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Weekly Market Report (Karachi Stock Exchange)-(April 12,2014 to April 18, 2014)

KSENobody was anticipating such an extremely volatile week where no trend can be generalized. Karachi stock Market touched an all time high level on Thursday while market observed a drastic loss on Friday, unexpectedly. The greater volatility can be exposed through a straight 0.61% fall in the overall market activity while Thursday’s activity was highly bullish. It points towards elevated extent of speculation in the market all along. Karachi Stock Exchange 100 index closed on 29,069.93 points volume. It touched ever highest on Thursday i.e., 29,672 points. Karachi Stock Exchange- 30 index closed on 20,297.49 points after losing a noticeable 1.15 % and 236.2 points volume.

However the overall trading activity was quite afloat incrementing 14 percent Week on Week on an average 259 Million shares during the previous week. This decline is being remarked as an outcome of ever rise has a fall but this was not normal. An abnormal fall after touching the highest level is an outcome of heightened volatility and unpredictability of traders’ psyche and sentiments. US dollar has also started gaining strength against Pakistani Rupee. For instance, during the previous week, it raised with Rs. 2.50. Foreign investors showed a favorable behavior by flowing shares worth 7.5 Million US dollars during last week.

It is expected that the upcoming week would be somehow crucial. Monday is expected to stay down because of two major news on the weekend i.e., Hamid Mir attacked in Karachi on Saturday, April 19 and Musharraf arrival in Karachi. Both are quite catchy news and can make significant impact over the index activity momentum all along. Upcoming week does not bring too much positive expectations. It is a week of watch dogs instead of blood hounds traders. Upcoming week does not seem to be supportive for selling.

Following is the list of top gainers, losers and volume leaders:

Top Gainers Top Losers Volume Leaders
EFU General Ins Rafhan Maize Prod. LPCL
Pak Tobacco Co.XD Avedan Corporation FABL
IGI Insurance International Steels Ltd, LOTCHEM
Lafarge Pakistan Nestle Pakistan NIB
Ghani Glass Century Paper FFBL
Indus Motor Muree Brewery Co Ltd MLCF
Lucky Cement Kohinoor Textile KEL
Thal Limited Cherat Cement FML
Packages Limited Pak.Int.Con. XDXB UBL
Shell Pakistan Askari Bank Ltd JVDC


Following are the important News that played vital role in affecting the marketing activity:

– Taliban refused to extend the cease fire

– Peace talks with TTP are continued

– Inflation based on CPI raised 0.96 percent during the month of March

– IMF has granted two remarkable waivers to Pakistan

– World Bank announces to prove 10 Billion USD to Pakistan by the year 2019

– IMF has suggested the central bank to relook the monetary policy by tightening it

– Government of Pakistan plans to conduct international road shows in six international locations to spread the awareness and ultimately to attract the international investors towards Karachi Stock Exchange

– Reserves of KPK government have been declined in the third quarter of the FY 13-14

– SBP reveals that it has achieved its growth targets of the current FY. GDP growth is assumed to lie somewhere between 3.5 to 4.5 percent.

About Emaad Qureshi