Karachi Stock Exchange Weekly Analysis 31 July, 2011

The Karachi Stock Exchange (KSE) market has witnessed a bearish trading week and closed on a negative note. The Karachi Stock Exchange (KSE) 100-share index has reached 12,190.37 points by the increment of 286 points or 2.3 percent.

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

  • SBP (State Bank of Pakistan) has cut interest rate (after 21 months) to 13.5 percent in monetary policy. According to analysts, it will boost trading trend in upcoming weeks
  • Political turmoil and disturbance between government and Supreme court (over restoration of establishment division secretary ) is increasing
  • Law and order situation throughout the country has made investors cautious and panic
  • Investors have serious concerns of US debt issue which might result in discontinuation of aid for Pakistan
  • Rising circular debt in energy sector, and uncertainty in global capital and commodity markets has also adversely affected the sentiments of investors
  • Forex reserves has reached up to $18.3 billion, which is the highest level in history
  • Pakistan government is planning to issue licenses for 3G(third Generation) mobile telecom in October 2011
  • Petroleum prices are likely to increase by Rs. 1.15 per litre in August, 2011
  • Value of Pakistani Rupee has reached another record low value
  • MCB, UBL, FFBL, FFC and few other companies has announced their results. While KAPCO, PSO, Lucky Cement, ABL, PPL, and EFL are likely to announce in upcoming week
  • Inflation is increasing continuously and consecutively (for last nine weeks)

Nestle Pak, Exide Pak, Nadeem Tex, Bhanaro Tex, Blessed Tex, Grays Of Cambridge, Agritech Limited, Atlas Honda, Security Paper Limited and Pak Cables were the major gainers while Unilever foods, Siemens Engg, Rafhan Maize, Pak Oilfield, Unilever Pak, Gharibwal Cement, Pakistan Tobacco Company, Lafarge Pakistan Cement Ltd, Jahangir Siddiqui & Co and Dawood Hercules were at KSE last week.

NOTE: The information posted in this blog (forum) is based on current afairs & invstors point of view. There may be discrepancy in the ground realities.

Written by: Rana Khurram

Karachi Stock Exchange Weekly Analysis 24 July, 2011

The Karachi Stock Exchange (KSE) market has witnessed a bullish trading week. The Karachi Stock Exchange (KSE) 100-share index has reached 12,346.52 points by the increment of 130 points or 1.12 percent.

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

  • Fine results are expected during upcoming week. Especially from energy, fertiliser, and banking sectors. Major highlight of next week will be the results FFC and FFBL
  • FBR (Federal Board of Revenue) has made a draft amendments to the way CGT (Capital Gain Tax) is calculated
  • SBP (State Bank of Pakistan) will announce next Monetary Policy in coming Saturday. And according to experts it will keep the discount rate unchanged
  • The resignation of SBP (State Bank of Pakistan) has been accepted
  • According to analysts, government of Pakistan is borrowing from the financial industry up to Rs. 2.9 trillions. This is up by 33 per cent as compare to last year. It is creating problems for private sectors to borrow from banks
  • MQM leader Ishrat ul Ibad, has take charge of his Governor post. This news has provide confidence to local investors
  • But on the weekend law and order situation in Karachi was again deteriorated
  • Average daily volume jumped 112 percent over the previous week to 85 million shares. This also includes extraordinary trading in cheap right shares of the NIB Bank in the last session
  • US Congress has rejected the proposal to cut all aid of Pakistan
  • ICI is planning to invest Rs. 2 Billion for coal equipment at soda ash unit
  • The export of textiles in Pakistan has reached $13.07 Billion
  • Attock Refinery has initiated $27 million expansion project

Kohinoor Energy, Rafhan Maize, Faysal Bank, Arif Habib Corporation and Azgard Nine were the major gainers while Grays Of Cambridge, Gharibwal Cement, Nestle Pakistan Limited., Ibrahim Fibers and E.F.U. Life Assurance were major losers at KSE last week.

NOTE: The information posted in this blog (forum) is based on current afairs & invstors point of view. There may be discrepancy in the ground realities.

Written by: Rana Khurram

Karachi Stock Exchange Weekly Analysis 17 July, 2011

The Karachi Stock Exchange (KSE) market has witnessed a bearish trading week. The Karachi Stock Exchange (KSE) 100-share index has reached 12,346.52 points by shedding 43.60 points or 0.35 percent.

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

  • Investors have serious concerns over law and order situation in Karachi, rising fiscal deficit and withholding of $800 million military aid to Pakistan from US
  • Political turmoil and uncertainty especially between PPP and MQM, has really hurt sentiment of investors
  • Investors will remain cautious in upcoming week also
  • Fine results are expected during upcoming results season. Especially from energy, fertiliser, and banking sectors
  • ENGRO has increased prices of Urea for Rs145/bag (net increase Rs125,GST impact of Rs20), while FFC and FFBL are expected to follow suite
  • The chemical sector consequently gained 2.0 percent during the week
  • Retail and institutional interest remained limited after fall in global capital markets and commodity prices on concerns over Europe debt crises
  • SBP (State Bank of Pakistan) has released trade deficit numbers, which showed country’s deficit for FY11 at $15.6 billion. And foreign investment numbers have also declined by 8.0 percent to $1.9 billion, FDI (Foreign Direct Investment) have dropped by 27 percent to $1.6 billion
  • Banks deposits and investment up by 10% and 15.7% in 2Q11. Auto sales are also up by 4% in 2010-11
  • Pakistan fuel oil imports for June is all time high, which is nearly 850,000 ton

The Top-5 scrips at the futures counter, constituting 74 percent of the total open interest were POL followed by Engro, LUCK, FFC and FFBL. Unilever Pakistan Foods, Unilever Pakistan Ltd., Fauji Fertilizer Bin Qasim, Fauji Fertilizer, Arif Habib Corporation were the major gainers while Gharibwal Cement, Pace (Pak) Ltd, P.T.C.L., Indus Motors and Engro Corporation were major losers at KSE last week.

NOTE: The information posted in this blog (forum) is based on current afairs & invstors point of view. There may be discrepancy in the ground realities.

Written by: Rana Khurram

Karachi Stock Exchange Weekly Analysis 10 July, 2011

The Karachi Stock Exchange (KSE) market was doing fine on start of week and reached at 12,576 points, but on the last session of week it falls. The Karachi Stock Exchange (KSE) 100-share index has reached 12,390.12 points by shedding 94.05 points.

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

  • Investors have serious concerns over law and order situation in Karachi
  • Political turmoil and uncertainty has really hurt sentiment of investors
  • KSE Volume was at its 10 months lowest (since September last year )
  • Investors will remain cautious in upcoming week also
  • Falling cotton prices and rising oil prices has also affected movement of KSE (Karachi Stock Exchange) index
  • Fine results are expected during upcoming results season. Especially from energy, fertiliser, and banking sectors
  • CPI (Consumer Price Index) reading comes in lower MoM at 13.13% in Jun‐11
  • Foreign Exchange reserves of Pakistan has reached up to $18.25 billion. Which is the highest value reached in history of Pakistan
  • Nestle Pakistan has declined sharply by 21 percent during the week
  • Limited foreign and local institutional interest was witnessed in the earnings announcements session, which had a negative impact on investor sentiment

Bank Of Punjab, Jahangir Siddiqui & Co, P.N.S.C, National Bank Of Pakistan, Pak. Int. Cont. Ter. Ltd were the major gainers while Nestle Pakistan Ltd, Indus Dyeing, Habib Metro Bank, Bestway Cement and Agritech Limited were major losers at KSE last week.

NOTE: The information posted in this blog (forum) is based on current afairs & invstors point of view. There may be discrepancy in the ground realities.

Written by: Rana Khurram

Karachi Stock Exchange Weekly Analysis 3 July, 2011

The Karachi Stock Exchange (KSE) market has managed to close on green zone. The Karachi Stock Exchange (KSE) 100-share index has reached 12,484.17 points by increasing 19.91 points or 0.15 per cent.

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

  • Upcoming corporate results – starting from mid July, will decide the movement of Karachi Stock Exchange index
  • Power and crisis are exceeding and tariffs are expected to be increased
  • Political turmoil and uncertainty, especially after the decision of MQM (Mutahida Qaumi Movement) to quit both the provincial and federal governments
  • Nestle was dominant throughout the week and increased up to 15 per cent during the week
  • FBR(Federal Board of Revenue) has reported that the target of tax collecting Rs. 1588 billion has been achieved
  • WTO (World Trade Organization) has announced to not granting GSP plus status to Pakistan. Which has badly affected the performance of textile sector
  • After decline in global markets, local investors are also not showing interest in buying
  • There is an expectation of urea price hike, that’s why investors are showing interest in buying Fertilizer stocks. Government is considering to increase gas supply rates for fertilizer companies

Nestle Pakistan, Wyeth Pak, Siemens Engg, Colgate Palmolive and Bata Pakistan were the major gainers while Unilever Pakistan, Rafhan maize, Philips morris, PSO, National Refinery were major losers at KSE last week.

NOTE: The information posted in this blog (forum) is based on current afairs & invstors point of view. There may be discrepancy in the ground realities.

Written by: Rana Khurram

Engro Foods Limted (Offer of Public shares)

Engro Food is offering its 27 million shares for public. Each share will have value of rupees 25/-. This price includes rupees 15/- as premium. You can apply for shares from July 5, 2011 to July 7, 2011. The Engro Food Limited quarterly sales crossed rupees 6.5 billion during the first quarter of year 2011 while it earned a net profit of rupees 117 million during the same period. So investing in Engro Food seems an intelligent decision. Click Here to download application form.