Karachi Stock Exchange Weekly Analysis 16 Feb, 2014

The Karachi Stock Exchange (KSE) market volatile and dropped by 1.1% during the week. This was a 3rd negative week in a row at the KSE. KSE - 100 index closed at 26,394.13 points by losing -287.65 points or -1.1 percent.

Activity fell sharply from last week’s levels, with average daily turnover falling to 255mn shares, down 10% WoW; whereas US$ value traded declined by 2.2% WoW. The week saw a net FIPI outflow of US$5.57mn. According to analysts, market is likely to witness mixed trend next week, as it needed major trigger to push it upwards.

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

  • Hungarian Oil and Gas Company, MOL the operator of Tal block is all set to add 28mmcfd gas and 7,600bopd into the system from Makhori East‐III field (Tal Block) from 10th Feb. The country will also have 300tpd of LPG from February 20. Tal Block is jointly being explored by PPL (stake: 27.65%); OGDCL (stake: 27.65%); and POL (stake: 21%)
  • Pakistan is seeking a long‐term oil credit facility of about US$10bn from major oil suppliers Saudi Arabia and Kuwait, in order to address weakening foreign currency reserves and rising circular debt in the energy chain 
  • PSO reverts to buying oil products on FOB basis after court order
  • Corporate results continued to come in this week, with MCB, ABL, DGKC, ECORP, NPL and NML reporting results
  • Quarterly results will continue next week, with PSO, HUBC, KAPCO, UBL and ICI to report results
  • Apart from result announcements, the market is lacking triggers at the moment, and foreign inflows have also reduced
  • The outcome on peace talks with the Taliban is eagerly anticipated by both local and overseas investors
  • FX reserves fell by US$ 341 million during the week, taking SBP reserves at US$ 2.8 billion
  • Pakistan received US$352mn on account of CSF
  • Pakistan paid an IMF installment of US$ 147 million
  • Pakistan says expects to complete Eurobond issue by end‐March
  • Planning Commission has accused FM of delaying financial arrangements for the import of urea from the international market, which is one the reasons for the increase in prices in the local market
  • MCB has announced that the bank has reached an agreement with majority shareholders of BBL to invest in new and existing shares of the Islamic Bank
  • MCB announced that it intends to acquire a 55 percent stake in Burj Bank, pending regulatory approvals
  • Pakistan Steel losses accumulate to PKR103bn
  • The week saw foreign portfolio investment outflows of $5.56 million

Top ten gainers of last week were: Pak Tobacco Co, Rafhan Maize Prod., Dawood Hercules Chem, Askari Bank Ltd., Adamjee Ins, EFU General Ins, Pak Services, Arif Habib Corp, Sui South Gas and Allied Bank.

Top ten losers of last week were: Netsol Technologies, Muree Brewery Co Ltd, J.D.W.Sugar, Century Paper, ICI Pakistan, Thal Limited, National Foods, Int. Ind.Ltd, IGI Insurance and DG Khan Cement.

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

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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