14,259 - some recovery !
January 6, 2008
The KSE-100 index has truly been a rollercoaster ride in the last 6 sessions. The market has gone from 14,7772 down to 13,335 and back upto Friday’s close of 14,259 in the last week, with a record loss and and a record gain for a single session. There appears to be some stability now and with the upcoming result season due to start in a couple of weeks, the market could well go back to its previous high, or further. Volumes need to increase though. The next upside is 14,300-500.
News : Opec president Chakib Khelil said on Saturday he expected oil prices to keep rising during the first quarter of this year before stabilising in the following quarter. "The rise is likely to continue until the end of the first quarter 2008 and will stabilise in the second quarter," …Aaj News
The commercial banking sector offered a cumulative return of 66 percent as compared to KSE-100 index return of 40 percent in the calendar year 2007. ‘The main reason behind the sector’s excellent return can be attributed to the continued earnings growth momentum’, Atif Malik, senior analyst at JS Global Capital said. He further said, that in nine moths (January to September) of 2007, the banking sector profitability had depicted a growth of 14 percent. Moreover, mergers and acquisitions in the sector, such as that of Crescent Commercial Bank by ‘Samba’, Prime Commercial Bank by ABN Amro, and of Picic Group by NIB Bank in 2007, and expectations of further mergers and acquisitions increased the investors’ interest in the sector.
Among the 12 key banks, representing 84 percent of total market cap of the listed banking sector, NIB Bank and MCB Bank offered highest returns, of 259 percent and 91 percent respectively. NBP with a return of 21 percent, stood as the laggard in 2007 versus its peers.NIB Bank outshined others on the back of its acquisition of Picic Group which was completed at the end of the year, while MCB Bank attracted foreigners’ interest due to its strong entry in the consumer financing in 2007. Other noticeable performers, within banks in 2007, were Allied Bank (71 percent return) and Bank Al Falah (67 percent return)…Aaj News
UPPER CAPS : AHSL / AHL /APL / LUCKY / NIB BANK / Sitara Peroxide
Market Low : 13,996.42 High : 14,259.59
Market Close : 14,259.59 – 263.17 points up
