Karachi Stock Exchange Weekly Analysis 8 June, 2014

The Karachi Stock Exchange (KSE) market was range bound during the week. Positive sentiment that could have emanated from the Budget announcement was dampened by deteriorating law & order situation in the city on news of arrest of MQM leader in UK KSE - 100 index closed at 29,509, by losing -228 points or -0.8 percent. The KSE All Share Index increased by 0.51 percent or 110.64 points to 21,825.14 points, the KSE 30-Index swelled by 0.31 percent or 62.23 points to 20,219.78 points, whereas the KMI 30- Index dipped by 0.02 percent or 7.55 points to 47,211.9 points.

On WoW basis, KSE-100 index went down 0.8%. Volumes rose 11% WoW with ADTO clocking in at 261mn shares. FIPI remained robust, rising 4% WoW to US$31mn. The volatility at the bourse attracted a lot of activity as average daily volumes increased 11% to 261 million shares traded per day. Similarly, average daily value also increased 18.7% to Rs13.24 billion traded per day. The market capitalisation of the Karachi Stock Exchange stood at Rs6.99 trillion at the end of the week.
 
Following news have played vital role in Karachi Stock Market index movement:


  • Political turmoil eclipsed budget FY15. Political turmoil eclipsed the significance of budget FY15 and resulted in KSE-100 index shedding 796pts on Tuesday. However the market managed to rebound and recovered by 501.4pts the same day 
  • The benchmark index remained volatile throughout the week losing 228.58 points (↓ 0.8% WoW) as a result of heightened uncertainty during the week
  • Index heavy weights primarily buoyed the index namely MCB, LUCK, FCCL and OGDC pushing the index by 37.8, 36.4, 31.1 and 26.6 pts respectively
  • Trading activity picked up slightly while average volumes clocked in at 181mn, up 10% WoW
  • Foreigners remained net buyers during the week mopping up USD9.02mn worth of shares against USD29.56mn in the previous week
  • Economic Survey 2013-14: targets missed
  • Prime Minister inaugurates first phase of PKR57.38bn Nandipur power project
  • Dar has presented PKR3.8tr budget
  • Japan inks accord to extend PKR5bn loan for energy sector
  • Govt all set to divest UBL shares
  • Pakistan-China corridor: Two strategically vital projects approved
  • Public debt reaches PKR15.534tr
  • Domestic sales of cement increased while exports decreased in May 2014 compared to the corresponding month last year Data released by APCMA, despatches to domestic markets increased by 9.86% to 2.309mn tonnes compared to 2.102m tonnes in May 2013 while exports decreased by 3.4% to 759,000 tonnes from 785,000 tonnes 
  • GoP has imposed CGT on debt instruments like PIB, Treasury Bills, Foreign Currency Bonds and Sukuk in the proposed FBFY15
  • A major oil reserve has been discovered near Jhelum in Punjab by MARI, opening up a new area for exploitation of hydrocarbon potential
  • Urea and DAP sales up 58% MoM and 188% MoM in May-14
  • Foreign participation remained strong as foreigners were net buyers of $31 million worth of equity
  • The capital market is concern the capital gain tax was increased from 10 percent to 12.5 percent for a period of less than one year while for the first time the government introduced a tax of 10 percent over one year period to two years
  • Finance minister announced the export refinance rate cut by 1.9 percent to 7.5 percent which was likely to benefit the textile companies
  • Weekend blues forced local investors to book profits at higher levels where United Bank Limited continued to remain under pressure ahead of government offering as concerns loomed over floor price
  • Renewed interest helped Engro Corporation to close 2 percent up after falling in last few trading sessions
  • Fauji Cement led the volume with 25 million shares gaining 5 percent in value
  • Fauji Cement, Pak Int Bulk(R) and Lafarge Pakistan were the top traded companies with turnovers of 25.067 million shares, 16.641 million shares and 15.584 million shares, respectively
  • Wyeth Pakistan Limited was the top price gainer with increment of 200.99 rupees (2.01 U.S. dollars) to 4,225.99 rupees (42.26 U.S. dollars) whereas Bata Pakistan was the major price shedder with decrement of 77.27 rupees (77.27 U.S. cents) to 3,457.19 rupees ( 34.57 U.S. dollars)

Top ten gainers of last week were: Shell Pakistan, Fauji Cement Company, Grays Of Combridge, Millat Tractors, P.T.C.L.A, Pakistan Cables, Pak Services, Nishat Chunian, Nishat Mills Limited and Lucky Cement.

Top ten losers of last week were: Engro Corp, Hum Network Ltd, Thal Limited, Century Paper, IGI Insurance, Faysal Bank, Bata (Pak) Ltd., Dawood Hercules Chem, Int. Ind.Ltd and United Bank.

Top ten volume leaders were: FCCL, LPCL, KEL, MLCF, BOP, PTC, ENGRO, JSCL, TRG, PSO and NML.

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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