Assur Ltd.

Top ten volume leaders were: FCCL, PTC, BAFL, ENGRO, MLCF, NBP, JSCL, DGKC and PPL.

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

No comments:

Post a Comment