RECORDER REVIEW
KARACHI: After reaching at a new peak, Karachi Stock Exchange Limited (KSEL) took a breather last week where range bound activity was witnessed in the trading hall. The KSE-100 Index shed 179 points, closed at 29,069 level. On the contrary, average trading volume witnessed an increase of 18.0% to 367.95 million shares from 311.93 million shares and the average daily trading value remained on the same side, up by 8.5%, closed at Rs14.11 billion against Rs13.01 billion. While, the market capitalization touched a negative side, reduced by 0.7%, closed at Rs6.982 trillion from Rs7.034 trillion.
Samar Iqbal, an analyst at Topline Securities, said that local bourse witnessed a highly volatile week, closing 0.6% down at 29,070 after increasing by 3% in second week of April. Volumes rose by 18% to 368mn shares on average (Rs14bn, 8% up).
She said that US$2bn received on account of Eurobond sale and March quarter results could not play a role in throwing out the bears and they ruled over the market for a week almost.
“The PSO remained in limelight in expectations of getting another tranche from the Government to reduce circular debt. EFERT rallied 6%WoW after the government’s commitment for uninterrupted gas supply for the next two months,” she said.
She said that banking sector gained a momentum as investors continued to believe in sector-wise growth following better economic indicators. However, some profit-taking was seen in last trading session. The POL, APL, NRL announced their below-expectation results while the ATRL and AKBL earnings remained better than market consensus, Samar added.
News highlights of the week were: Four CMOs participated in bidding for 3G/4G license: The bids of four Pak CMOs (Mobilink, Telenor, Ufone and Zong) qualified for 3G/4G license auction. Reportedly, US$210mn has been received as nonrefundable pre-bid deposit, i.e. 15% of base price of bid amount. Pakistan is set to hold long-awaited auctions for 3G/4G network licenses on April 23.
The Current Account posts US$156mn deficit in March 2014: Pakistan’s Current Account (C/A) posted a US$156mn deficit in March 2014 vs. a surplus of US$167mn in February 2014. Resultantly, 9MFY14 C/A deficit stood at US$2.17bn vs. US$1.26bn deficit in 9MFY13. The big difference between two periods is primarily due to difference in realized CSF flows.
Key results announcements: AKBL, EFOODS, APL, ATRL, POL, INDU, UBL KAPCO and other companies announced their financial results during the last week.
Allied Bank, Askari Bank, United Bank, Fatima Fertilizer, Engro Polymer, Indus Motor Company, Habib Bank, Fauji Cement, D G Khan Cement and Pak Suzuki Motor were the top performers of the week.
According to session by session details: Last week began with a negative note at KSEL as the 100-Index shed 155 points, closed at 29,094 against 29,249 level.
Karachi shares market on Tuesday witnessed volatile session as the KSE-100 Index recovered only one point, closed at 29,095 level.
On the day when Prime Minister Mian Nawaz Sharif and former President Asif Ali Zardari met, the local bourse witnessed a highly positive session. Benchmark-100 Index got a jump of 362 points, closed at 29,458 level amid of healthy volumes.
The market on Thursday witnessed technical correction as the KSE-100 Index shed 107 points, closed at 29,350 amid of healthy volumes.
And on Friday, the local stock exchange witnessed another negative session as the KSE-100 Index shed 280 points, closed at 29,069 level.
