Karachi Stock Exchange Weekly Analysis 19 October, 2014

The Karachi Stock Exchange (KSE) market was dancing to the tunes of declining oil prices in the international markets. KSE – 100 index closed on 29,883 by losing -276 points or -0.91%.

The index shed 275 points during the week with an Average Daily Turnover (ADT) of 216 mn shares. With lack of interest in blue chips volumes were concentrated in small‐cap and third tier stocks. Earnings excitement in the banking stocks kept the sector hot on investor’s radar, however gains were pared as profit taking settled in towards the last leg of the week. Selected names in the cement universe such as FCCL and KOHC marked healthy advances as well.

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

  • KSE-100 index followed negative trend and dropped by 275 points (-1%) during the week. International oil prices dropped by 3% during the week and thus dragged oil stocks
  • Throughout the week major E&P scrips were seen under selling pressure
  • Index heavyweight stock, OGDC had the highest impact as it dragged index by 136 points followed by other three oil names PPL, PSO and POL which cumulatively contributed 184 points to the index decrease
  • PSO posted highest loss of 7% during the week among KSE-100 stocks, followed by PTC which dropped by 7% due to weak 9MCY14 results
  • Average daily trading volumes picked up post long holidays, and increased by 48% WoW to 102mn shares
  • Foreigners turned sellers during the week, after a long gap of nine weeks, with net foreign selling clocking in at USD8.99mn during the week relative to buying of USD9.4mn in the preceding week
  • Foreign reserves improve, reach $13.4bn by Oct 3
  • Government's total debt surges by 1.6 percent to Rs16.05trn
  • Car sales in first quarter remain flat
  • Automobile stocks were in for an unabated bull‐run on account of expected approval of the new auto policy that recommends a reduction in duties on CKD kits. Anticipation of stellar earnings in the wake of a declining Yen gave further thrust to the sector
  • ENGRO (↓5.58%) was dragged downwards as the company’s food subsidiary continues to bleed resources; the stock witnessed selling by foreigners and local institutions during the week
  • The result season will be in full swing as earnings announcement of major stocks across banking; E&P’s, autos and pharmaceutical sectors are lined‐up for next week
  • The Sindh government is starting a project to produce 672MW electricity daily from 2000 tons garbage of Karachi city
  • Around 2.5 million subscribers have opted for 3G services being provided by mobile phone operators since its launch in April this year
  • Karachi‐based Jubilee General Insurance Company will seek shareholder approval to offer Islamic insurance (takaful), becoming the latest firm to enter the sector after conventional firms were allowed to offer shariah‐compliant products earlier this year 
  • FM sounded confident on simultaneous release of two IMF tranches, totaling USD1.1bn in December, after an agreement was reached with the Fund on combining the fourth and fifth reviews of the country's economic performance 
  • PPL has discovered hydrocarbon from its exploratory well in district Sanghar of Sindh, a company announcement said on Tuesday

Top ten gainers of last week were: Bata (Pak) Ltd., J.D.W.Sugar, Netsol Technologies, Grays Of Combridge, Millat Tractors, Indus Motor, Thal Limited, Service Indus, Kohat Cement and GlaxoSmithKline Pak.

Top ten losers of last week were: P.S.O., P.T.C.L.A, Hum Network Ltd, Shell Pakistan, Pak Oilfields, Engro Corp, Atlas Honda Limited, Rafhan Maize Prod., Oil and Gas Deve and Lotte Chemical Pakistan Ltd.

Top ten volume leaders: LPCL, PTC, BOP, JSCL, TRG, FCCL, EFERT, AKBL, BAFL, DGKC and KEL.

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:

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