Karachi Stock Exchange Weekly Analysis 29 Mar, 2014

The Karachi Stock Exchange (KSE) market activity was bullish, Banks steal the show on record PIB issuance. KSE - 100 index closed at 27,116.13 points by gaining 350.64 points or 1.3 percent. While KSE – 30 index closed at 19,200.54 by gaining 210.16 points.

Market activity remained lackluster with average daily turnover falling by 19% WoW to 154mn shares; whereas US$ value traded declined 10% WoW to US$77mn. Trading activity further took a plunge during the week with average daily volume of 110mn shares, ↓24% WoW. Foreigners turned net buyers this week and bought shares worth USD0.91mn, as compared to net selling of USD9.5mn during the previous week.

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

  • The benchmark index emerged green during the week, gaining 1.3%, primarily led by the banking sector contributing more than 90% of week’s gains
  • UBL led within the sector which added a massive 132 points to the index, whereas OGDC (index heavy) remained in red
  • IMF disburses USD556mn loan tranche. And New loans of USD2.2bn to come in next two months
  • Urea sales for Feb-14 clocked in at 378k tons, down 10% YoY and 39% MoM primarily due to lower imported urea sales. Imported urea sales fell by 74% YoY which was partially offset by increase in sales of Engro Fertilizers. Urea sales for 2MCY14 clocked in at 998k tons, up 7% YoY
  • The upcoming inflation figure expected to be announced next week will set the direction of the market while market participants would also be watchful of foreign flows
  • On the basis of available numbers Y/Y inflation for the month of March may be in the range of 8.6% to 8.7% which may turn the YTD inflation to 8.65%
  • Change in investor mood and selection of sectors where banking sector was back in action with ABL, UBL, HMB, BAHL and FABL moving upwards
  • The GoP executed 15 more petroleum concession agreements and exploration licences with the OGDC. Total area of these blocks is spread over 32,357 square kilometres where at least $39.19 million will be invested
  • PTCL, the country’s largest ICT provider, introduced 4Mbps on Pakistan Day as a minimum benchmark for broadband speeds nationwide, a PTCL press release said on Monday
  • $500 million Eurobonds, first roadshow in Dubai next month
  • HCAR has reduced car prices by PKR30,000‐40,000 effective from March 26, 2014
  • Pakistan Petroleum Limited (PPL) has announced a gas discovery at Exploration Well, Naushahro Firoz X‐1 in Naushahro Firoz Block, Sindh
  • The Ministry of Finance has suggested that the Economic Coordination Committee (ECC) should keep a proposed increase in margins of oil marketing companies (OMCs) and dealers deferred and consider this later when petroleum product prices are on the decline

Top ten gainers of last week were: Rafhan Maize Prod., Pak Tobacco Co.XD, Allied Bank, United Bank, Habib Metro Bank, Muree Brewery Co Ltd, NIB Bank, National Foods, Bank AL‐Habib and Hum Network Ltd.

Top ten losers of last week were: EFU Life Assur Ltd., EFU General Ins, Sui North Gas Pipe., TRG Pakistan Ltd, Sui South Gas, Nishat Mills Limited, Nestle Pakistan, Shifa International Hospitals, Nishat Chunian and Kohinoor Textile.

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

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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