Weekly review: KSE index manages to edge past 30,000-point barrier
Gains only 215 points with uninspiring corporate results offsetting political stability
KARACHI:
The stock market remained relatively stable this week with a mix of news like uninspiring corporate result announcements and a stabilising political situation, which resulted in the KSE-100 index ending with a slight rise of 215.39 points (0.7%) during the week ended October 24.
The benchmark index rose above the 30,000-point barrier and ended the week at 30,098.49. Global economic conditions were largely positive after last week’s news of crude oil prices hitting multi-year lows.
Volumes throughout the week were on a steady incline, rising 24%, as in the last two days more than 190 million shares were traded in comparison to Monday’s tally of 127 million. Average daily value rose 18% during the week.
Foreign investors were net sellers of $15 million worth of equity. The current account recorded a $3 million surplus in September due to recovery in exports and flat imports. Forex reserves showed a slight decrease of 1% on a week-on-week basis.
Politics was in the limelight as MQM announced its departure from the PPP-led Sindh government following a dispute after last Sunday’s Karachi rally, led by PPP’s Bilawal Bhutto Zardari. Meanwhile, there was a sigh of relief among government circles as the Pakistan Awami Tehreek called off its sit-in in Islamabad.
Reports of foreign selling caused volatility in the market on Monday and Tuesday, causing slight declines. Falling coal prices, however, rejuvenated buying interest in cement shares ahead of result announcements.
The major rise was recorded on Wednesday (246 points) with the help of oil stocks.
The Supreme Court’s judgment allowing transfer of shares in the secondary public offering of Oil and Gas Development Company Limited (OGDCL) also provided some cushion.
Textile exports recorded a 4% year-on-year decline in the first quarter of the current fiscal year. Foreign direct investment also declined 26.5% YoY in the first quarter.
The oil and gas sector remained depressed but the index stood its ground and went past the 30,000-point mark on the back of some positive financial results.
However, the results were mainly disappointing as only Engro Fertilizers – with a 70% rise in earnings in the first nine months of calendar year 2014 – impressed. Balance sheets of other major companies could not provide a significant boost.
While the 30,000 barrier was surpassed this week – the only eye-catching outcome of the index movements – volatility will most probably prevail as corporate results continue to pour in. Developments on the political front and oil prices will again influence the stock exchange.
Winners of the week
Hum Network Limited
Hum Network Limited operates satellite television channels. The company operates a channel targeted primarily at women, one about food, and one that covers lifestyle and entertainment.
Pakistan International Container
Terminal Pakistan International Container Terminal operates a container shipping facility in Karachi, Pakistan.
Cherat Cement
Cherat Cement Company Limited manufactures and sells cement and clinker.
Losers of the week
Gul Ahmed Textile Limited
Gul Ahmed Textile Mills Limited manufactures and sells textile products.
Mari Petroleum Company Limited
The Company specialises in the drilling, production and selling of natural gas.
Allied Rental Modaraba
Allied Rental Modaraba operates an equipment rental company. The Company rents branded power generators, material handling equipment and construction machines for all types of applications.
Published in The Express Tribune, October 26th, 2014.
The stock market remained relatively stable this week with a mix of news like uninspiring corporate result announcements and a stabilising political situation, which resulted in the KSE-100 index ending with a slight rise of 215.39 points (0.7%) during the week ended October 24.
The benchmark index rose above the 30,000-point barrier and ended the week at 30,098.49. Global economic conditions were largely positive after last week’s news of crude oil prices hitting multi-year lows.
Volumes throughout the week were on a steady incline, rising 24%, as in the last two days more than 190 million shares were traded in comparison to Monday’s tally of 127 million. Average daily value rose 18% during the week.
Foreign investors were net sellers of $15 million worth of equity. The current account recorded a $3 million surplus in September due to recovery in exports and flat imports. Forex reserves showed a slight decrease of 1% on a week-on-week basis.
Politics was in the limelight as MQM announced its departure from the PPP-led Sindh government following a dispute after last Sunday’s Karachi rally, led by PPP’s Bilawal Bhutto Zardari. Meanwhile, there was a sigh of relief among government circles as the Pakistan Awami Tehreek called off its sit-in in Islamabad.
Reports of foreign selling caused volatility in the market on Monday and Tuesday, causing slight declines. Falling coal prices, however, rejuvenated buying interest in cement shares ahead of result announcements.
The major rise was recorded on Wednesday (246 points) with the help of oil stocks.
The Supreme Court’s judgment allowing transfer of shares in the secondary public offering of Oil and Gas Development Company Limited (OGDCL) also provided some cushion.
Textile exports recorded a 4% year-on-year decline in the first quarter of the current fiscal year. Foreign direct investment also declined 26.5% YoY in the first quarter.
The oil and gas sector remained depressed but the index stood its ground and went past the 30,000-point mark on the back of some positive financial results.
However, the results were mainly disappointing as only Engro Fertilizers – with a 70% rise in earnings in the first nine months of calendar year 2014 – impressed. Balance sheets of other major companies could not provide a significant boost.
While the 30,000 barrier was surpassed this week – the only eye-catching outcome of the index movements – volatility will most probably prevail as corporate results continue to pour in. Developments on the political front and oil prices will again influence the stock exchange.
Winners of the week
Hum Network Limited
Hum Network Limited operates satellite television channels. The company operates a channel targeted primarily at women, one about food, and one that covers lifestyle and entertainment.
Pakistan International Container
Terminal Pakistan International Container Terminal operates a container shipping facility in Karachi, Pakistan.
Cherat Cement
Cherat Cement Company Limited manufactures and sells cement and clinker.
Losers of the week
Gul Ahmed Textile Limited
Gul Ahmed Textile Mills Limited manufactures and sells textile products.
Mari Petroleum Company Limited
The Company specialises in the drilling, production and selling of natural gas.
Allied Rental Modaraba
Allied Rental Modaraba operates an equipment rental company. The Company rents branded power generators, material handling equipment and construction machines for all types of applications.
Published in The Express Tribune, October 26th, 2014.