Pakistan stock market outlook week september 12 2011

Indonesia stock info - Pakistan stock market outlook week september 12 2011 ; Pakistani stocks will continue the upward momentum during the next week as some of the largest listed companies announce full-year financial results, traders said. A lot also depends on the security situation in Karachi, they added.

Attock Group of Companies, which includes heavyweights like Pakistan Oilfields Limited (POL), Attock Petroleum, Attock Refinery and National Refinery Limited (NRL), have been actively traded in the past week on speculation about their earnings and payouts, they said.

“There is uncertainty in the week ahead. The market should rise as investment appetite has increased, but the US economic growth fears, our own political wrangling and the fact that there are not many investors left, makes a prediction really difficult,” said a fund manager.

The benchmark Karachi Stock Exchange (KSE) 100-share index rose 215 points, or 1.95 percent, during the week to 11,286 over the previous week after shedding 9.2 percent in August in tandem with regional capital markets.

Invest Capital, a brokerage house, said that improvement in international markets will boost the morale of local investors who fear offshore funds might sell heavily. “But the market could take a correction once the results are through,” it said.

Average daily volume rose sharply by 83 percent to 82 million shares, luring at least some of the retail investors back to equity investments.

National Bank of Pakistan (NBP) hit the upper lock day after day, appreciating 20 percent overall. There seems to be no clear reason for so much interest, but analysts said some large institutions which had earlier sold the valuable share at high price were buying it back cheap.

Lotte Pakistan PTA has again become one of the most traded stocks. It surged eight percent during the week in consequence of the rise in price of cotton.

Director at Arif Habib Investments Ahsan Mehanti said that KSE has been mainly led by oil, fertiliser and banking stocks. “There was also renewed foreign interest after Nishat Group announced record earnings.”

However, Nishat Power was hammered as the power producer, struggling to get funds from the state-run buyers, did not announce dividend even after earning substantial profits. Pakistan Telecommunication Company Limited (PTCL) was also beaten down as its profits shrank and business outlook worsened.

Mehanti said that rise in global commodity prices also lifted some of the stocks in the local market. The efforts of the finance ministry to reduce the inter-corporate circular debt contributed to the buoyant mood, he added.

He said the optimism was increased by the government’s efforts to sort out the matters with Muttahida Qaumi Movement. Notwithstanding the valuation of the shares, which have become very attractive after sliding in past weeks, Pakistan’s economy could face a setback.

Slowly, the impact of heavy rains and floods in Sindh province is becoming visible. Analysts say that fiscal constraints of the government might again lead to humanitarian crisis that erupted last year, when hundreds of thousands were displaced and the situation was managed only with the help of foreign aid. Invest Capital said that 50 to 60 percent cotton crop in the rural parts of Sindh is feared to have been damaged by the floods, which would hit the economic growth prospects for this year. “The country is most likely to miss out on the cotton production target of 15 million bales in the current fiscal year as well.”

In the week, Pakistan and Iran moved to enhance economic coordination and signed four memorandums of understandings. Foreign exchange reserves were still high and portfolio investment increased, source http://www.thenews.com.pk

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