Karachi Stock Exchange Weekly Analysis 14 Dec, 2013

The Karachi Stock Exchange (KSE) market was bullish, closing the week above the 25,000 points week for the first time. KSE - 100 index closed at 25,256.70 points by gaining 386.15 points or 1.55 percent, while KSE - 30 index closed at 18,865.68 points by gaining 240.69 or 1.29 percent. It is the first time, in the KSE-100’s 22-year history, that it has crossed 25,000 points. The index has put in a strong performance in 2013 and increased 9,149 points (42.3%) on its way to a record high of 25,256 points at the end of this week.

Volumes picked up significantly during the week as investors continued to exhibit confidence in the market with average daily traded volumes during the week clocking in at 211.2mn shares, up 8.66%WoW. According to analysts, market might continue positive trend next week.

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

  • EU parliament’s decision to grant GSP plus status to Pakistan was well cherished by equities as the benchmark KSE 100 index closed at a new high churning a record 220mn+ shares
  • Top gainers were textile sector companies lagged in the rally leading up to GSP plus award date
  • Most importantly, the status will allow Pakistan to export textiles to the EU free of import duties resulting in a strong rally for the textile sector on Friday
  • The possible provision of concessionary gas rate to Engro’s fertilizer business for its Enven plant
  • 1QFY14 GDP growth clocking in at 5% vs. 2.9% last year boosted investor sentiment at the local bourse
  • SBP's reserves slip below US$3bn
  • Car Sales Shrink by 2% MoM ‐ 5MFY14
  • Motorcycle industry grew 5% in FY14
  • The suspension and subsequent restoration of gas to all consumers excluding CNGs and IPPs
  • Announcement by the government regarding non materialization of the Iran-Pakistan gas pipeline project
  • Approval of US$900mn loan by ADB for coal power generation unit in Jamshoro
  • Fertilizer names Fauji bin Qasim FFBL, Fatima fertilizer and Engro Corp were also in limelight after Finance Minister announced to exempt the fertilizer sector from gas price hike due in January 2014
  • Reports of a possible hike in distribution margin for oil marketing companies kept investor interest alive in Pakistan State Oil
  • FBR will implement the new STR Dec 31, 2013 to do away with existing faulty/defective system, lacking proper physical verification of the declared business premises of the applicants seeking STRN 
  • Shaheen Air plans to enhance its fleet up to 25 aircraft
  • MoP has stated that from January 2014 gas tariff for all consumers excluding domestic consumers will go up
  • Etisalat team will visit Pakistan on December 18, which will keep investors interested in PTCL
  • The IMF meeting is taking place on December 19 in which the release of the next tranche worth $550 million will be decided
  • In dollar terms, the value traded declined by 14.8 percent. The week saw foreign portfolio investment inflows of $6.07 million against $6.2 million last week
  • The market mostly remained positive throughout the week with the exception of Tuesday when selling orders were witnessed on the statement of the US defence secretary for halting the funding if Nato supplies were not allowed from the Pakistani route
  • The star performer of the week was the fertiliser sector as Engro Fertilizer took centre-stage on news that the Ministry of Finance had agreed to supply its new Enven plant with gas from the Mari gas field, at a concessionary rate of 70 cents per mmbtu
  • Engro Fertilizers also announced that it will conduct the Initial Public Offering of the company’s stock in the upcoming week. The news resulted in heavy buying in Engro Corporation’s stock during the week
  • Pakistan’s quarterly gross domestic product (GDP) was recorded at 5.0 percent as against 2.9 percent in the same period last year, this also compared favourably against average 5-year GDP growth of 2.9 percent

Top ten gainers of last week were: Azgard Nine, Mari Petroleum, Engro Foods Ltd, Kohinoor Textile, J.D.W.Sugar, Century Paper, Thal Limited, Pakistan Cables, JS Bank Ltd and Adamjee Ins.

Top ten losers of last week were: Pak Services, Hum Network Ltd, Nestle Pakistan, Tri‐Pack Films Limited, Ghani Glass, Archroma Pakistan, Siemens Pak Engg., IGI Insurance, Nishat Chunian Power and Soneri Bank.

Top ten volume leaders were: JSCL, PTC, ANL, FCCL, DGKC, BAFL, NCPL, ENGRO, NCL and LOTCHEM.

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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