Karachi Stock Exchange Weekly Analysis 16 November, 2014

The Karachi Stock Exchange (KSE) market momentum was bullish and the index eclipsed the 31K psychological barrier for the first time in history. KSE-100 index rose 414 points (1.34%) to close at 31,344 points. KSE – 30 index reached on 20,529 by gaining 201 points or 0.99 percent.

Average daily turnover for the week surged by 29.5%WoW to 283.3mn shares, with volume leaders being JSCL (110.7mn shares), MLCF (47.5mn shares), EFERT (46.3mn shares) and ENGRO (32.6mn shares). According to analysts, monetary policy announcement on Saturday, positive news flow from PM’s visit to EU will be key factors dictating market movement in the upcoming week.

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

  • State Bank of Pakistan (SBP) has reduced the policy rate by 50 basis points (bps) to 9.5 percent on Saturday, thus it is expected Karachi equity market would remain bullish in upcoming week
  • Easing in the political exasperation also played its role in propelling the benchmark   
  • Release of auto numbers by PAMA depicting a 27%YoY increase in auto sales to 12,651 units in Oct’14
  • Cement dispatches clocking in at 2.1mn tons in Oct’14; up 6% YoY
  • Pakistan plans to issue a US dollar‐denominated Islamic bond worth at least USD500mn this month and also hopes to obtain USD1.1bn from the IMF soon, FM
  • Allowance of sugar exports and imposition of 20% import regulatory duty on the same
  • Trade deficit swelling to USD8.8bn in 4MFY15
  • Scrips weighing down on the Index included POL (-4.1%WoW, due to continued decline in oil prices), UBL (-3.4%WoW) and ICI (-2.6%WoW)
  • The Prime Minister of Pakistan visited China, Germany and Britain where he inked many contracts mainly building power plants to beat energy crisis. The foreign tours were rays of light for a country with ravenous appetite for FDI and energy
  • The decline in oil prices in international market was also rendered oil stocks at declining trajectory
  • Auto sales going up the hill
  • Germany desires to invest energy sector in Pakistan
  • LNG import to start from March 2015
  • OGDCL stake sale postponed after IMF nod
  • FDI 26.5% less then previous 1QFY15 year
  • Power receivables soar to Rs 577.33 billion
  • Mari Petroleum was infused with fresh rigor as approval of its new pricing formula pushed the scrip deep into green
  • Foreign participation remained stout with an inflow of USD 9.46 million which takes the MTD tally at USD 34.8 million
  • China promised Pakistan investment worth USD42bn, an, as Islamabad promised to help Beijing fight what it calls a terrorist threat in its far‐west. PM oversaw the signing of 19‐agreements and memorandums mostly centred on the energy sector as he met Chinese President Xi Jinping in Beijing 
  • Australia will significantly slash tariff on the import of Pakistan’s textile products from next year
  • GoP restored gas supply to the textile units in Punjab by suspending the gas‐load management, while connections already closed are also being restored

Top ten gainers of last week were: Mari Petroleum, Archroma Pakistan, EFU General Ins, Pakgen Power Ltd., Jah.Sidd. Co., Engro Corp, Pak Reinsurance, Gul Ahmed, EFU Life Assur Ltd. and Abbott Lab.

Top ten losers of last week were: Soneri Bank, Pak Suzuki Motor, Feroz 1888 Mills Ltd, Grays Of Combridge, Nishat Chunian Power, Indus Motor, Century Paper, Allied Rental Mod, Pak Oilfields and International Steels Ltd.

Top ten volume leaders: JSCL, MLCF, EFERT, ENGRO, AICL, DGKC, BAFL, TRG, PTC, KEL, and SHFA.

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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