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THE KASB REVIEW
STOCK MARKET AT A GLANCE
  1. Stock market at a glance
  2. Finex week
  3. Stock Watch

Updated on  Jun 05, 2000

A Lot Happened........

The market endured a lot of volatility throughout the week, opening at the index level of 1510.44, and tumbling down 5% (81.43 points) on the very first trading day. Trading was suspended on Tuesday for the first time in history and Wednesday saw the index level recover 108 points, but this recovery was short lived as trading eventually ceased on a negative note at 1474,40, which translates into a negative 2.4% w-o-w.

Renewed panic selling from all quarters was the inevitable result of the damaging news that some of the KSE members had defaulted. Because of this, the market was barred to investors the next day to prevent a total collapse, while at the same time, an urgent high level meeting was called to resolve the crisis immediately before the settlement day.

Trading on Wednesday commenced on a cautious note but institutions ended a lot of support, followed by all and sundry proving that investors had already outgrown previous day's shock, and seemed ready to start anew. The day closed with a plus 108 points.

However, despite the positive development of Finance Minister's visit to the KSE on Thursday, 84 points were lost in apprehension that the LSE members had run into over exposure also. On the last day, trading operations at LSE were called off, but this development failed to dampen the renewed positive sentiment noted at KSE.

Amongst the blue chips that overall remained depressed, Adamjee Insurance took the most painful hit, starting at 101 and closing at 58 this week, reaching its lowest on Friday at 48.

The price movement of the Karachi Stock Exchange seems to be the perfect display of the Fabonacci study of retracements. Interpretation of these studies involve anticipating changes in trends as prices near the lines created by these studies.

For instance a trend line is drawn between two extreme points (i.e. trough and peak). A series of nine lines are drawn intersecting this trendline at the Fabonacci levels of 0.0 per cent, 23.6 per cent, 38.2 per cent, 50.0 per cent, 61.8 per cent, 76.4 per cent, 100.0, 261.8 per cent, and 423.6 per cent (some of which will be off the scale).

The level of 1400 is identified as a pivot. It is the level where prices will often retrace a significant portion (if not all) of the original move. Looking at a three years' chart, it is a 50 per cent retracement of the move that originated at 765 levels in the month of January 1998, and peaked at 2059 level in the month of March 2000. Price behavior at this level will be very critical for medium term direction. If 1400 holds, then index could strengthen to 1550 and face major resistance at 1700. However, failure at 1400 could lead to a collapse by another 200 points.

We expect some uncertainty to prevail until the default issue is fully resolved, and anxiety on the part of investors may restrict the market within the 1400-1600 band range. We remain cautious and will probe for values at weaknesses.

MARKET ROUNDUP

    

 

Last week

This Week

% Change

Mkt. Cap (US $ bn) 7.66 7.49 -2.22%
KSE 100 Index 1510.44 1474.40 -2.39%
Total Turnover (mn shares) 1063.86 814.32 -23.46%
Value Traded (US$ mn.) 715.05 732.52 2.44%
No. of Trading Sessions 5 4  
Avg. Dly T/O (mn. shares) 212.77 203.58 -4.32%
Avg. Dly T/O (US$ mn) 143.01 183.13 28.05%
MSCI Pakistan Index:      
Pak Rs. 107.78 101.99 -5.38%
US $ 53.50 50.44 -5.72%

                                                   Source: KSE, MSCI, KASB


ACTIVE ISSUE

Company

CL. Price

% Chg.

Turnover

Pakistan Telecommunication 24.75 -0.80% 332.515,500
Hub Power Co. 16.90 2.42% 165,370,500
Pakistan State Oil 161.55 2.31% 123,376,300
ICI Pakistan Limited 13.45 -3.58% 120,668,000
. 12.65 10.96% 69,449,000

LEADERS

Company

Up

CL. Price

Turnover

%Chg.

Pak Oil Field 13.90 99.90 39,800 16.16%
Pak Ins. Corp. 10.00 330.00 330 3.13%
J.O.V, & Co. 7.50 59.50 3,000 14.42%
Prosperity Weaving 6.00 18.00 4,000 50.006
Al-Ghazi Tractors 5.95 77.95 9,000 8.26%

LAGGARDS

Company Down Cl Price Turnover %Chg
Lever Brothers Pakistan 110.00 840.00 90,780 -11.58%
Adamjee Insurance 43.00 58.00 2,403,500 -42.57%
Bank of Punjab 18.00 13.50 3,250,500 -57.14%
Knoll Pharma l3.00 213.00 140,200 -5.75%
Nishat Mills 8.70 25.00 3,668,500 -25.82%

 


ASIA PACIFIC & AUSTRALIA

Exchange Index Level Change % Change
Bombay BSE 4453.47 +128.00 +2.96%
Hong Kong Hang Seng 15284.1 +342.91 +2.30%
Jakarta Composite 444.45 -9.88 -2.17%
Kuala Lumpur Composite 891.25 -13.28 -1 47%
Seoul Composite 760.69 +22.20 +3 01%
Singapore Straits Times 1910.4 +73.14 +3.98%
Sydney S&P/ASX200 3140.9 +52.90 +1.71 %
Tokyo Nikkei 225 16800.06 +105.76 +0.63%

 


EUROPE

Exchange Index Level Change % Change
Amsterdam AEX 665.84 +10 34 +1.58%
Frankfurt DAX 7316.45 +43.69 +0.60%
Istanbul XU-100 16177.55 -592.61 -3.53%
London FTSE 6518.7 +48.20 +0.74%
Madrid General 1011.65 +11.22 +1.12%
Milan MIB Tel 31927 +127.00 +0.40%
Paris CAC 6627.14 +27.43 +0.42%
Zurich SSMI 7816 +62.00 +0.80%

 


UNITED STATES OF AMERICA

Dow Jones Industrial 10652.20 129.87
NASDAQ Composite 3582.50 181.59