Karachi Stock Exchange Weekly Analysis 1 Mar, 2014

The Karachi Stock Exchange (KSE) market activity was lackluster and kept index range bound. The bears finally gave way to stability. KSE - 100 index closed at 2 5,783.28 points by gaining 179.93 points or 0.70 percent. While KSE – 30 index closed at 18,755.18 by gaining 127.59 or 0.68%.

Market activity continued to remain lackluster, with average daily turnover rising by mere 7.0% WoW to 217mn shares; whereas US$ value traded fell 3.8% WoW to US$64mn. Eventful month of February is finally over with a loss of nearly 824 points or 3.1% largely back by weak financial result of major corporate along with geo-political uncertainty that came in to play. We believe prudent investors are likely to wait for the bearish tide to settle before reinvestment in the market.

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

  • Continued aerial bombings of terrorist hideouts post the suspension of peace talks with the TTP
  • China’s plans to invest US$1.66bn over the next 2-3 years to fully develop the Gawadar Port
  • TRG posted an astonishing return of 15% in the outgoing week while booking an over 40% return in the month
  • Major results including OGDC, HBL, INDU and LUCK remained largely in line with expectations
  • As the series of Oct-Dec results will soon end with the National Bank of Pakistan, MEBL and PSMC will report results next week
  • PSO financial results can be considered as a power booster for the market
  • Habib Bank Limited (HBL) posted consolidated earnings of PRs22.9bn (EPS: PRs17.15) in CY13, up by 0.8% YoY. 22% YoY higher fee income to PRs8.3bn helped offset 5% YoY decline in net mark‐up income
  • As the series of Oct‐Dec results will soon be behind us with NBP, MEBL and PSMC to report results next week
  • News related to price hike of cement generates hefty interest in cement stocks
  • Government announced the tentative date of April 2014 for auction of 3G spectrum licenses, which was unable to boost telecom stocks
  • The federal government has decided to import 125,000mn metric tons of urea fertilizer for Kharif season 2014, while the MoIP forecasted almost half a million metric tons of urea shortage for the season, revealed official documents 
  • IPO: Hascol (HPL) ready to make stock market debut 
  • Petroleum Exploration, a private sector Pakistani company has made a significant discovery of oil and gas in its Badin South IV Concession Block
  • SBP has granted permission to MEBL (Meezan Bank) to conduct due diligence of HSBC Pakistan operations for its acquisition
  • Pakistan is expected to import a total of 2.5mn bales during the FY14
  • The week saw a net FIPI inflow of a US$5.51mn taking February inflow to US$9.52mn

Top ten gainers of last week were: Pak Tobacco Co, Muree Brewery Co Ltd, TRG Pakistan Ltd, ICI Pakistan, EFU Life Assur Ltd., Lucky Cement, National Foods, Nestle Pakistan, Attock Cement Ltd and Maple Leaf Cement.

Top ten losers of last week were: Jah.Sidd. Co., Tri‐Pack Films Limited, Cherat Cement, Stand.Chart.Bank, Century Paper, Azgard Nine, JS Bank Ltd, Pak Services, Shell Pakistan and Kohinoor Energy.

Top ten volume leaders were: LPCL, TRG, MLCF, JSCL, FCCL, ENGRO, AICL, BOP, DGKC and BAFL.

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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