Karachi Stock Exchange Weekly Analysis 7 September, 2014

The Karachi Stock Exchange (KSE) market entered recovery mode after five straight weeks of decline as the improving political situation resulted in the KSE-100 index climbing 946 points (3.3%) to close at 29,513 during the week ended September 5. The 100-Index surged by a total of 946 points, or 3.3 percent, week on week to 29,514 points as against 28,568 points recorded as gross score in the last week.

Average trading volumes shot up 48% and stood at 176 million shares traded per day, while average daily value was recorded at Rs9.38 billion, up 48% over the previous week. The KSE’s market capitalisation stood at Rs6.94 trillion at the end of the week.

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


  • With the political situation improving, foreigners also actively participated in the market and bought a net of $18.65 million worth of equity during the week, more than double the $8.5 million net buying in the previous week
  • Strong corporate earnings also aided the index with the cement sector taking the limelight after Lucky Cement, the country’s largest cement manufacturer, announced better-than-expected earnings resulting in a 11% gain in its share price during the week
  • The heavyweight Oil and Gas sector also contributed to the rally as shares like OGDC and POL recovered losses witnessed in the previous month
  • Macroeconomic indicators also played a role in the market’s performance as inflation numbers for the month of August clocked in at 6.99% as compared to 7.88% in July
  • The country’s declining foreign exchange reserves and the falling value of the Pakistani rupee against the US dollar were a cause of concern for investors and will be monitored closely moving forwards
  • Lower-than-expected consumer price index inflation of 6.99 percent year on year for August 2014 stirred the expectation of a potential cut in the discount rate in the monetary policy statement due in mid-September
  • Strong corporate announcements kept investor interest intact. Cement, textile and telecom sectors were the major attraction
  • A slight cut in petroleum prices, budget deficit of 5.5 percent for the last fiscal year, 34 percent drop in national savings in FY14 and rise in cotton outputs were the key highlights
  • Engro Powergen Qadirpur Ltd, Pakistan’s only power plant that uses permeate gas as fuel, is carrying out an exercise in collaboration with General Electric to determine the compatibility of low BTU gas from other petroleum fields with its equipment 
  • Lucky Cement has started negotiating financing documents with international financial institutions and companies for its Congo plant, targeting its financial close by the end of this month 
  • Lucky Cement has planned to install two vertical grinding mills at its Karachi plant to enhance productivity and reduce the rising energy costs, it said on Tuesday
  • The government has raised PRs190.27bn through treasury bills auction on Wednesday, beating the top end of its target range, amid strong demand from investors 
  • Pakistan will make a case for stepping up financial resources from the Asian Development Bank (ADB), one of the donors for the muchdelayed Diamer Basha dam project. The president of the manila‐based bank is scheduled to visit Pakistan this month 
  • Government of Pakistan collects PKR600bn from oil, gas sector
  • The Islamic Republic of Pakistan's MoF has selected Citigroup, Deutsche Bank, Dubai Islamic Bank and Standard Chartered as bookrunners for a US dollar sukuk offering, MoF who asked not to be identified
  • Pakistan to import 600,000 tons of urea for Rabi season
  • NEPRA has notified increase in power tariff by 43 paisas per unit
  • Pakistan and IMF talks to conclude the 4th review on USD 6.67 billion EFF have been stalled, as the ongoing political standoff has put the country into a state of deep freeze, government
  • Pakistan insurance market set for takaful boost
  • Pakistan has sought a non‐commercial funding of USD300 mn from China Exim Bank for 969MW NJHEP as funding gaps are delaying the project which is scheduled to be completed by 2016, well informed sources told Business Recorder


Top ten gainers of last week were: Jah.Sidd. Co., Netsol Technologies, Dawood Hercules Chem, Century Paper, Azgard Nine, Pak Suzuki Motor, ICI Pakistan, Shifa International Hospitals, Lucky Cement and Faysal Bank.

Top ten losers of last week were: National Foods, Pakistan Cables, International Steels Ltd, Shezan International Ltd, Agritech, Meezan Bank, Soneri Bank, Rafhan Maize Prod., Pak.Int.Con. and Habib Bank Ltd.

Top ten volume leaders were: KEL, MLCF, JSCL, BOP, AICL, FABL, DGKC, TRG, FCCL, LPCL, and ABOT.

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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