Karachi Stock Exchange Weekly Analysis 26 April, 2014

The Karachi Stock Exchange (KSE) market remained range bound during the week, bearish momentum sustains despite positive news flow. KSE - 100 index closed at 28,850 by losing -220 points or -0.8 percent.

We expect next week’s results announcements, with results of index heavy stocks primarily OGDC, PSO, ENGRO, HUBCO, BAFL, BAHL and FFC due next week, to guide index momentum while investors should also be watchful of Apr-14 inflation figure which is likely to be announced next week. Volumes were very thin, with ADTO down 43% WoW to 209mn shares whereas daily value traded was down 31% WoW to US$101mn.
Following news have played vital role in Karachi Stock Market index movement:

  • Bearish momentum sustains despite positive news flow  
  • KSE-100 index remained volatile during the week and lost 0.8% WoW as investors preferred to book gains despite positive news flow with regarding privatization and completion of 3G/4G spectrum auction
  • Rest of the banking stocks did post healthy results while ABL outpaced the rest of its peers
  • The results of cement stocks were fairly mixed where DGKC posted lower earnings, LUCK outpaced its peers with exceptionally good earnings and CHCC also impressed the investors
  • NML declared its financial result which was far below expectations, largely on account of PKR appreciation along with industry dynamics
  • OGDCL, PPL and UBL; three consortia appointed as FAs
  • The negativity primarily emanated from ENGRO and PSO which lost 6.5% and 4.2% respectively and cumulatively dragged the index down by 105pts
  • PKR20bn paid to PSO by government for international payments
  • Trading activity took a breather declining by 45% WoW, averaging 142mn during the week
  • Foreigners continued to remain buyers during the week and bought stocks worth USD18.6mn, against USD7.5mn in the previous week
  • Long-delayed 3G, 4G auction; amount fetched below Dar's prediction
  • PIBs auction fetches PKR425bn
  • SBP's reserves up by USD2bn in a week 
  • Electricity prices are expected to be reduced by more than PRs1/unit retrospective from Mar‐14 due to rupee appreciation against the dollar 
  • MCB Bank will set up a wholly owned Islamic banking subsidiary while dropping plans to take a stake in Islamic lender Burj Bank, according to a filing with the KSE 
  • SBP is likely to declare the monetary policy decision where we can expect SBP can cut the rate by 50bps to 9.5%
  • PSMC introduced 1000 cc Suzuki Wagon R in Pakistan. MD Pak Suzuki that Suzuki Wagon R is recognized as a star product in Suzuki line up and has been highly successful throughout the world 

Top ten gainers of last week were: Kohinoor Energy, Packages Limited, Abbott Lab, Arif Habib Corp, Bata (Pak) Ltd., Jubilee Gen Ins, Kohat Cement, Attock Cement Ltd, Ghani Glass and GlaxoSmithKline Pak.

Top ten losers of last week were: Jah.Sidd. Co., Askari Bank Ltd., Pak.Int.Con, NIB Bank, Azgard Nine, Muree Brewery Co Ltd, Mari Petroleum, Pace (Pak) Ltd., P.T.C.L.A and Shell Pakistan.

Top ten volume leaders were: MLCF, LPCL, JSCL, BOP, FCCL, KEL, NBP, PTC, NIB, FABL, and PSO.

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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