Karachi Stock Exchange Weekly Analysis 9 Feb, 2014

The Karachi Stock Exchange (KSE) market  volatile and dropped by 0.4% during the week that ended on Feb 7th. Market volatility was primarily due to mixed sentiments during the week. KSE - 100 index closed at 26,681.78 points by losing -102.56 points or -0.38 percent with Average daily turnover came off by 5.33%WoW to 284mn shares but this remains a healthy run rate. While KSE - 30 index closed at 19,255.94 points by losing -40.81 or -0.21 percent.

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

  • Jan-14 CPI inflation clocking in at 7.9% was a positive while weakness in regional markets limited gains
  • Trading activity remained close to last week levels with KSE-100 trading an average of 170mn shares, +2% from the previous week
  • Buying by foreigners rebounded during the week as the investors bought stocks worth USD6.9mn on net basis as opposed to USD2.3mn during the previous week. In the outgoing week foreign investors invested nearly USD6.84mn in the market
  • Government and TTP committee held first peace talks
  • 10%  of OGDCL shares: sell-off likely to fetch USD850mn
  • Recommendation by the Senate Standing Committee to abolish GST on tractors
  • Announcement by the PTA Chairman that the PTA is targeting the third week of Mar’14 for the 3G/4G auction
  • In the upcoming week number of cement companies and banks are likely to disclose their financial results
  • In the upcoming week DGKC, ABL, ENGRO and MCB are likely to disclose their results where analyst are likely to disclose the earnings estimates soon
  • Thar coal project inaugurated, it's first step towards building capacity PM
  • SBP has decided to implement a uniform standard for cheque printing across the banking industry and prescribed guidelines relating to their layout
  • Experts attributed the crisis in tractor industry to imposition of sales tax, unwarranted increase in tractor prices, withdrawal of subsidies, and unavailability of bank financing
  • Pakistan’s cement exports to Afghanistan are on the decline as uncertainty looms in the neighboring country owing to expected withdrawal of Nato forces, and slow pace of new projects
  • Cement sales rising by 3%YoY in January 2014
  • Foreign exchange reserves increasing by US$23.5mn to US$8.02bn
  • PPL non‐operated well Tajjal South‐01 declared dry

Top ten gainers of last week were: Grays Of Combridge, Feroz 1888 Mills Ltd, Jah.Sidd. Co., Muree Brewery Co Ltd, Dawood Hercules Chem, Cherat Cement, TRG Pakistan Ltd, GlaxoSmithKline Pak., Kohinoor Energy and Allied Rental Mod.

Top ten losers of last week were: Nestle Pakistan, Pak Tobacco Co, Azgard Nine, Tri‐Pack Films Limited, Kohinoor Textile, Bata (Pak) Ltd., Soneri Bank, Ghani Glass, Colgate Palmolive and Attock Petroleum.

Top ten volume leaders were: JSCL, ANL, FCCL, KEL, TRG, BOP, MLCF, PACE, DGKC, 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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