Karachi Stock Exchange Weekly Analysis 2 November, 2014

The Karachi Stock Exchange (KSE) market maintained its upward momentum on the back of strong corporate earnings as the benchmark KSE-100 index rose 278 points (0.9%) to close at 30,376 points during the week ended October 31.

Average trading volumes remained steady at 172 million shares, up 4.4% over the previous week. However, average trading values shot up by 28.6% and stood at Rs10 billion per day. The KSE’s market capitalization stood at Rs7.03 trillion at the end of the week.

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

  • Investors overlooked declining oil prices and continued sell-off by foreign investors to aid the index in cementing its position above the 30,000-point barrier
  • While local investors largely remained sidelined ahead of the Ashura holidays, foreigners showed interest across the board, except in the power sector
  • The banking sector dominated trading activity for the majority of the week after United Bank Limited announced better-than-expected earnings for the nine-month period of 2014
  • The power sector was up next with the country’s two largest independent power producers (IPPs), Kapco and Hubco announcing their earnings. Kapco’s earnings were above market expectations while Hubco also matched market expectations, resulting in activity in the sector
  • The auto sector’s strong performance at the bourse continued with Pak Suzuki Motor Company (PSMC) announcing earnings above market expectations
  • Oil Marketing Companies (OMCs) came into the limelight after the Economic Coordination Committee approved the increase in OMC margins in a meeting on October 30
  • Foreigners also continue to be net sellers and sold $7.84 million worth of equity during the week
  • Results of textile companies, especially NML lost its velocity with a lost of nearly 8%W/W
  • Refineries posted worthless results hence all the major refineries posted negative returns
  • Cement stocks were unable to impress the market with their financial results but on a return basis LUCK, DGKC and MLCF posted better returns
  • Twenty‐one Asian nations have signed on to a China‐driven initiative to create a new development bank for Asia that’s aimed at boosting infrastructure investment of all kinds
  • Pakistan and the IMF will start discussions from in Dubai on Pakistan's economic performance under the cobbling together of 4th and 5th review under USD6.64bn EFF
  • ECC of the Cabinet is expected to approve FY14‐19 envisaging textile exports at USD26bn, besides creating three million jobs, revealed
  • GoP approved incentives for use of imported LNG and allowed 570,000 tonnes of urea import
  • NEPRA approved the increase in tariff for distribution companies in a public hearing on Monday by PRs0.52/KWh on account of fuel price adjustment for September 2014

Top ten gainers of last week were: Soneri Bank, Searle Pak, Pak Suzuki Motor, Colgate Palmolive, Service Indus, Pak Tobacco Co, Nishat Power Ltd, Archroma Pakistan, Kot Addu Power Co. and Packages Limited.

Top ten losers of last week were: Nishat Mills Limited, Attock Refinery Ltd., Pace (Pak) Ltd., Nestle Pakistan, Bata (Pak) Ltd., Pakistan Cables, Fauji Cement Company Ltd., Allied Rental Mod, Bata (Pak) Ltd. and Shifa International Hospitals.

Top ten volume leaders: EFERT, FABL, BOP, MLCF, KEL, LPCL, DGKC, FCCL, PSO, UBL, and AKBL.

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. The Nifty on Monday had closed at closing highs, rose 1.95 points to end at record closing high of 8324.15 while the Sensex fell 5.45 points to 27860.38 on profit booking.
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