RECORDER REVIEW
KARACHI: A positive trend was witnessed at Karachi Stock Market during the outgoing week ended on July 24, 2014. Cement and banking sectors remained in the limelight throughout the week while the start of a result season also being the major trigger in the market.
In a small four trading-day week, the benchmark KSE-100 moved up at an all time high of 30,475 points and surged by 252.86 points compared to 30,224.89 a week earlier.
An analyst at the KASB Securities said that the KSE- 100 index rose by a small 0.8 per cent WoW. Volumes were robust, with an average trading daily volume picking up by impressive 32 per cent WoW. Similarly, an average daily value traded rose by 21 per cent WoW to $ 91 million. Foreigners continued to support the market with the FIPI rising by 4 per cent WoW to $ 25.1million in a small four trading-day week, he added.
EFU General Insurance, EFU Life Assurance, Askari Bank, Cherat Cement and ICI Pakistan were the major gainers while Agri-tech Limited, Pak Cables, K-Electric Limited, Kohat Cement and Sui Southern Gas were the major losers in the benchmark KSE-100 this week, he mentioned.
The average daily value increased by 21 per cent to Rs 8.998 billion during the outgoing week compared to Rs 7.45 billion a week earlier. The average daily volume also surged by 32 per cent to Rs 172.763 million shares against Rs 131.02 million shares during the previous week. During the last week, the market capitalisation gained Rs 70 billion to Rs 7.153 trillion up from Rs 7.083 trillion.
News highlight of the week were State Bank SBP leaves discount rate unchanged at 10 per cent. The government may keep POL prices unchanged in Aug-14. Gadoon Textile Mills to invest $ 2.7million in LEPCL and Fatima signs MoU for $ 1.6 billion US fertilizer plant. Bestway acquires Lafarge Pakistan Ltd.
Other key highlights of the week were trade deficit down 2.5 per cent YoY to $ 20.0 billion, International Monetary Fund (IMF) expected to approve $ 550 million for Pakistan and T-bills auction raising Rs 115 billion versus target of Rs 100 billion.
The KSE on Monday witnessed a positive trend and the benchmark KSE-100 index surged by 188.34 points to close at 30,413.23 points.
On Tuesday, the Karachi equity market trimmed by 11 points and the benchmark KSE-100 index closed at 30,402.09.
A bullish trend was observed on Wednesday and the benchmark KSE-100 index surged by 63 points to close at 30,465.43.
On Thursday, the share market remained at a positive side and the benchmark KSE-100 increased by 9 points to close 30,474.75 points.
However, the KSE on Friday remained closed on account of Ramazan Holiday.
Raheel Ashraf, an analyst at JS Global said that the Karachi equity market sustained the last week’s positive momentum to close at an all time high of 30,475. On the macro front, the State Bank of Pakistan (SBP) in its first Monetary Policy Statement (MPS) of FY15 kept the policy rate unchanged at 10 per cent, he said
The Cement sector remained in the limelight, in anticipation of acquisition of Lafarge Pakistan Cement (LPCL). The LPCL on the last day of the week announced the acquisition of Lafarge shareholding by Bestway Cement for a total enterprise value of $ 329 million, he added
In the banking sector, Askari Bank (AKBL) was the star performer up by 13 per cent WoW as it reported higher than expected 1H2014 EPS of Rs1.7 along with an interim cash dividend of Re1 per share. On the contrary, fertilizer sector remained under pressure as Fauji Fertilizer Bin Qasim (FFBL) and Fauji Fertilizer Company (FFC) reported lower than expected 1H2014 earnings, Raheel mentioned.
