Karachi Stock Exchange Weekly Analysis 20 July, 2014

The Karachi Stock Exchange (KSE) market index was bullish and KSE‐100 index breached the psychological level of 30,000. The KSE-100 index rose by 907 points, or 3.1 percent, on week-on-week basis to close at 30,225 points against 29,318 points last week.

Volumes surged by 120%WoW led by Moody’s upgrade and start of result season, with ADTO clocking in at 131mn shares. Average daily value traded rose by a staggering 175.4%WoW to US$75.4mn. FIPI rose by a massive 192%WoW to US$24.2mn.

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

  • State Bank of Pakistan has announced monetary policy and keep the keep the policy  rate unchanged at 10.0 percent
  • The week started off on a great note after news that Moody’s had upgraded the country’s economic outlook from Negative to Stable
  • Activity was witnessed in the Banking and Oil and Gas sectors throughout the week, with both sectors providing the bulk of the KSE-100’s gains
  • The week saw foreign portfolio investment net inflows up by 192 percent to $24.2 million against $8.2 million last week
  • Index heavy OGDC contributed +125 points to the index as government finalized its shares off-load transaction timeline (Oct-14) while financials also gained +3.6% over Moody’s rating upgrade of five banks
  • DAP have plunged 52,000tons in Jun‐14, due to lack of clarity from the government regarding the price mechanism for providing the PRs14bn subsidy to farmers announced by Finance Minister Ishaq Dar in the budget 2014‐2015 
  • The Ministry of Finance has asked the central bank to waive its ‘per party limit’ on Pakistan State Oil (PSO) in an interim arrangement, which will enable the company to borrow more from banks and keep supplying fuel to power plants in required quantity, sources say 
  • Lucky Cement setting up a 660MW coal‐based power plant
  • Investors have had an eventful week triggered by Moody’s foreign exchange reserves rating for Pakistan revised up to stable
  • The ongoing corporate result season kicked‐off with a surprise dividend announced by PTC, however it failed to excite investors due to ongoing ICH issues
  • Investors may not want to ignore the political muddle in the country where 14th Aug event by the PTI may possibly keep investors watchful
  • INDU has invested about USD100mn in Pakistan to introduce a new model Corolla Altis Grande
  • Leaders of the BRICS group of emerging powers created a Shanghai‐based development bank and a reserve fund seen as counterweights to Western‐led financial institutions. The development bank will have initial capital of USD50bn that could rise to USD100bn, funded equally by each nation 
  • Exim Bank of China has agreed to offer a loan of USD300mn for completing the most critical Neelum Jhelum hydropower project, having a capacity of 969MW, by 2016. Wapda Chairman Wapda still required USD475mn to complete the project by 2016 
  • HASCOL has acquired 11.4% shareholding in PRL
  • MoSP the process for privatization of the PIA will be formally initiated after the appointment of a financial adviser on July 22

Top ten gainers of last week were: Cherat Cement, Thal Limited, ICI Pakistan, Kohat Cement, Bank AL‐Habib, Attock Cement Ltd, Fauji Cement Company, United Bank, Muree Brewery Co Ltd and Askari Bank Ltd.

Top ten losers of last week were: EFU General Ins, Shezan International Ltd., Pak Services, Allied Rental Mod, Grays Of Combridge, Pak Tobacco Co, NIB Bank, K‐Electric, TPL Trakker Ltd and Agritech

Top ten volume leaders were: LPCL, FCCL, KEL, MLCF, DGKC, JSCL, NBP, UBL, BOP, AICL and SSGC.

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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