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Karachi, November 21, 2014 (PPI-OT): Weekly Reviews
This week the KSE-100 index surged above 32,000+ levels on the back of DR rate cut, however with profit taking during the end of the week, with the index settled at 31,495pts, upside of 0.48%WoW. News flows moving the market included 1)50bps rate cut in the latest MPS released by the SBP with the revised DR at 9.5%, 2) KASB bank and its subsidiary concerns being placed under a 6 month moratorium with a PkR300,000 transaction limit due to the parent bank’s inability to meet the SBP’s minimum capital requirement of PkR10bn, 3) DRAP’s announcement of deferring the release of its new drug policy to 26 Nov’14 and 4) results of the latest PIB auction showing a drastic cut in yields for 3yr paper (slashed 1.59bps to 10.89%), 5yr paper (slashed 1.87bps to 11.1%) and 10yr paper (slashed 1.45bps to 11.99%) while raising a combined PkR150.3bn against a target of PkR50bn.
Scrips leading the bourse included SSGC (+10.2%WoW, on the back of ECC’s nod with regard to 30% gas tariff increase), SNGP (+8.2%WoW), PSMC (+6.8%WoW) and AGTL (+6.7%WoW). Laggards for the week were HCAR (-7.9%WoW), NCL (-5.2%WoW), ICI (-4.8%WoW) and NML (-3.9%WoW). Volume leaders for the week were JSCL (118mn shares), MLCF (75.67mn shares), DGKC (53.5mn shares) and PIBTL (47.7mn shares), with an average daily turnover of 259mn shares traded (-8.5%WoW). FIPI for the week clocked in at US$4.8mn of net buying activity as opposed to net inflow of US$10mn during the previous week.