Karachi Stock Exchange Weekly Analysis 23 Mar, 2014

The Karachi Stock Exchange (KSE) market activity was bearish, Oil & Gas sector drags index lower. KSE - 100 index closed at 26,765.49 points by losing -358.98 points or -1.32 percent. While KSE – 30 index closed at 18,990.38 by losing -589.05 or -3.01%.

Market activity remained lackluster with average daily turnover falling by 33.2% WoW to 189mn shares; whereas US$ value traded declined 28.6% WoW to US$85mn.

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

  • The State Bank of Pakistan’s (SBP) decision to keep interest rates unchanged in its Monetary Policy Statement (MPS) held over the last weekend may also have had a contributing hand in this week’s sluggish equity market, where pre MPS conviction on a rate cut was high
  • The benchmark index lost 1.3% during the week primarily led by OGDC (-6.9%). The last trading day of the week dragged the index into red where the index lost 1.4% after remaining mostly flat during the week. Index heavy OGDC dragged the index by 230 points. While PPL chipped in to the negative momentum (-5.8%) contributing 110 points to the decline
  • Trading activity took a breather during the week with average daily volume of 144mn shares, ↓35% WoW
  • Foreigners’ remained net sellers during the week and sold shares worth USD9.5mn, up from USD3.8mn during the previous week
  • IMF likely to approve third tranche of USD550m for Pakistan
  • Sharp boost in reserves is credit positive: Moody's
  • A steady trickle of foreign selling, where barring a one-off UBL transaction gross foreign selling this week stood at US$47.3mn vs. US$37.3mn buying (net sell: US$10mn)
  • Slowdown in stock specific triggers as the Dec-13 result season has tapered off and Mar-14 results are still about a month off
  • The import of used vehicles (above 800cc to 3,000cc) plunged to 14,903 units in 8MFY14, down 61% YoY from 37,952 units during the same period last year. The massive decline in used cars import brought a respite to the local car industry, which recorded a 3.5% increase in sales during 8MFY14 
  • The Indus Motor Co., assembler of Toyota range of cars and commercial vehicles, has reduced the prices of vehicles by PRs50k‐PRs75k due to the recent strengthening of the rupee against the dollar 
  • FBR decided to withdraw additional 2% GST on auto parts this week and apply the withdrawal retrospectively
  • LSM sector posted modest growth of 2.6%YoY in Jan’14, bringing 7MFY14 LSM growth to 6.05%YoY
  • The federal government has fixed the price of imported urea at Rs1,786 per bag to uniform the market prices after considering all the incidentals and financial cost of the imported urea 
  • Kuwait's Noor Financial Investment Co said the proposed sale of its stake in Karachi‐based Meezan Bank had been blocked by State Bank, which felt the prospective buyer had not met its standards for suitability

Top ten gainers of last week were: Pak Tobacco Co.XD, Sui North Gas Pipe., Sui South Gas, Century Paper, Arif Habib Corp, Int. Ind.Ltd, Pak Reinsurance, International Steels Ltd, Shell Pakistan and Javedan Corporation.

Top ten losers of last week were: Archroma Pakistan, Stand.Chart.Bank, TPL Trakker Ltd, Fauji Fert BinXD, Bank Al‐Falah, Oil and Gas Deve, Pak Suzuki Motor, Lucky Cement, Shifa International Hospitals and Pak Petroleum.

Top ten volume leaders were: FABL, TRG, LPCL, FCCL, SSGC, BAFL, BOP, MLCF, SNGP, and FATIMA.

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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