Karachi Stock Exchange Weekly Analysis 12 April, 2014

The Karachi Stock Exchange (KSE) market activity was bullish, Bulls assume control. KSE - 100 index closed at 29,249 points by gaining 842 points or 3.0 percent. Activity remained robust during the week with ADTO rise to 332mn shares, up 7% WoW; whereas US$ value traded increased by 18% WoW to US$134mn.

Trading activity maintained a dynamic trend followed by an already strong week and posted a 8.8% WoW increase in average volumes to 227mn shares. Foreign interest is primarily keeping the benchmark index buoyant whereby net foreign buying clocked in at USD34.8mn during the week. We expect market would likely be guided by result announcements while investors would also be watchful of foreign flows.

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

  • Optimism over euro bond issues along with PKR appreciation and anticipation over monetary easing drove benchmark index to grow by 3.0% WoW to 29,249pts
  • ENGRO, MCB, OGDC, PSO and PSEL were the primary index movers and increased by 11.0%, 3.8%, 2.7%, 6.8% and 27.6% respectively
  • Pakistan sells USD2bn bonds in world market
  • State Bank hints at lowering discount rate
  • According to Government, there will be no further delay in 3G/4G auction, expecting USD3bn inflow
  • Pakistan total cement sales were down 4.1% YoY in March‐2014 where domestic sales were down 3.7% and exports were down 5.6% YoY
  • Finance Minister Ishaq Dar has said the World Bank will provide US$10bn to Pakistan for development projects over the next five years
  • PKR with yet again rallied against the dollar after massive interest in the EURO bond and hit a lower level of PKR96.20/USD
  • GoP is expecting Rs140bn from the divestment of its shares in OGDCL, PPL and UBL by June’14. GoP has planned to offload 10% of its shares in OGDCL through GDRs and IPO, which is likely to bring PKR80 to 90bn
  • Best performers included banks on (expected Pakistan Investment Bond (PIB) yield gains) as well as beneficiaries of a strong Pakistani rupee such as the auto and pharma sectors
  • Remittances in the nine months of FY14 were reported at $11.6 billion, a growth of 11.9 percent on year-on-year basis over the same period last fiscal year
  • During the week, the ECC rejected the demand of the Power Ministry to divert 60mmcfd of gas from Engro to Guddu Power, earlier, Fatima Fertilizer had announced to invest up to $300 million in Midwest Fertilizer Corp (US), as an equity contribution by Fatima over a period of four years (2014-18)
  • Lafarge Group, which owns the parent company of Lafarge Pakistan, announced a merger with Holcim Group to create the largest cement player in the world

Top ten gainers of last week were: Pak Services, EFU General Ins, Shell Pakistan, Soneri Bank, Lafarge Pakistan, Agriautos Industries, Indus Motor, Tri‐Pack Films Limited, Pak Tobacco Co.XD and Pace (Pak) Ltd.

Top ten losers of last week were: Javedan Corporation, Kohinoor Textile, Muree Brewery Co Ltd, Cherat Cement, International Steels Ltd, Nestle Pakistan, TRG Pakistan Ltd, TPL Trakker Ltd, Fauji Fert BinXD and Kohat Cement

Top ten volume leaders were: LPCL, JSCL, BOP, PACE, FABL, FCCL, MLCF, NBP, ENGRO, TRG, and NIB.

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

1 comment:

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