Karachi Stock Exchange Weekly Analysis 14 September, 2014

The Karachi Stock Exchange (KSE) market resumed its upward drive and continued to make up for lost ground as the benchmark KSE-100 index soared 531 points (1.8 percent) to close above the 30,000-point barrier during the week ended September 12. KSE-100 index rose by 1.8 percent or 531.11 points to close at 30,044.89 points as compared to 29,513.78 of previous week’s closing.

Volumes dried up during the week, averaging at 74 million shares, down 41 percent Week on Week (WoW) due to continuing deadlock in Islamabad between government and protestors.

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

  • Heavy buying in the oil and gas, banking and cement sectors was the highlight of the week as investors shrugged off the ongoing political tension and returned to purchasing stocks
  • Floods in Punjab proved to have a dampening effect and kept trading volumes on a leash
  • The oil and gas sector was the star performer, with both the Oil and Gas Development Company and Pakistan Petroleum Limited outperforming the market
  • The banking sector also claimed its stake as the majority of banks’ share prices climbed following the PIB auction in which yields were on the higher side
  • The cement sector also posted strong gains, climbing 1.7% as cement offtake remains strong after the slowdown during Ramazan
  • With the ongoing political crisis, the government has decided against implementing unpopular policies such as increasing the power tariff by 7% as demanded by the International Monetary Fund (IMF)
  • Foreigners continued to remain buyers with net buying of $18.7 million during the week, relatively similar to amount of shares bought during the preceding week
  • The Chinese GoP has set out plans to invest USD50bn by 2017 in new coal‐fired power plant and solar and wind energy units in Gwadar to help stabilize supply in the energy‐deficient country 
  • The launch of Punjab government’s taxi scheme, for which the has already entered into an agreement with the BoP, is reported to have been delayed
  • Gains were primarily led by UBL (+6%), PPL (+3%), OGDC (+1%) and HUBC (+4%) with the said scripts cumulatively contributing +252 points. Banking sector (+2%) remained in limelight during the week due to expectations of increased yield on investments for the sector post PIB auction. Interest was also evident in the oil sector (+2%) with OGDC announcing a sizeable discovery in Saghri concession
  • Volumes dried up during the week, averaging at 74mn shares, down 41% WoW due to continuing deadlock in Islamabad between government and protestors
  • Foreigners continued to remain buyers with net buying of USD18.7mn during the week, relatively similar to amount of shares bought during the preceding week
  • Power tariff: Govt misses IMF deadline, loan tranche in jeopardy
  • Circular debt brought down to PKR238bn, Dar informed
  • According to Moody's, Political strife is credit negative
  • Overseas Pakistanis remit USD2.98bn in July, Aug 2014
  • PKGP announced its 2QCY14 results recently posting EPS of PKR0.73. The decline in earnings emanated from an 89% decline in tariff, coming into effect since Jun-14, and heightened fuel losses
  • BAFL posted strong 1HCY14 earnings primarily due to higher net interest income, backed by increased proportion in PIBs, and impact of DR hike fully reflected on the bank’s asset side
  • PSO announced its result for FY14 posting EPS of PKR80.3, up 74% YoY on the back of higher penal income and inventory gains
  • Market participants would likely track monetary policy scheduled to be announced over the weekend while foreign flows would also guide direction next week

Top ten gainers of last week were: Hum Network Ltd, Shifa International Hospitals, Atlas Honda Limited, GlaxoSmithKline Pak., International Steels Ltd, Int. Ind.Ltd, Javedan Corporation, Abbott Lab, TPL Trakker Ltd and EFU General Ins.

Top ten losers of last week were: Pak Tobacco Co, Bata (Pak) Ltd., Netsol Technologies, Pak Oilfields, Pak Services, Muree Brewery Co Ltd, Kohinoor Textile, Jah.Sidd. Co., Colgate Palmolive and Azgard Nine.

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

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

1 comment:

  1. Thanks!you have captured good info & shared with us.i have taken lots of points & keep it in my mind for future use.

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