13,932 - Uncertainty leads to panic selling

13,932 - 14k breaksAfter a strong recovery to 14,321 the day before, the KSE-100 index plunged down to an intra-day low of 13,823 based on rumours of a state of emergency, leading to panic selling. The courts need to pull their finger out and finish the decision of G.Mush’s validity to stand for another 5 years. The uncertainty is whats killing the mkt, although a correction was needed to fill the gaps in the rapid rise from 13,000 - 14,900. Keep the Vaseline at close reach ! Downside sees 13,700 ish

News : Total profit of the cement sector has declined by 87 percent to Rs 252 million in the first quarter of 2008 financial year, ending September 30 as compared to Rs 1.88 billion in the corresponding period last year. Cement sector had a severe dent on gross margins, which were slashed to 12 percent in this period (30 percent in the first quarter of 2007 financial year), despite skyrocketing volumes resulting in only six percent rise in the top-line of the sector due to severe decline in retention.
"There were three major reasons behind this huge slump in the sector’s core earnings, including considerably slim retention prices (-28 percent YoY), due to continuous supply-overhang coupled with rainfalls, resulting in acute fluctuation in price levels of the manufacturers, observed during most of the quarter"… Aaj News

Upper Cap : Pace Pakistan

Lower Caps : AHL + AHSL + JOVC + TRG + NML

Market Low : 13,823.14 High : 14,330.90

Market Close : 13,932.41 — 387.01 points down 

source: karachistockmarket.blogsome.com

Filed under Cement, Daily Market News



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