KSE-100 index followed an upward trend from the outset with Monday’s news of rating upgrade of Pakistan’s foreign currency government bond from ‘negative’ to ‘stable’ which guided index to gain a cumulative 907 points (↑ 3.1% WoW). Index heavy OGDC contributed +125 points to the index as government finalized its shares off-load transaction timeline (Oct-14) while financials also gained +3.6% over Moody’s rating upgrade of five banks. LUCK also remained in limelight as the company announced its intent to setup a coal based power plant in Pakistan. Trading activity picked up significantly during the week with average volumes of 93.5mn, increasing 1.25x WoW. Foreigner’s interest remained strong during the week as foreign investors bought net shares worth ~USD24.2mn against a mere USD8.3mn in the previous week. Key news this week Government welcomes Moodys bond upgrade to stable Debt servicing: Pakistan to pay USD1.3bn to IMF in fiscal year 2015 FDI inflows reach USD4.3bn in financial year 2013-14 Five Pakistani banks: Moodys changes outlook to stable from negative Govt borrows over PKR56.1bn in PIBs’ auction This week top story Autos: Mellow end to FY14; rebound expected in FY15: Cumulative volumetric sales for FY14 clocked in at 136,888 units, up a mere 1.2% YoY. Auto sales were primarily affected by year end dip witnessed in INDU’s corolla variant (29,087 units), down 11% YoY on account of the upcoming new Corolla model launch. PSMC registered total sales of 77,608 units (up 2.6% YoY) primarily driven by Ravi (+16% YoY), and Cultus (+10%). HCAR on the other hand posted robust growth in volumes of 11.5% YoY led by its City (+22% YoY) variant. Future outlook We expect market to be track upcoming results season going forward whereas tomorrow’s monetary policy statement announcement would likely remain a non-event where consensus expectation is status quo. Reported by Elixir Securities.
Posted on: Fri, 18 Jul 2014 20:31:24 +0000
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