KSE-100: Remained Topsy-turvy No new dimensions to the triggers kept the market Topsy-turvy though on intra-day an all time high of 27,427.04 was recorded. The numbers for fiscal deficit and trade deficit bode well but confusion again surfaced on issue of Taliban & Mushrraf. The KSE-100 index posted gain of 232.24 points or 0.86% to close at 27,124.74 levels. The average daily turnover increased by 12.43% from 251.63mn shares to 282.90 shares. Key Highlight during the week The countrys trade deficit narrowed down by 4.89% to US$12.54bn as compared to US$13.18bn in Jul-Feb FY-14. The govt. has shared details with the IMF of foreign inflows of US$1.5bn. The balance of payment problems of the country are over with an increase in foreign inflows and a US$2bn improvement in net foreign exchange reserves of SBP during the last 1 month. Remittances sent by overseas Pakistanis crossed US$10bn during the first 8 months (Jul- Feb) of this FY-14. The SBP will release Monetary Policy Statement on March 15 (today) for the next 2 months with the expectation of some cut in key policy rate of 50-100 basis points. Foreign exchange reserves increased to US$9.37bn against to US$8.74bn. The govt. will hold auction for 3G and 4G telecom licenses on April 23, Ishaq Dar decided that the bids will be submitted by the bidders to PTA on April 14, 2014. The Hub Power Co. (Hubco) has decided to set up a new imported coal-based power generation plant of 600MW capacity with an investment of US$800mn. Market Outlook: Volatility to Increase! Strong Perception towards reduction in Discount rate by 50 to 100 basis points had developed given improvement in Economic Indicators. Level of 26,500 had emerged as strong support and room had been created to extent of 27,500 levels. Buy on weakness based on values should be the strategy.
Posted on: Mon, 17 Mar 2014 04:55:30 +0000
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