Karachi Stock Exchange Weekly Analysis 18 May, 2014

The Karachi Stock Exchange (KSE) market Buoyed by Pak upgrade in MSCI review. KSE - 100 index closed at 28,883 by gaining 389 points or 1.4 percent.

The benchmark returned towards the glory adding nearly 389 points with nearly 132mn shares average daily volume. KSE-100 gained 1.4% WoW to close the week at 28,883 points. Volumes continued to remain sluggish, with ADTO clocking in at 133mn shares, down 5.5% WoW. Value traded also failed to impress with average of US$61mn traded per day, down 3.2% WoW.
  
Following news have played vital role in Karachi Stock Market index movement:


  • State Bank of Pakistan has announced Monetary policy maintaining status quo at 10%
  • News which greatly influenced the market was the enhanced weight of Pakistan in MSCI frontier market index. The recent changes in the MSCI index may have boosted the investor confidence
  • The stock included in the benchmark MSCI index was PSO, LUCK, PAKT and KEL whereas few other stocks were added in to the small cap index
  • KEL remained highly active during the week after inclusion in the MSCI FM index. Other stocks such as PSO, LUCK and PAKT were added, while Hubco was deleted from the MSCI FM index
  • Budget likely to be presented on June 3. Investors continue to believe on a possible boost in the market sentiment on the back of budget rally
  • Textile sector performing on Friday suggest some betterment is in the bag of the government or SBP which can possibly support them
  • Textile sector came in the limelight on the back of comprehensive proposals announced by the minister for the value‐added sector, which includes reducing borrowing costs, aiming to increase exports by US$3bn and offer 3%‐5% rebates
  • Government of Pakistan and IMF have successfully concluded negotiations for grant of USD550mn 4th tranche for EFF in Dubai and after the approval from IMF Board the country would get the amount by June 1, 2014 
  • PM performed the ground‐breaking of the country's first ever PKR15bn 100MW solar power park to provide cheap electricity and help the country meet its increasing energy needs. The Quaid‐e‐Azam Solar Park will be expanded to produce 300MW in the second phase by 2015
  • The overall fiscal surplus forwarded by the provinces to the tune of PKR216bn as well as surge in nontax revenue have helped the federal government to curtail its budget deficit at PKR811bn, or 3.1% of GDP, in 9MFY14
  • PM approved a PKR3.5bn interest‐free loan scheme, targeting 1mn people – 50% of them women. The disbursement of interest‐free loan would begin in June‐14
  • Nishat Chunian is in the phase to set up a 40MW coal based CPP to meet the internal electricity demands in a more efficient way that would help cutting the cost of energy significantly 
  • Remittances from overseas Pakistanis have shown a significant growth of 11.45% in 10MFY14
  • The government is reportedly planning a PRs31bn TFC to avoid PSO’s oil payment defaults
  • Thal Ltd has decided to invest PRs$3bn in Thar coal
  • PKGS, NATF, PAKT, BAHL and MCB were the primary index movers during the week gaining 23.8%, 14.4%, 12%, 5.1% and 1.0% WoW
  • Foreigners continued to remain net buyers during the week with an inflow of USD20.6mn as compared to USD5.0mn in the preceding week
  • Finance Minister Ishaq Dar expecting foreign exchange reserves to cross $15 billion by July this year
  • Government planning to introduce new textile policy and the Cabinet Committee on Privatisation (CCoP) giving a go ahead to the United bank Limited (UBL) privatisation deal
  • HASCOL shares commenced trading on the exchange this week with huge applause, as it was traded at a premium to the IPO price

Top ten gainers of last week were: Packages Limited, Hum Network Ltd, Muree Brewery Co Ltd, Pakistan Cables, National Foods, Siemens Pak Engg., Pak Tobacco Co, IGI Insurance, Abbott Lab and Thal Limited.

Top ten losers of last week were: NIB Bank, Jah.Sidd. Co., Javedan Corporation, TRG Pakistan Ltd, Netsol Technologies, Pace (Pak) Ltd., TPL Trakker Ltd, B.O.Punjab, International Steels Ltd and J.D.W.Sugar.

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