Karachi Stock Exchange Weekly Analysis 5 Jan, 2014

The Karachi Stock Exchange (KSE) market was bullish and KSE closes at an all time high level. KSE-100 celebrates New Year topping 26,000. KSE - 100 index closed at 26,046.71 points by gaining +788.66 points or +3.12 percent, with average daily traded volumes increasing by 35.3%WoW to 272.3mn shares. KSE - 30 index closed at 19,355.40 points by gaining +510.28 or +2.71 percent.

Average daily turnover improved by 49 percent on week-on-week basis to 272 million shares against 183 million shares, whereas in the rupee terms, the value traded improved by 26 percent on week-on-week basis to Rs8.6 billion against Rs6.8 billion last week.

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

  • Index performance was primarily driven by lower than expected CPI inflation for Dec-13, which was announced on 1st Jan. Dec-13 CPI inflation clocked in at 9.2% YoY as aggregate prices eased by 1.3% MoM
  • Market participants now expect status quo in the upcoming monetary policy announcement, as opposed to the previous expectations of a 50-100bps hike
  • Activity also picked up with KSE-100 trading an average of 169mn shares, +54% from the previous week, while USD value traded jumped 24%
  • Main index drivers remained the Oil & Gas +2.5% and Banking sector +2% driven by 2.5% and 4.3% gains in OGDC PA and MCB PA respectively
  • There was improvement in FX reserves due to receipt of the second IMF tranche. SBP's reserves improved by US$ 464 million to US$ 3.66 billion
  • Prime Minister Nawaz Sharif reconstituted the board of the Privatization Commission
  • GoP raised GIDS on gas supplies for fertilizer manufacturers and industrial consumers
  • NFDC announced fertilizer offtake and production numbers for Nov-13. Urea offtake increased by 69% YoY in Nov-13 while DAP sales jumped by 63% YoY
  • Pakistan is expected to receive loan disbursements for the Neelum-Jhelum project from this month
  • EU awarded GSP Plus status which boosted the performance of textile sector. In a surprise move
  • SSGCL has suspended 45 mmcfd gas supplies to FFC, owing to low pressure, so as to cope with the domestic sector demand
  • Around 4,000 applicants have fulfilled the criteria of PM Youth Business Loan Scheme, according to banking sources involved in the scrutiny of applications. NBP has finalized 4,000 applications while another 10,000 are in the pipeline. Around 15,000 applications are expected to be finalized in the first week of January which would later be sent to Islamabad 
  • NBP Bangladesh operation is feared to have sustained PKR12bn in losses, which, initial findings of bank’s BoD, is a result of “lax management”, forcing the BoD to order an inquiry as it tries to minimize the damages
  • Suzuki car prices rise by up to PKR 20,000
  • Foreign exchange reserves improving by US$ 431 million to US$ 8.52 billion
  • Large Scale Manufacturing (LSM) posting a growth of 5.7%YoY during 4MFY14 compared to the same period last year
  • Prime Minister Nawaz Sharif has approved the proposal to hand over the affairs of Peshawar Electric Supply Company (PESCO) to Pakistan Tehrik‐e‐Insaf (PTI)‐led coalition provincial government of Khyber Pakhtunkhwa 
  • The second quarter of the fiscal year 2014 results were due from the coming week and they are likely to remain good, which will draw investors attention towards buying in such stocks

Top ten gainers of last week were: J.D.W.Sugar, National Foods, Azgard Nine, Bata (Pak) Ltd., Thal Limited, TRG Pakistan Ltd, Pak Tobacco Co, Grays Of Combridge, Jah.Sidd. Co. and Packages Limited.

Top ten losers of last week were: Shifa International Hospitals, Agriautos Industries, Kohinoor Energy, Pakistan Cables, Siemens Pak Engg., Allied Rental Mod, Pak.Int.Con., IGI Insurance, Ghani Glass and Hum Network Ltd.

Top ten volume leaders were: ANL, FCCL, MLCF, JSCL, PTC, DGKC, TRG, BOP, BAFL, and NCPL.

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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