KSE witnesses eventful week

On the back of better results announced by various companies, the Karachi Stock Exchange (KSE) has witnessed an eventful week ended on October 25. The KSE-100 Index gained 845.81 points, closed at the level of 22,445.59 against 21,599.78. Besides, average daily volumes witnessed same trend, up by 115 percent, stood at 133.22m shares in comparison of 61.98m shares.
Market capitalisation remained on same side, stood up at Rs5.336 trillion from Rs5.154 trillion and average daily value also stayed in green circle, increased by 154.6 percent, stood at Rs5.24 billion versus Rs2.06 billion.
Commenting on market performance, various analysts said that investor interest in the market returned after almost a week long Eid holidays where investors who had preferred to stay on sidelines pre- Eid, entered back in the market with hopes of decent gains.
They said that these eventually materialised for select stocks on the back of their expected/announced financial results for Jul-Sep 2013 period. A plethora of result announcement kept investors alert and on their toes this week.
Amongst the major results announced during the week, EFOODS posted a sharp decline in 3Q earnings and cumulatively posted 9M2013 EPS of just Rs1.62, down 23 percent YoY, owing to contraction in volumetric sales and margins.
Consequently, they added, EFOODS underperformed the market by 20 percent WoW. Amongst E&P sector stocks, OGDC reported higher than consensus expected 1QFY14 EPS of Rs7.81, up 31percent YoY, and hence was able to outperform the market by 6percent WoW.
Analysts said that in the IPP space, HUBCO and KAPCO both reported below expected results despite a better liquidity position due to circular debt resolution towards the end of June 2013.
Meanwhile in the banking sector, NBP bucked the trend of other banks' results (which were by-and-large above expected) and announced a surprisingly weak 3Q result on account of sharply higher provisions and write offs, they added.
The universe top performers of the week were: Fauji Cement, Bank Al-Falah, Oil & Gas Development Company, MCB Bank, Pakistan Oilfields, Allied Bank, Fatima Fert.Co, Pakistan Telecom Company, Hub Power Company and Lucky Cement.
According to day-by-day details, after long Eid-holidays, Bulls took charge at KSE on the first session of week as KSE-100 index witnessed recovery of 155.17 points, closed at the level of 21,754.95 against 21,599.78 level.
Bull-run continued on the floor of local bourse market as it witnessed positive session on Tuesday. The KSE-100 Index recovered 475.48 points, closed at the level of 22,230.43 against 21,754.95 level.
Karachi Shares Market witnessed one more positive session on Wednesday as the KSE-100 Index recovered 116.86 points, closed at the level of 22,347.29 against 22,230.43 level.
The market witnessed fourth consecutive Bull-run session on Thursday as the KSE-100 Index recovered further 13.56 points, closed at the level of 22,360.85 against 22,347.29 level.
And on Friday, Bearish trend was continued at local equities market due to the better results announced by various companies. The KSE-100 Index recovered further 84.74 points, closed at the level of 22,445.59 against 22,360.85 level.