Saturday, January 7, 2012

Karachi Stock Exchange (KSE) outlook 2012

Karachi Stock Exchange (KSE) outlook 2012 : The stock market continued the downward trend on the last trading session of the week with continuous selling in oil stocks leading the way. The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.56% or 62.53 points to end at the 11,125.35 point level.

The KSE 100-share index fell by about 684 points, or 5.68 percent, in the year ending on December 31, 2011 and stood at 11,347.66 points. The market capitalisation declined by Rs302 billion, or nine percent, to Rs2,945 billion while average daily turnover fell to 10-year low of 81 million shares.

Majority of investors attributed the decline in KSE in 2011 to massive foreign selling. According to the National Clearing Company of Pakistan Limited, foreigners sold net shares worth $127.21 million in the year 2011 against $526.37 million net buying in the previous calendar year 2010.

The Karachi Stock Exchange (KSE) is expected to recover and sustain above 13,000 points threshold in 2012, KSE should recover and sustain around 13,500 points in 2012

the energy and fertiliser stocks would continue to perform in 2012 due to strong fundamentals, while fewer banks will perform once the process of economic recovery is commenced.

that investors remained cautious during the year because of
(1) strained relationship between Pakistan and the US,
(2) falling popularity of the incumbent government,
(3) US debt rating downgrade along with European debt crisis,
(4) energy shortfall,
(5) collection of Capital Gains Tax and
(6) complex and stringent regulation of leverage products by SECP.

investors to keep close focus on foreign movement at KSE, as debt crisis in Europe would compel them to trim their holdings in emerging Asian markets. “We believe foreigners will continue to be a major force in the Pakistani capital market as they hold $2.4 billion worth of shares which is 29 percent of free-float and seven percent of market capitalisation. For the latest updates on the stock market, visit Stock Market Today
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