Karachi Stock Exchange Weekly Analysis 4 December, 2011

The Karachi Stock Exchange (KSE) market activity was bearish. KSE 100 index has reached 11,372.21 points by losing of 275.93 points or 2.36 per cent. Following news have played vital role in Karachi Stock Market index movement:

Local and Foreign investors have serious concerns over NATO (North Atlantic Treaty Organization) air strikes. But Pak US relations will improve eventually and will help in recovery of KSE Political turmoil and noise was also witnessed as supreme court commenced hearing on controversial Memo-gate scandal US senate voted to tie strings on future aid of Pakistan. But Finance Minister Dr Abdul Hafeez Shaikh clarified at a press conference on Saturday that US has not blocked any kind of financial aid to Pakistan, including military assistance Law and Order situation in country during holidays (on the occasion of Ashura) will also play an important role for market direction SBP (State Bank of Pakistan) has maintained its status quo on policy rate in November 2011 MPS review. It will make banking stocks stable in next weeks During month of October 2011, Increase in Urea sales were recorded by 21% YoY, while DAP sales were down 47% YoY Petroleum prices e.g. diesel and gasoline have been increased in range of 1-5% Refineries seek withdrawal of turnover tax Gas Development Levy of Rs. 197/mmbtu have bee proposed for fertilizer The rupee has lost about 2.4 percent in last one month. It touched a record low of 89.01 to a dollar on Friday. Rupee depriciated 1.39% during the week Foreign Portfolio Investors have offloaded shares of worth $2.3 million Federal Bureau of Statistics released the consumer price index figures for Nov 2011, which rose by 10.19 percent from a year earlier DGKC outperformed the market by 4.4 percent on the back of sustained high cement prices. Engro too outperformed the market by 1.3 percent (on a dividend adjusted basis) on restoration of gas supply to the company while FFC underperformed the benchmark index by 5.5 percent owing to cut in urea prices Tax collection improved by 29%YoY in 1QFY12
Colgate Palmolive, Tandlianwala Sugar, Javedan Cement, Indus Dyeing and Agritech Limited were the major gainers while National Refinery, Nestle Pakistan Limited, Siemens Engineering, Shifa Int Hospitals Ltd and Soneri Bank were major losers last week.