The Karachi Stock Exchange (KSE) 100- share index shed 81.42 points or 0.67 percent to close at 11,937.81 points as compared to 12,019.23 points of the previous week.
“Investors at the local bourse remained nervous throughout the week as political uncertainty rose sharply following the offer of resignation by Husain Haqqani (from his post as ambassador to the US) and departure of Pakistan People’s Party’s old stalwart Shah Mahmood Qureshi,” said JS Sec analyst Furqan Ayub. “Foreigners too were cautious, selling shares worth $1.3 million.”
The flow of remittances from overseas Pakistanis continued as they stood at $4.3 billion in four months of fiscal year 2012, surging by 23.2 percent on yearly basis. In October 2011 alone, remittances were up by 19 percent to $1.1 billion. Foreign investment on the other hand, plunged by 58.4 percent in four months of FY12 to $238.1 million with foreign direct investment at $340.2 million, down 27.7 percent. Foreign portfolio investment witnessed an outflow of $102.1 million in four months of FY12 as compared to an inflow of $101.3 million in the corresponding period last year.
New discoveries and high oil prices created interest in the E&P sector with Pakistan Oilfields Ltd and Oil and Gas Development Company outperforming the market by 2 percent and 1.2 percent, respectively. Among the fertilizer stocks, FFC underperformed the market by 6.1 percent as investors feared reversal in fertilizer prices on news of restoration of gas to the fertilizer sector.
Interest rate hopes to move Karachi stocks next week november 21 - 25 2011
Expectations about the next monetary policy statement will set the direction of the Karachi Stock Exchange the next week, said analysts on Saturday.
The policy is to be announced by the State Bank of Pakistan (SBP) near the end of November. A cut in discount rate, which the banks follow to set their lending rates, pushes the stocks up because lending rates for buying shares also go down, analysts said. It is also positive for the stock markets because listed companies financial charges fall, they added.
The State Bank announces monetary policy after every two months. In the last announcement, it reduced the discount rate by 150 basis points, or 1.5 percentage point, to 12 percent. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment