Karachi Stock Exchange Weekly Analysis 24 Aug, 2014

The Karachi Stock Exchange (KSE) market volatile amid political unrest. Karachi Stock Exchange (KSE)-100 index lost 46 points or 0.2 percent Week on Week (WoW) to close at 28,871.75 points as compared to 28,917.75 points of the previous week. Average trading volumes plunged by 26% WoW to 124mn shares as compared to 169mn shares traded previously.

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

  • The weak sentiment was mainly attributed to the ongoing political uncertainty in the country where a leading opposition party is protesting against the government and demanding the resignation of the prime minister and holding of mid term elections with electoral reforms
  • PTI decides to quit assemblies sans KP
  • The cancellation of IMF visit to Pakistan on account of political unrest further dented the market sentiment
  • Foreigners continued with their momentum and bought shares worth USD5.9mn during the week
  • Even corporate results failed to boost market sentiment as NBP and FCCL declined by 1.7% and 5.1%, respectively this week, despite reporting respective 42% and 27% EPS growth
  • HUBC gained 4.4% WoW as it announced a higher than expected cash dividend of Rs4/share
  • The Auto sector (+3.5% WoW) was the star performer of the week as the Minister of Water and Power announced the submission of auto industry policy for approval
  • Pak rupee depreciated by 1.7% WoW against the US$ hitting 6-month low at Rs 101.73
  • Trade deficit at US$1.4bn, down 16.58%YoY
  • FDI in July 2014 amounted to US$24mn, down 80%YoY
  • July 2014 textile exports amounted to US$1.17bn, up 5% MoM
  • Reserves of SBP fall below USD9bn
  • Sit-ins will stall OGDCL privatisation
  • Exports down by 7.9% YoY in Jul‐14
  • The government raised PRs71.7bn through the sale of market treasury bills on Wednesday, which is PRs53.3bn less than the target amount of PRs125bn. A total of PRs69.6bn was invested in the 3M tenor, while the 6M and 12M tenors received PRs333.4mn and PRs1.7bn respectively 
  • After an encouraging Efert (down 0.6% WoW) result last week, its parent company Engro Corp (‐1.9% WoW) posted a significantly below expectation result, attributable to consistent problems in its Eximp business which has reported a hefty loss in 1H14
  • Lucky Cement (+2.5% WoW) received significant attention throughout the week, but failed to drive the cement sector which closed 0.59% down WoW
  • The Sind High Court passed an interim order, restraining SSGC to collect GIDC above PRs13/mmbtu for industrial consumers as well as IPPs, against the proposed PRs150/mmbtu and PRs200/mmbtu for the respective categories
  • NRL has awarded around USD242.14mn of contract of installing its different plants to a Chinese company, revealed a filing at the stock exchange
  • ECC approves sovereign guarantee for 500KV transmission line
  • Punjab government on Tuesday approved 11 development schemes of different sectors at an estimated cost of PKR6,695.57mn.The schemes were approved in the 6th meeting of Provincial Development Working Party of FY15 presided over by the PP&D Chairman,. Provincial Secretary P&D members of the Planning & Development Board, Provincial Secretaries concerned and other senior representatives 
  • JSCL plans PKR1.15bn rights issue to fund investments
  • SBP has brought reforms in its function on the demand of IMF that would be reviewed next month for the release of tranche of USD550mn

Top ten gainers of last week were: TPL Trakker Ltd, Atlas Honda Limited, IGI Insurance, Rafhan Maize Prod., Pak Services, Hub Power, Bank Al‐Falah, Cherat Cement, Kohat Cement and Nishat Power Ltd.

Top ten losers of last week were: Jubilee Gen Ins, EFU General Ins, Siemens Pak Engg., National Refinery, Jah.Sidd. Co., Sui South Gas, Grays Of Combridge, Century Paper, Kohinoor Textile and Shell Pakistan.

Top ten volume leaders were: BOP, FCCL, MLCF, LPCL, DGKC, JSCL, BAFL, AICL, PPL, PTC and TRG.

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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