Karachi Stock Exchange Weekly Analysis 21 September, 2014

The Karachi Stock Exchange (KSE) market remained lackluster during the week and Bullish momentum looses steam as KSE stays flat this week. KSE-100 index dipped by 0.09 percent or 29.09 points to close at 30,015.80 points as compared to 30,044.89 of previous week’s closing.

Lack of positive news flow amid floods and political impasse kept buyers and sellers on equal footing with average traded volumes rising 25.3%WoW to 163.7mn/day. Foreigners provided major support to the market this week, as FIPI clocked in at US$13.2mn (down 29% WoW).

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

  • State Bank of Pakistan has announced the Monetary Policy for next two months and keep the discount rate unchanged
  • Prevailing political impasse, mixed corporate results and wait and see approach of the investor community ahead of State Bank of Pakistan’s (SBP) Monetary Policy Statement (MPS) resulted in the benchmark Index staying in a tight range
  • Gains from financials, including UBL (+3.0%) and HBL (+7.1%), contributed a total of 102 points to the index. However, negativity in oil stocks dragged the index by 218 points (OGDC -4.1%, PPL -1.4%, POL -3.0%). Weak international oil prices coupled with expectations of higher discount on OGDC’s SPO primarily dented investor sentiment
  • The investors were anxiously waiting for the result of major cement players including DGKC and MLCF. After the acquisition of LPCL by Bestway group, investors were expecting DGKC to announce its long term expansion plans along with the annual result announcement
  • With result season nearly over, lack of news flow towards the market before the Eid is likely to keep the market dull and dry
  • IPPs are in a state of frustration to continue producing power as their outstanding amount has reached PKR 230.6 billion
  • ECC of the Cabinet has decided, in principle, to approve a MoP proposal to import LNG for the CNG sector
  • Pakistan’s first BOT based 660MW Green Field Coal‐Fired Power Plant initiated by KEL is unlikely to be realized as federal government was reluctant to endorse it by giving sovereign guarantee to its sponsors
  • PPL announces second discovery in Sindh. In less than 6weeks after its last discovery in exploratory well Sharf X‐1 in companyoperated Gambat South Block on August 5, PPL has announced another gas‐condensate discovery from exploratory well Adam West X‐1 in Hala Block, District Matiari, Sindh 
  • Lucky Cement to setup 660MW coal‐fired plant
  • PSO does not expect the government to kick off its privatization process anytime soon as the company has not got any clue so far despite the fact that it is on the current privatization list, the company’s MD
  • After a dismal performance in the last 18 months, EFOODS to be heading towards recovery and may even be back in business by the end of 2014 —at least according to its CEO
  • IFC a member of the World Bank Group has agreed to subscribe 15% equity by investing USD 67 million in BAFL
  • Foreign investment declined by 20%
  • Finance Minster hinted at delay in fourth IMF installment
  • Cotton arrivals reached 2.75mn bales till Sep 15, 2014, up 4.73%YoY
  • Foreign exchange reserves rising by US$110mn from last week to US$13.525bn
  • Gains from financials, including United Bank Limited (UBL) (plus 3.0%) and Habib Bank Limited (HBL) (plus 7.1%), contributed a total of 102 points to the index
  • However, negativity in oil stocks dragged the index by 218 points
  • Foreigners continued to remained net buyers mopping up $13.2 milion during the week, relatively lower (-29%) as compared to last week

Top ten gainers of last week were: Pakistan Cables, Allied Rental Mod, Lafarge Pakistan, Jubilee Gen Ins, NIB Bank, Thal Limited, Faysal Bank, Habib Bank Ltd, Pace (Pak) Ltd. and International Steels Ltd.

Top ten losers of last week were: ICI Pakistan, Hum Network Ltd, Oil and Gas Deve, Colgate Palmolive, National Foods, National Refinery, TRG Pakistan Ltd, K‐Electric, Maple Leaf Cem. and Lotte Chemical Pakistan Ltd.

Top ten volume leaders were: LPCL, MLCF, FABL, AKBL, DGKC, NBP, KEL, BAFL, BOP, FCCL 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

1 comment:

  1. Tata Motors was up 4 percent while ONGC and ITC gained over 3 percent each. Hero Moto and GAIL were other gainers in the Sensex.

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