Karachi Stock Exchange Weekly Analysis 1 Feb, 2014

The Karachi Stock Exchange (KSE) market sentiment was bearish. KSE - 100 index closed at 26,784.34 points by losing -218.55 points or -0.81 percent with average daily turnover coming off by 3.48%WoW to 299.5mn shares. While KSE - 30 index closed at 19,296.75 points by losing -304.85 or -1.56 percent.

The result season should continue to drive market sentiment going ahead, where key results next week include PTC, EFERT and EPCL. Moreover, with expectations of soft CPI numbers for Jan’14, we expect market sentiment to remain buoyed with leveraged sectors such as Cements and Textiles expected to be in the spotlight.

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

  • Strategic dialogue between Pakistan and the US commenced while the US stated that the next tranche of US$352mn under the CSF has been approved with disbursement likely by Feb 6’14
  • Strong recovery in urea and DAP sales seen in 2013
  • Corporate results will continue to drive the market direction, with PTCL and Engro Fertilizer reporting results next week
  • The SBP governor Yaseen Anwar resigned, the third consecutive central bank governor to tender an early resignation
  • IMF announced the next review of Pakistan’s program to be held in Dubai from Feb 1’14 onwards
  • Chinese investors expressed keen interest in Pakistan’s textile space
  • China gives first installment of USD448mn for Neelum‐Jhelum project
  • SSGC has taken a major stride forward in curbing UFG levels, despite adverse conditions prevailing in its operational areas of Sindh and Balochistan
  • Pressure on emerging market equity and currency values was led by the US Fed’s plans to taper off its stimulus more sharply in the months ahead
  • The law & order situation across the country has continued to worsen with the government at a crossroads on whether to push for talks or take a hard-line approach towards terrorists
  • The country’s foreign exchange reserves continue to head down (dropped below US$8.0bn this week) amidst a seemingly infirm plan of action (option of public vs. sole offering of government stake in OGDC, ABL, HBL and UBL debated in the media) on the privatization of State Owned Enterprises (SOEs)

Top ten gainers of last week were: IGI Insurance, Feroz 1888 Mills Ltd, Nestle Pakistan, Packages Limited, Azgard Nine, B.O.Punjab, EFU General Ins, Jubilee Gen Ins, International Steels Ltd and Fauji Cement Company.

Top ten losers of last week were: Pakistan Cables, Rafhan Maize Prod., TPL Trakker Ltd, Grays Of Combridge, Lotte Chemical Pakistan Ltd, Ghani Glass, Engro Foods Ltd, Hum Network Ltd, Thal Limited and Stand.Chart.Bank.

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

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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