Karachi Stock Exchange Weekly Analysis 31 Aug, 2014

The Karachi Stock Exchange (KSE) market suffered another torrid week as the ongoing political deadlock entered its third week resulting in the benchmark KSE-100 index falling 304 points (1.1%) during the week ended August 29. Amid political instability and political situation is likely to set the direction of the market next week too. The KSE-100 index slid 304 points, or 1.1 percent, week on week to 28,568 points as against 28,872 points.

Average traded volume dropped 4.4% WoW to 119mn/day. Foreigners maintained a cautious approach until news flow of Army mediation which triggered heavy inflows, dictating growth of 45% WoW in FIPI to clock in at US$8.5mn.

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

  • With the intervention of Army Chief on behalf of the government may have provided some ray of hope to the masses. Consequently benchmark returned aggressively on Friday and added nearly 1,000 points at one point in time
  • The foreign investors seems confident as buying of USD8.3mn in the week while power boost of USD10mn was received on Friday alone
  • The political saga has overshadowed the fiscal year financial results where number of corporate announced better earnings and payouts
  • KEL announced its financial result with an earnings of PKR0.47/share along with PKR0.525/share dividend for minority shareholders, which surprised the investor community
  • It is worth mentioning results of INDU, PAEL, KAPCO, PPL and GTYR were fairly impressive
  • The news related to antidumping investigation by South Africa over import of cement has dented the performance of LUCK
  • AICL result was fairly unimpressive as selling pressure was witness in the stock
  • ECC of the Cabinet, which is scheduled to meet on will approve GoP guarantee for PIA to raise PKR1bn from Faisal Bank under the Islamic mode
  • Halal meat export has fetched foreign exchange of US USD230.2mn during FY14, showing almost 9% increase as compared to FY13
  • PM witnessed the signing ceremony of financing agreements of USD588.4mn and USD76.4mn with the WB for construction of Dasu Hydropower Project and SAGP
  • FM has released PKR2.13bn of Financial Restructuring Package to PSM for the salaries and procurement of raw material
  • PPIB has extended the date for submission of EoIs till September 29, 2014 for 6,600MW coal power projects planned to be installed in Gaddani (Balochistan) on the request of some prominent investors
  • Pakistan receives USD371.4mn under CSF
  • Foreign reserves down 3.9% during the week
  • Banking spreads fall 40bp MoM to 5.95% in Jul‐14
  • ECC may approve LNG allocation for CNG industry
  • FBR’s collection of taxes on track; no negative effect of sit‐ins
  • Hubco plans to install two 660MW coal‐fired power plants with the investment of US$1bn each at its Hub site

Top ten gainers of last week were: K‐Electric, Pak Tobacco Co, Grays Of Combridge, Muree Brewery Co Ltd, Attock Cement Ltd, Allied Rental Mod, Soneri Bank, International Steels Ltd, PICIC Growth and Atlas Honda Limited.

Top ten losers of last week were: Lucky Cement, Hum Network Ltd, Sui South Gas, Pak Suzuki Motor, Thal Limited, Century Paper, IGI Insurance, Kohat Cement, Stand.Chart.Bank and Attock Refinery Ltd.

Top ten volume leaders were: BOP, KEL, MLCF, LPCL, TRG, FCCL, AICL, PPL, FABL, JSCL, 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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