Karachi Stock Exchange Weekly Analysis 9 November, 2014

The Karachi Stock Exchange (KSE) market, Positive news flow takes bourse to new highs. KSE-100 index rose 553 points (1.82%) to close at 3 0,930 points. KSE – 30 index reached on 20,328 by gaining 223 points or 1.11 percent. According to experts, expectations regarding DR cut in monetary policy announcement, which is due in upcoming weeks, shall drive overall market direction while results of OGDC book building will remain a key trigger for the E&P sector.

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

  • Decline in CPI is expected backed by local POL product prices slashed by 7‐9% at this month’s start has led to investors building a DR cut scenario in the coming MPS announcement
  • KSE-100 index gained 554 points (+1.8% WoW) post long weekend with lower than consensus inflation figures in Oct-14 and weakening international oil prices remaining key triggers for the bull run
  • LUCK (+8.2% WoW) remained the key contributor to index gains and contributed 83 points during the week. However, bearish sentiment in OGDC (-1.3% WoW) on account of falling oil prices dragged the benchmark index by 37 points
  • Trading volumes continued their upward trend with average daily volumes clocking in at 168mn shares, up 63% WoW
  • Foreigners turned net buyers during the week and mopped up shares worth USD25.6mn which was primarily due to sizeable sale in HUMNL shares by sponsors (~USD22mn)
  • Wheat support price fixed at PKR 1300 (increased by 8.4%)
  • Import of used cars jumps 63% over 3-month period
  • Consumer Price Index inflation eases in October to 5.8%
  • Inflation for the month of October clocking in at an 18 month low of 5.8% YoY fuelling expectations of a rate cut by the SBP in its November 2014
  • Book building for offloading of 322 million shares in OGDC by the Government of Pakistan taking place over the week with a floor price set at PkR216 / share. But later on it's selling is cancelled by government because offers are not according to their expectations
  • The Yen falling sharply in international currency markets on the back of the BoJ’s surprise monetary policy easing
  • Oil & Gas Development Company (OGDCL) has made a discovery in Nim block at Jarwar 01
  • Forex reserves surges by 1.8 pc
  • Massive increase in gas tariff likely
  • Beneficiaries of fall in interest rates would be banks that have stacked PIBs in their investment portfolios due to which BAFL and HMB gained highest in the sector this week
  • Drop in global coal prices and Yen depreciation of 8% FYTD continued the rally in the Cement and Auto sector, respectively
  • Finance Minister urged to allow sugar export, impose duty on import
  • Around 6 companies have submitted their EOIs against imported coal based IPPs of cumulative capacity of 6600MW to be set up at Gadani Power Park Balochistan
  • SSGC regretted that it has been unable to finalize annual accounts for the second year in a row due to a delay on part of the OGRA
  • PTCL has introduced the VPS for its employees which will be available for one month, effective from November 5, 2014. Besides reducing retirement age from 20 to 18 years, the additional two years’ benefit has also been added to eligible pensioners. In addition to these benefits, employees are topped up with Early Bird Bonus (PKR200,000) and Group Bonus (PKR150,000), fulfilling the requisite conditions

Top ten gainers of last week were: Jah.Sidd. Co., Hum Network Ltd, Mari Petroleum, Pak Suzuki Motor, Grays Of Combridge, Gul Ahmed, Indus Motor, Sui South Gas, Pioneer Cement and Searle Pak.

Top ten losers of last week were: J.D.W.Sugar, GlaxoSmithKline Pak., Colgate Palmolive, Allied Rental Mod, Bata (Pak) Ltd., National Foods, Pak Oilfields, NIB Bank, P.S.O. and United Bank.

Top ten volume leaders: JSCL, MLCF, EFERT, FCCL, BAFL, DGKC, SHFA, BOP, SNGP, KEL, 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:

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