Stocks ride high at the Karachi Stock Exchange
Friday was a fantastic day at the Karachi Stock Exchange. The result season has already started and some blue chip company is announcing its results every other day for the 4th quarter 2009. Expectations in the market are high right now as the 1st quarter 2010 may not be quite rosy for the investors due to the intense power crisis in the country and high interest rates.
The stocks to look out for seem to be the oil refineries (PRL, ATRL, NRL) and oil marketing companies (PSO, SHELL) with banks having an average quarter due to reports of the Non Performing Loans (NPL) keeping on increasing. Insurance companies and investment companies are also having a very tough time and what to say of the textile sector.
Government of Pakistan is to announce the Textile Policy in the coming days and there are expectations of a turnaround in the sector in the next 1 or 2 years provided the power crisis and law and order situation in the country come under control.
The Government has already announced that 2009-2010 would be the year of the industry and with the industrial policy to be announced in the next month we may see some improvement in the industry’s share in the GDP from the disappointing -7% progress in this year.
The rally at the stock exchange may go on till the result season is over so this seems to be the best time to make some profit.