Drowning in credit debt?



The KSE-100 was steady this week and staged another choppy session. The stock market increased with 16.93 points and closed at 49,925.08 indexes.

The market was finalized at a flat note and traded between intraday high of 185 points and low of 62 points. The indexes were able to break the 50,000 limit but could not sustain it.

So, let’s look at the top five news that will affect the stock market next week.


OGDCL Circular debt!

The oil and the Gas Development Company limited failed to escape from its circular debt. These debts will also affect its exploration project. According to a senior official of the petroleum Ministry, the company has serious concerns over its circular debt. The company wants early settlement to save from liquidity crunch

However, in the last year, The Company has shown progress in its crude oil production. The limit touched to 50,000 barrels per day. The last line is an encouraging sign for the investors. The company shares are trading at the price of 156.90 PKR and increased with 49.43% changed within a year. Despite the circular debt, the analyst is predicting positive results. The forecast for the investors is to hold their positions in OGDCL.


Cement export was negative in first seven months.

The cement export dropped by 3.44% in first seven months (July-2016 to Jan 2017) of current fiscal year. According to All Pakistan Cement Manufacturer Association, during the month of Jan 2017, the export to Afghanistan decreased from .174 million tons to .166 million tons as compared to the same period last year.

The factors that contributed to the decline were the increase in the fuel prices and the other input cost. Most of the exporting countries like South Africa and India imposed trade barrier.

These stats are not a good sign for the cement investors. The shareholders should watch keenly the share price activity of Lucky Cement, Askari Cement, and the Fauji Cement in the next week.


Fraud Committed by MR securities and other brokerage houses.

The victims of fraudulent companies have informed the action committee to help them recover their amount. The investment amount is Rs 5 Million and victims want security and exchange commission to take some serious action against these companies. Adding more to this disappointing news, the owner of the MR security has disappeared several days ago.

Certainly, this news is not an encouraging sign for the investors. The brokers play a role of a bridge between investors and companies. The investors’ confidence level will be affected due to this negative activity.


Car sales dropped in the month of Jan-17

According to the data released by the Pakistan Automotive Manufacturers Association (PAMA), the car sales dropped to 4%. Total 20,844 units were sold as compared to the 21,717 units in the same period last year.

Pak   Suzuki sale decline was the chief contributor with a drop of 13% in the auto units.  Indus Motor Company also witnessed 3% decline in the sales.Production of the bikes, trucks and the auto rikshaw were the reason behind the decline. This news will affect the confidence of the investors in the auto industry.


SSGCL to start new project in Sindh and Balochistan

Sui Southern Gas Company will lay nine gas pipelines in different areas of Sindh and Balochistan. The nine gas pipelines will cover 160 kilometers of an area in two provinces. The company is using all its resources to meet the needs of the gas consumers.

SSGCL is a government owned company and its share price is currently trading at the price of 39.60. According to the analyst, the company will outperform the market. This news and the expert analysis will boost the confidence of the investors on SSGCL.



About Emaad Qureshi