Karachi Stock Exchange Weekly Analysis 31 August, 2012


The Karachi Stock Exchange (KSE) market has witnessed a bullish trend. KSE – 100 index has reached 15,392 points by gaining 352 points or 2.3 percent. While the KSE 30-share index has gain 369.88 points, or 2.88 percent and reached on 13,229.93.

Average daily volumes declined by 6.9%WoW to 250 million shares. Foreigners were net buyers of US$ 7.7 million during the week. On the macro front, CPI for August clocked in at 9.05%YoY.

Following news have played vital role in Karachi Stock Market index movement:


  • Supreme Court has provided time to PM form contempt of court case, Investors are cautious about the decision
  • Unveiling of the new petroleum policy 2012, which bodes well for the exploration sector and healthy payouts in E&P sector, has encouraged investors
  • New Oil and Gas prices have been implemented in country with the hike of almost 5%
  • The ministry of Petroleum and Natural Resource has finally unveiled the much awaited petroleum policy, however with less glitter than earlier anticipated
  • GoP enhances wellhead gas prices for E&P companies: GoP announced increase in consumer gas price by up to 100 % in one year. The enhanced wellhead gas price for E&P companies from existing $4/ mmbtu to $6‐$9/ mmbtu
  • After the completion of Zamazama gas field's ATA, a total of 190 MMCFD gas has been added into the SNGPL system of which 80 MMCFD is diverted to power sector
  • SBP(State Bank of Pakistan) made a repayment of US$ 397.2 million to the IMF) on Friday
  • In response to the recent cut in discount rate by SBP, Profits in NSS (National Saving Schemes) have been decreased. According to the Notification new rates for SSC, Regular Income Certificate, DSC and Savings Accounts has been fixed at 10.8%, 11.04%, 11.5% and 7.40%, respectively
  • SBP turned down MCB’s request for banking operations in India
  • Pakistan and India, during the deliberations, will also touch issues of LNG pricing and transport facility. India was planning to expand its pipeline network for shipment of LNG across the border. India has agreed in principle to provide 200mmcfd LNG to Pakistan through Wagah border for a period of 5 to 7 years
  • PSO is facing turbulent situation as its receivables have once again rose to the alarming level of PKR 46 billionn as on August 28, 2012
  • PTCL was the poster boy of the week, accounting for 11% of total volumes and pushed forward by 18% WoW over reports that PTA was in the process of establishing International Clearing House (ICH) and raising ASR for LDI operators despite CCP voicing reservations in this regard 
  • This week’s volume leaders were PTC (cumulative 133mn shares), TELE and WTL – indicating the quantum of interest in the Telecom sector on the proposed ICH implementation
  • Pakistan’s public debt has increased by 105% since 2008 to touch PKR 12.392 trillion at the end of June 30 2012, exceeding a limit imposed by the parliament that it should not at any stage go beyond 60% of overall size of the economy
  • Refinery sales increased 6% to 697,000 tons in July 2012 although volatility in international oil prices continued to induce volatility in domestic operations
  • According to the National Fertilizer Development Centre (NFDC) urea offtake declined by 19%YoY while DAP dipped by 23%YoY in July. Moreover, govt. has reportedly issued a tender for the import of 300k tons of urea at US$399/ton CFR, which may dent local urea offtake and the pricing power of local producers in the near term 
  • With June 2012 result season still ongoing, certain big ticket names such as POL, APL, DGKC and NML still have to unveil their results


Bata (Pakistan), PACE, MDTL, ABOT, ICI, SIEM, SHFA, Atlas Honda, P.T.C.L., Nishat Chunian, ENGRO, NIB Bank Ltd., National Refinery Ltd., EFOODS, HUBCO, MCB, NBP, Pakistan Tobacco, Ghani Glass Ltd., Pak Services, MARI Gas, Dawood Hercules, Pak Cables and Media Times Limited were the major gainers while Jahangir Siddiqui & Co, KESC, Meezan Bank, EFU Life Insurance, IGI Insurance, Bestway Cement, Colgate Palmolive, Indus Dyeing, Soneri Bank, GLAXO, BAFL, UBL, FABL, TRIPF, LOTPTA, FATIMA and MEBL were major losers in the benchmark KSE-100 this week.

Top volume leaders of last week were: PTC, TELE, WTL, FCCL, and JSCL.

Our top picks at the moment include PPL, APL, PSO, OGDC, POL, Hubco and NCPL in the energy sector. Among banks MCB is our preferred play while Lucky Cement also deserves a closer look given favorable operating dynamics and upside potential. Among textiles, NML attracts our bias given its vertically integrated operations while we retain Fatima as our preferred exposure in the troubled fertilizer sector.

Thank you very much for reading this article.

NOTE: The information posted in this blog (forum) is based on current affairs & investors point of view. There may be discrepancy in the ground realities.

Written by: Rana Khurram

Companies Results Aug 2012

Lotte Pakistan Ltd (LOTPTA)
Profit/Loss (million): (445.523)
EPS: (0.19)
Bonus/Dividend: NIL

Lafarge Pakistan Cement Ltd (LPCL)
Profit/Loss (million): 334.82
EPS: 0.39
Bonus/Dividend: NIL

BAIFO Industries
Profit/Loss (million): 47.80
EPS: 8.33
Bonus/Dividend: 35%

New Jublee Life Insurance (JLICL)
Profit/Loss (million): 126.308
EPS: 3.88
Bonus/Dividend: NIL

Askari Commercial Bank Ltd (AKBL)
Profit/Loss (million): 524.635
EPS: 1.43
Bonus/Dividend: NIL

JS Growth Fund (JSGF)
Profit/Loss (million): 136.742
EPS: 1.56
Bonus/Dividend: 11.50%

KASB Bank
Profit/Loss (million): 447.037
EPS: 0.10
Bonus/Dividend: NIL

EFU Life Assurance (EFUL)
Profit/Loss (million): 117.299
EPS: 5.25
Bonus/Dividend: 15%

Fatima Fertilizer Company (FATIMA)
Profit/Loss (million): 2156.153
EPS: 1.30
Bonus/Dividend: NIL

JS Investments Ltd (JSIL)
Profit/Loss (million): 54.994
EPS: 1.33
Bonus/Dividend: NIL

EFU General INS (EFUG)
Profit/Loss (million): 236.879
EPS: 6.69
Bonus/Dividend: 10%

IGI Insurance Ltd (IGIIL)
Profit/Loss (million): (206.444)
EPS: 0.51
Bonus/Dividend: 20%

Atlas Battery Ltd (ATBA)
Profit/Loss (million): 149.200
EPS: 40.23
Bonus/Dividend: 100%, 20%B

Charat Cement Company Ltd (CHCC)
Profit/Loss (million): 243.729
EPS: 4.57
Bonus/Dividend: 20%

Pak Suzuki Motor Company Ltd
Profit/Loss (million): 780.515
EPS: 16.63
Bonus/Dividend: NIL

Millat Tractors Ltd
Profit/Loss (million): 779.278
EPS: 54.03
Bonus/Dividend: 400%

Allied Bank Ltd
Profit/Loss (million): 3608.476
EPS: 7.03
Bonus/Dividend: 15%

Karachi Stock Exchange Weekly Analysis 25 August, 2012


The Karachi Stock Exchange (KSE) market started the post-Eid week on positive note, after SBP’s decision of cut down the discount rate by 150 bps. The short week after Eid holiday finished with a flattish trend. KSE – 100 index has reached 15,039.18 points by gaining 39.18 points or 0.26 percent. While the KSE 30-share index has lost 17.87 points, or 0.14 percent and reached on 12,860.05.

Please note that KSE – 100 index has reached a highest level of since 53 months.

Volumes were impressive during the week, as average daily volumes stood at 269 million shares traded per day, up 73% over the previous week. However, most of the increased activity was witnessed in the second-tier stocks as average daily volume rose only 12% to Rs5.23 billion shares traded per day.

The market was supported further by renewed foreign interest, higher local petroleum, oil and lubricant prices and hopes for revival of gas supply to fertilizer units.

Following news have played vital role in Karachi Stock Market index movement:


  • Government has allowed trading in Indian stocks as well. According to experts, it will create positive impact and beneficial for local market and investors
  • In the next week market direction will be set with respect to the Supreme Court’s deadline for the PM to write to Swiss authorities in connection with graft allegations against the President
  • State Bank of Pakistan has announced its next monetary policy. In which they have proposed 1.5% cut of interest rate and lead it to 10.5 basis points
  • The cut down of discount rate have made a significant positive impact in market’s movement
  • Telecom sector should remain in the limelight particularly if official notification arrives pertaining to ICH implementation
  • SBP declared the current account deficit of US$ 297 million while IMF principle payment of approximately US$ 397 million is likely to be made by GoP on Friday
  • ECC has approved reduction in duties on LPG equipment up to 10% to promote LNG as an alternative fuel to natural gas in the country
  • Government has allowed Exploration and Production (E&P) companies, operating in the local oil and gas sector, to have contracts with gas transmission/distribution companies and third parties for sale of their share of gas in Pakistan at negotiated prices in accordance with applicable rules and regulations
  • Petrol is increased by Rs 3 and 21 paisa per litre, High Octane PKR4 and 85 paisa per litre, Kerosene oil PKR3 and 52 paisa per litre and price of light diesel has been increased by PKR3 and 19 paisa per litre
  • Banks’ NPLs are extremely high and continuously rising in Pakistan. NPLs in Pakistan and Kazakhstan are increasing, while NPLs in the 2011 were 15.4% of the gross loans of Pakistan
  • The newly‐appointed chairman of the FBR, Ali Arshad Hakeem, hinted that the tax machinery is considering lowering tax rates to lessen the taxation burden on individuals
  • Fertilizer companies have heaved a sigh of relief on a GoP decision to ensure dedicated gas supply to fertilizer plants on SNGPL network by allowing them to buy the fuel directly from the gas producers
  • Engro gained 8.1% during the week as a result of these developments
  • The government has planned to increase crude oil production to 69,000 barrels per day during current financial year 2012‐13 in order to meet the growing energy demands of the country, a petroleum ministry official said
  • Total public debt of the country has touched its peak of 60% of the GDP under Fiscal Responsibility and Debt Limitation (FR&DL) Act, by June 30, 2012. Interest payments witnessed an increase of PKR 45 billion against the budgeted figures and total debt repayment and interest payments shot up to PKR 889 billion
  • Analysts said that the rupee depreciation and continuous decline in forex reserves due to Stand-by Arrangement installment payment to the International Monetary Fund had a negative impact on investor sentiment resulting in marginal gains 


PACE, TRG, KESC, Bata, Dawood Hercules, Silk Bank, PIAC, NIB Bank, ENGRO, PTC, HCAR, FFBL, FATIMA were the top gainers of the week. While Rafhan Maize Product, Pakistan Cables, Soneri Bank, Grays of Cambridge, Nestle Pakistan, Security Paper Limited, Philip Morris Pak, Pak.Int.Cont., PSO, BAFL, SHEL, ULEVER and FFC were the top losers of this week.

Top 10 volume leaders were: FCCL, KAPCO, PKGS, DAWH, JDWS, PACE, TRG, ENGRO, AKBL, and MARI.

LPCL (78.33 million shares), FCCL (47.05 million shares), KESC (39.22 million shares), PACE (33.03 million shares) and FLYNG (32.02 million shares) led volumes during the week.

While we now believe valuations for the broader Cement sector are stretched, we see value in selected scrips. At current levels, we also prefer NML and NCL from within the Textile space.

Thank you very much for reading this article.

NOTE: The information posted in this blog (forum) is based on current affairs & investors point of view. There may be discrepancy in the ground realities.

Written by: Rana Khurram

Karachi Stock Exchange Weekly Analysis 18 August, 2012


The Karachi Stock Exchange (KSE) market performance was bullish after SBP’s decision of cut down the discount rate by 150 bps. KSE – 100 index has crossed the psychological level of 15,000 points since after April 30, 2008. KSE – 100 index has reached 15,000 points by gaining 238.51 points or 1.6 percent. While the KSE 30-share index rose by 191.40 points, or 1.50 percent, in the same week and ended at 12,877.92 points.

According to analysts the KSE would maintain the upward drive next week too because the market is yet to fully absorb the aggressive rate cut by the State Bank of Pakistan.

The average daily turnover increased by 158 percent to 155 million shares in the outgoing week from 60 million shares traded in the previous week. Market capitalisation rose by Rs60 billion to Rs3,827 billion. Foreigners were net buyers of $35.6 million during the week (inflated by one-off $30 million off-market transaction).

Macro indicators showed a mixed trend as trade deficit (increase by 4.77%YoY) and foreign direct investment (down by 50%YoY) portrayed a weak picture, while remittances (up by 9.9%YoY) remained among the few bright spots on the macro landscape.

Local participants turned cautious ahead of holidays. The stocks likely to feel the heat of visible threats in economy as reflected in the earnings and payouts either continued to face renewed selling mainly as a part of sector and stock swapping strategy, or failed to invite fresh buying.

Following news have played vital role in Karachi Stock Market index movement:


  • State Bank of Pakistan has announced its next monetary policy. In which they have proposed 1.5% cut of interest rate and lead it to 10.5 basis points
  • The cut down of discount rate have made a significant positive impact in market’s movement
  • Strong valuations in the earnings announcements session and the renewed foreign interest in oil sector has also played a catalyst role in the bullish sentiment
  • Investors also took positions in leveraged stocks cement, fertilizer and textile sectors on expectations of strong earnings outlook on discount rate cut 
  • Strong earnings announcement by Pakistan Petroleum Ltd and hopes for fall in consumer price index inflation for August also played a catalyst role in the bullish sentiment 
  • In the 1st PIB auction after the discount rate cut, cut-off yields decreased by up to 137bps taking their cue from the SBP’s 150bps rate cut to 10.5%. Cut off rates for 3, 5 and 10 year PIB are now at 11.30%, 11.70% and 12.05% respectively
  • The government has decided to transfer the function of domestic oil price determination to oil marketing companies effective 1st September. Currently, Oil & Gas Regulatory Authority (OGRA) sets local prices in consultation with the government, Now Marketing firms have to fix the oil prices
  • Result season is on its peak, several blue chip results are still pending which are expected to keep the excitement high
  • We underline that the resumption of NRO case hearings where the prime minister is scheduled to appear before the bench on August 27 warrants attention 
  • Nepra issued a notification, allowing KESC to raise its tariff by PKR1.66/unit. The price increase was made to compensate for fuel adjustment charges 
  • The first month of the current financial year proved shocking for car assemblers owing to 39.4 % drop in their sales
  • Serving over 5 million consumers nationwide every day, Engro Foods has excelled in the local dairy industry with a compound annual growth rate (CAGR) of 65% in past 7 years and has chalked out plan infrastructure investment in 2012 to the tune of PKR 8 billion
  • Acute energy crisis, poor law and order situation and low domestic demand has enormously slowed Pakistan’s large‐scale manufacturing (LSM) growth as it grew by only 1.17% during July‐June 2011‐12
  • Government may allocate dormant gas fields to fertiliser industry
  • The government is planning to withdraw all duties and taxes on import of liquefied petroleum gas (LPG) cylinders, kits and related equipment to encourage the setting up of LPG stations in the country and discourage demand for compressed natural gas (CNG) in the face of natural gas shortage
  • Pakistan has decided to carefully examine the impact of sanctions against Iran before the sale of a million tons of wheat (initial deal is only for 100,000 tons) under barter trade deal at US$ 300 per ton


K.E.S.C., Colgate Palmolive, Media Times Limited, Lafarge Pakistan Cement Ltd, Fauji Cement Company Ltd., Pak Petroleum Ltd., Hub Power Company Limited, Pakistan Telecommunication, Pakistan Oilfields Ltd., Nishat Mills Ltd., DGKC, Engro Polymer, Askari Bank Ltd., Kot Addu Power Bata (Pakistan) and International Steel Limited were the major gainers.

While Soneri Bank, United Bank Limited, Shell Pakistan, Tri-Pack Films, Security Paper Ltd., Dawood Hercules, Faysal Bank, Pakistan Cables, Standard Chartered Bank, Allied Bank and Dawood Corporation were major losers in the benchmark KSE-100 this week.

Top 10 volume leaders of last week were: FCCL, KESC, DAWH, JDWS, BAFL, AKBL, KAPCO, NML, LUCK and PTC.

Top average daily turnover for week: FCCL, KESC, LPCL, DGKC, and JSCL

Thank you very much for reading this article, we wish all our readers Happy Eid Greetings.

NOTE: The information posted in this blog (forum) is based on current affairs & investors point of view. There may be discrepancy in the ground realities.

Written by: Rana Khurram

Companies Results Aug 15, 2012

Karachi Electric Supply Company (KESC)
Profit/loss(million): 7441.403
EPS: 0.12
Bonus/Dividend: NIL

SAMBA Bank Ltd (SBL)
Profit/loss(million): 43.567
EPS: .04
Bonus/Dividend: NIL

Indus Motor (INDU)
Profit/loss(million): 1407.726
EPS: 54.74
Bonus/Dividend: 240%

Oil & Gas Development Corp. (OGDC)
Profit/loss(million): 27654.916
EPS: 22.53
Bonus/Dividend: 27.50%

Pakistan State Oil (PSO)
Profit/loss(million): 82.329
EPS: 52.80
Bonus/Dividend: 25%, 20%B

Linde Pakistan Ltd (LINDE)
Profit/loss(million): 58.660
EPS: 5.85
Bonus/Dividend: 20%

Habib Bank Ltd (HBL)
Profit/loss(million): 5346.133
EPS: 9.06
Bonus/Dividend: 35%

Pakistan Petroleum Ltd (PPL)
Profit/loss(million): 8638.335
EPS: 31.12
Bonus/Dividend: 65%, 25%B

Meezan Bank (MEBL)
Profit/loss(million): 941.365
EPS: 2.04
Bonus/Dividend: 15%

Bata Pakistan (BATA)
Profit/loss(million): 300.370
EPS: 62.53
Bonus/Dividend: NIL

Unilever Pakistan Food Ltd (UPFL)
Profit/loss(million): 213.201
EPS: 65.15
Bonus/Dividend: 250%

Cherat Packaging Ltd (CPPL)

Profit/loss(million): 40.792
EPS: 4.16
Bonus/Dividend: 15%

Abbot Laboratories (ABOT)
Profit/loss(million): 547.422
EPS: 10.41
Bonus/Dividend: 30%

Lucky Cement (LUCK)

Profit/loss(million): 2092.269
EPS: 20.97
Bonus/Dividend: 60%

Karachi Stock Exchange Weekly Analysis 11 August, 2012


The Karachi Stock Exchange (KSE) market performance was lackluster and insipid. KSE – 100 index has reached 14,761 points by gaining 85 points or 0.6 percent.

Volumes however remained low at 60 million shares down 28%WoW. Foreigners were net buyers of US$ 1.7 million during the week.

Following news have played vital role in Karachi Stock Market index movement:


  • State Bank of Pakistan has announced its next monetary policy. In which they have proposed 1.5% cut of interest rate and lead it to 10.5 basis points
  • Consistently positive FPIs have also played positive role in market movement
  • Political turmoil and uncertainty has adversely affected sentiments of investors. Supreme court has issued a show cause notice to the Prime Minister on the NRO case. And PM has to be appeared in court on 27 August
  • Few nice corporate results have drive the market to positive direction. The important results announced last week which were above expectations are: PSO,  OGDC, INDU, MCB. Although HBL results were below expectations. Engro Polymer has reported net loss of PRs 0.60/share or PRs 395 million for 2Q
  • In T‐bill auction held on Aug 8th, the govt. raised PRs 323 billion against target of PRs 300 billion 
  • ECC has approved 0.3 million tons of urea and cut of Rs.150 per bag of urea has been proposed. These news have revived sentiments of urea producers i.e. FFC and ENGRO
  • According to the latest sales figures released by Pakistan Automotive Manufacturers Association (PAMA), auto sales plunged by 46%MoM (and 41%YoY) to 10,435 units in July 2012
  • CCI approved a new petroleum policy which will set wellhead gas price at US$ 6-9/mmbtu (up from US$ 3.5/mmbtu). The government is also likely to raise Qadirpur well head gas price to US$ 3.2/mmbtu from US$ 2.56/mmbtu
  • The government has also decided to revise POL prices on weekly basis
  • The US Congress has released 280 million dollars as new US assistance to support Pakistan's energy sector
  • July 2012 started on a dismal note for the cement sector as the industry posted a decline of 1.64% in its despatches compared with the despatches achieved in last year July 2011
  • PPL has allocated PKR6.4bn for its current fiscal year’s exploration capital expenditure plan, a more than 100 percent increase from last year’s PKR3.1bn as the company pursues its ambitious exploration programme


K.E.S.C., Security Paper Limited, Bestway Cement, E.F.U. Life Assurance, ABL, Shell Pakistan, PSO, Indus dyeing Manuf Co, Rafhan Maize products and Clariant Pak were the major gainers while Agritech Limited, Habib Metro Bank, Engro Polymer, P.T.C.L., UBL, SNGPL, Askari Bank, Pak Reinusrance, Ibrahim Fibres and GlaxoSmithKline were major losers in the benchmark KSE-100 this week.

Top performers of last week were: Maple Leaf Cement Factory Limited, Allied Bank Limited, Shell Pakistan Limited, Pakistan State Oil Co. Ltd., Pak Petroleum Ltd., Engro Corporation Limited, Indus Motor Company Limited, Packages Limited, Engro Foods Ltd., Lotte Pakistan PTA Ltd., Habib Bank Ltd.

Top average daily turnover for week: KESC, JSCL, MLCF, DGKC, QUICE

NOTE: The information posted in this blog (forum) is based on current affairs & investors point of view. There may be discrepancy in the ground realities.

Written by: Rana Khurram

Companies Results (August 2012)

Muslim Commerical Bank (MCB)
Profit/loss(million): 5681.496
EPS: 12.32
Bonus/Dividend: 40%

Azgard Nine Limited (ANL)
Profit/loss(million): 5364.545
EPS: 3.00
Bonus/Dividend: NIL

Bank Al-Habib Limited (BAHL)
Profit/loss(million): 1298.118
EPS: 2.48
Bonus/Dividend: NIL

Engro Polymer & Chemicals Limited (EPCL)
Profit/loss(million): (394.825)
EPS: 0.02
Bonus/Dividend: NIL

Nestle Pakistan Limited
Profit/loss(million): 1246.398
EPS: 64.19
Bonus/Dividend: NIL

Agritech Limited (AGL)
Profit/loss(million): (623.964)
EPS: (4.15)
Bonus/Dividend: NIL


Upcoming Board Meetings


EPCL (Engro Polymer & Chemicals Limted)
Aug 06, 2012 (Accounts for Apr - Jun 2012)


FIBLM (First IBL Modarba)
Aug 06, 2012 (Accounts for Jul - Dec 2011)


BAHL (Bank Al-Habib Limted)
Aug 06, 2012 (Accounts for Apr - Jun 2012)


MCB (Muslim Commercial Bank)
Aug 07, 2012 (Accounts for Apr - Jun 2012)


NESTLE Pakistan
Aug 07, 2012 (Accounts for Apr - Jun 2012)


KESC (Karachi Electric Supply Company)
Aug 07, 2012 (Annual Accounts 2012)


PPL (Pakistan Petroleum Limited)
Aug 08, 2012 (Annual Accounts 2012)


SBL (Samba Bank Limitd)
Aug 08, 2012 (Accounts for Apr - Jun 2012)


OGDC (Oil & Gas Development Corp)
Aug 09, 2012 (Accounts for Apr - Jun 2012)


PSO (Pakistan State Oil)
Aug 09, 2012 (Accounts for Apr - Jun 2012)


HBL (Habib Bank Limited)
Aug 10, 2012 (Accounts for Apr - Jun 2012)


MEBL (Meezan Bank Limited)
Aug 12, 2012 (Accounts for Apr - Jun 2012)


ABOT (Abbot Laboratories)
Aug 13, 2012 (Accounts for Mar - May 2012)


BATA Paksitan
Aug 13, 2012 (Accounts for Apr - Jun 2012)


UPFL (Unilever Paksitan Foods)
Aug 13, 2012 (Accounts for Apr - Jun 2012)


INIL (International Ind.)
Aug 15, 2012 (Annual Accounts 2012)


SHEL Pakistan
Aug 16, 2012 (Annual Accounts 2012)


SAPL (Sanofi-Aventis Pharmaceutical)
Aug 28, 2012 (Accounts for Apr - Jun 2012)

Karachi Stock Exchange Weekly Analysis 4 August, 2012


The Karachi Stock Exchange (KSE) market has witnessed positive movement and activities. KSE – 100 index has reached 14,676 points by gaining 150 points or 1.0 percent.

Increase in market activity can be vindicated by 47.6 %WoW rise in volumes to 83mn shares. Foreign interest was intact as foreigners were net buyers of US$ 3.0 million.

Following news have played vital role in Karachi Stock Market index movement:


  • Lucky Cement’s successful bid for acquisition of ICI Pakistan. Lucky Cement & Tabba group acquired ICI Pakistan at US$ 152.5 million
  • Signing of MoU between Pakistan and US on NATO supplies and subsequent release of US$ 1.12 billion under CSF
  • Following receipt of coalition support funds worth US$ 1.118 billion on 2nd Aug as confirmed by the SBP spokesperson, FX reserves have increased to US$ 15.69 billion
  • Inflation for the month of Jul, 2012 arrived at 9.6%, which was below market consensus and lowest in 31 months
  • The State Bank of Pakistan is due to announce its next monetary policy review for Aug‐Sep 2012 on Aug 10th
  • OGRA hiked POL, CNG prices. price of petrol was raised by PRs 7.67/litre to PRs93.79, high speed diesel by PRs 4.58 to PRs101.79/litre, kerosene by PRs 4.64/litre to PRs92.83/litre and HOBC by PRs7.64/litre to PRs120.16
  • July provisional tax collection stood at PRs 111 billion
  • We also flag political noise would grow louder as the apex court, late on Friday, struck down the controversial Contempt of Court Bill which should add a new layer of uncertainty in the govt‐judiciary tussle
  • Nice results from PPL (on 8th Aug) and other companies are expected on upcoming days
  • Pulses import hits US$ 433.436 million mark in fiscal year 2012
  • Moody's announcement to downgrade Pakistan's foreign and local currency bond ratings to the lowest level since June 1999 and negative outlook has further deepened investors' concerns about the country's already fragile economy, leading economists here believe
  • The cement export from the country recorded at USD498.909mn during the period under review as against the corresponding period of last year’s export of US$ 457.448 million
  • PSO and KPC finalised oil infrastructure joint venture project at a cost of US$ 350 million at Hub to enhance oil storage in the country
  • Local industry appeals for ban on car imports
  • PSO plans to acquire stake in UAE-based refinery


Siemens Engineering, Bestway Cement, Security Paper Limited, Colgate Palmolive, ABBOT, THALL, MUREB, Shifa Int. Hospitals, SNGPL, ICI, Media Times, GLAXO, KESC, DGKC, PCAL, NIB and Unilever Pakistan Ltd. were the major gainers. While Engro Corporation, P.I.A.C. (A), GHGL, JSCL, PSMC, Pak Services, Lotte Pakistan PTA, KESC, PACE, FFBL, MDTL, EPCL, TRIPF, GRAYS, Dawood Corporation, BYCO Petroleum and PMPK were major losers in the benchmark KSE-100 this week.

Top five average daily turnover for the week: DGKC, MLCF, BAFL, FCCL, and JSCL.

Top 10 volume leaders for the week: DAWH, BAFL, FATIMA, JGICL, AHCL, LUCK, NBP, EPCL, FFBL, and HUBC.

We see a window of opportunity in the market and recommend investors to build positions in names such as PPL, APL, PSO, OGDC, POL, Hubco and NCPL in the energy sector. Among banks MCB is our preferred play while Fatima Fertilizer and Lucky Cement also warrant a closer look given favorable operating dynamics and upside potential.

NOTE: The information posted in this blog (forum) is based on current affairs & investors point of view. There may be discrepancy in the ground realities.

Written by: Rana Khurram