Sunday, July 18, 2010
LAHORE - The positive economic fundamentals enabled the equity market to close in the green during first three trading sessions of thee outgoing week. However, the investors generally preferred to book profits towards the end of the week keeping the index under pressure.
The KSE 100 closed at 10,153 level, up by 1.80 per cent WoW. Total traded volume during the week stood at 80.3mn shares compared to 55.2mn traded last week, while average daily traded value clocked in at USD37.1mn compared to USD23.4mn last week.
The week began on a bullish note following the positive news flow of some consensus on CGT,s modalities and finalization of recommendations for the introduction of leveraged products.
Expert said that some key economic data sets for the year ended June 2010 were released, most of which depicted improvement in the overall economic fundamentals enabling the market to close in the green during first three trading sessions.
Remittances for the year FY10 clocked in at record levels of USD8.9bn depicting a 14% YoY increase compared to PKR7.8bn received in FY09. It is also important to note that the said inflows remained higher than the target of USD7bn for the same period.
As per FBS record, trade deficit for the month of Jun10 was recorded at USD1.4bn, down by 2% YoY. Trade deficit for the year clocked in at USD15.3bn, down by 10% YoY.
OGDC today announced a gas discovery at Sheikhan Well # 01 (located in Kohat, Khyber-Pakhtoonkhwa) with initial flow rate of 15mmcfd. Based on the company's ownership stake of 30%, we estimate an EPS impact of PKR0.03/share to be materialized in up to 2 years.
FY10 witnessed a dramatic improvement of 43% YoY in sales of automobiles in the country followed by 2 years of negative growth (-9% during FY08; and -47% during FY09). 140,307 units were sold during FY10 compared to 98,161 units during the corresponding period last year.
Improving trade balance, growing remittances and LSM recovery have improved confidence of investors, however pending issues related to CGT modalities and leveraged product continue to dampen sentiments. Clarity on the same is likely to be a key trigger regeneration of interest for investors. In the short term however, we believe that market movements remain muted as investors wait for key macro triggers and clarity on the aforementioned pending pressing issues.
The KSE 100 closed at 10,153 level, up by 1.80 per cent WoW. Total traded volume during the week stood at 80.3mn shares compared to 55.2mn traded last week, while average daily traded value clocked in at USD37.1mn compared to USD23.4mn last week.
The week began on a bullish note following the positive news flow of some consensus on CGT,s modalities and finalization of recommendations for the introduction of leveraged products.
Expert said that some key economic data sets for the year ended June 2010 were released, most of which depicted improvement in the overall economic fundamentals enabling the market to close in the green during first three trading sessions.
Remittances for the year FY10 clocked in at record levels of USD8.9bn depicting a 14% YoY increase compared to PKR7.8bn received in FY09. It is also important to note that the said inflows remained higher than the target of USD7bn for the same period.
As per FBS record, trade deficit for the month of Jun10 was recorded at USD1.4bn, down by 2% YoY. Trade deficit for the year clocked in at USD15.3bn, down by 10% YoY.
OGDC today announced a gas discovery at Sheikhan Well # 01 (located in Kohat, Khyber-Pakhtoonkhwa) with initial flow rate of 15mmcfd. Based on the company's ownership stake of 30%, we estimate an EPS impact of PKR0.03/share to be materialized in up to 2 years.
FY10 witnessed a dramatic improvement of 43% YoY in sales of automobiles in the country followed by 2 years of negative growth (-9% during FY08; and -47% during FY09). 140,307 units were sold during FY10 compared to 98,161 units during the corresponding period last year.
Improving trade balance, growing remittances and LSM recovery have improved confidence of investors, however pending issues related to CGT modalities and leveraged product continue to dampen sentiments. Clarity on the same is likely to be a key trigger regeneration of interest for investors. In the short term however, we believe that market movements remain muted as investors wait for key macro triggers and clarity on the aforementioned pending pressing issues.
-www.nation.com.p
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