Karachi Stock Exchange Weekly Analysis 10 Aug, 2014

The Karachi Stock Exchange (KSE) market witnessed a downward trend during the past week on political instability. Karachi Stock Exchange (KSE)-100 index lost 931 points or 3.1 percent Week on Week (WoW) to close at 29,382.97 points as compared to 30,314.07 points of the previous week.

Meanwhile, average daily trading volumes dropped to 129 million shares (-25 percent WoW) as the local investors’ opted for a ‘wait and see’ approach. Post August 14, 2014 greater clearing may push investors to reacquire their investment or political storm may provide investors with a valuable opportunity to acquire stocks at a cheaper rate. According to analysts, the market might also remain vulnerable next week, as political uncertainty continues and protest demonstration in Islamabad is scheduled on Thursday, August 14. The market will keenly follow the show of power expected to be put up by Pakistan Tehrik-e-Insaf and Pakistan Awami Tehrik on August 14.

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

  • Foreign investors continued to accumulate valuable stocks at a bargain while investing nearly $16.1million
  • Foreign investor weighted heavily over the improvement pertaining to the Army operation and chances of economic recovery seem strong
  • In the outgoing week, the benchmark lost nearly 1,094 points backed by chances of political noise
  • Allied Bank Limited and United Bank Limited (UBL) posted an impressive return; nevertheless market was anticipating better return from UBL
  • Yet again Engro Foods disappointed the investors with its financial results
  • Heavy weight sectors’ like oil and gas and banks plunged by 3.4 percent and 2.8 percent WoW respectively
  • Oil and Gas Development Company (OGDC) lost 3.8 percent WoW, despite announcing a cash dividend of Rs 3 per share
  • July 2014 Consumer Price Index clocking in at 7.88 percent
  • Commencement of talks between Pakistan and International Monetary Fund in Dubai and government fetching Rs 87 billion in the T-bills auction
  • The market will be eyeing key results coming up for the oil and gas sector including Attock Group, Pakistan Petroleum Limited and cement sector. Banking results (especially mid-tier) will also keep the interest alive
  • The discovery of a gas field by Pakistan Petroleum Limited (PPL) in the Gambat block
  • Power receivables soar to PKR512.9bn in fiscal year 2014
  • Disastrous situation in power sector: Discos suffer PKR211bn loss
  • Cotton price declines to two year low
  • Nestle increased price of Milkpak by PRs10/liter
  • PSMC notified entering into an agreement with the Bank of Punjab for the sale of 50,000 units of Suzuki Ravi and Suzuki Bolan. The agreement has been signed under “Apna Rozgar Scheme” of the GoP, which was announced in the provincial budget this year 
  • CHCC is investing around PKR12bn to install a new production plant at its factory’s site in Nowshera, KPK
  • ICI has planned to spend around PKR2.85bn to improve its energy mix and expand dense soda ash production capacity earlier this week
  • Pakistan and China have signed an agreement according to which Beijing will fund 14 hydel and thermal power projects of 10,400MW in Pakistan on first priority list

Top ten gainers of last week were: Hum Network Ltd, EFU Life Assur Ltd., Askari Bank Ltd., Siemens Pak Engg., Meezan Bank, Faysal Bank, Fauji Fertilizer Co., Habib Bank Ltd, Shezan International Ltd. and Mari Petroleum

Top ten losers of last week were: TRG Pakistan Ltd, Cherat Cement, IGI Insurance, Netsol Technologies, Attock Cement Ltd, Grays Of Combridge, Century Paper, Jah.Sidd. Co., Packages Limited and P.T.C.L.A.

Top ten volume leaders were: LPCL, AKBL, FCCL, TRG, MLCF, BAFL, BOP, LOTCHEM, NBP, KEL, and PPL.

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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