Karachi Stock Exchange Weekly Analysis 27 April, 2013


The Karachi Stock Exchange (KSE) benchmark movement was bullish. As corporate results were in full flow and a choppy political arena along with deteriorating law and order failed to dent the upswing. KSE – 100 index closed at 18,917.71 points by gaining 268.50 points or 1.5 percent. While KSE – 30 index closed at 1 4,584.18 points. The Karachi Stock Exchange is likely to witness upward trend next week on the back of announcement of better-than-expected results, Unless there is any unwelcome situation such as delay in elections.

Volumes improved by 15 percent on week-on-week basis to 189 million shares against 164 million shares last week. Foreign portfolio investment was recorded at $5.9 million during the week.

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


  • The attack on few political parties by extremist disrupted the business activity for two days
  • In the outgoing week, result of cement companies provided the required boost to the investor sentiment. Result of FECTO, MLCF and PIOC were well received by investors
  • The cement industry anticipates an increase 50‐kg bag following a hike in transportation costs of cement and coal
  • Number of big ticket banks including MCB, NBP along with FFC and LUCK are scheduled to declare their quarterly results early next week
  • Foreign exchange reserve improved to USD11.94bn backed by possible inflow received from Unilever international
  • Pak rupee continued to remain volatile and touched a three figure mark on the back of economic concerns
  • The prices of steel bar made from ship plates have surged to PKR 68,000/ ton in the domestic market after an increase of PKR 4,000/ ton
  • HBL, Pakistan’s largest bank, recently signed an agreement with Daewoo Pakistan Express Bus Service Ltd., the largest foreign investment company with an advanced and organized transport system in Pakistan, to provide state‐of‐the‐art electronic cash management solutions 
  • NEPRA is all set to increase hydroelectric power rates by PKR1.18 / unit for FY13‐14 and PKR2.20/ unit under the monthly fuel adjustment formula
  • SSGC has requested the OGRA, the regulator for the oil and gas sector, to increase the price of gas by PKR31.56/mmbtu for all categories of consumers (ie domestic, commercial and industrial) with effect from July 1 
  • SECP has filed a criminal complaint in the competent court of law against six companies and 17 individuals involved in manipulation of ANL share price and volume through means which constitute acts, practices or omissions that operated as a fraud, deceit in terms of Section 17(e)(ii) to (v) of the SEO 1969. The list of accused includes JSGCL, JSCL, Jahangir Siddiqui and Sons Ltd, Jahangir Siddiqui Securities Services Ltd, JSIL), Aziz Fidahussain Ltd
  • A downward revision in the rate of the property tax is on the cards and it would be brought at 10% instead of 25%
  • The gold imports during 9MFY13 surged by 33.49% as against the same period of last year. PBS, during the period under review, 2,942KG yellow metal worth of USD159.172mn was imported as compared to the import of 2,236KG valuing USD119.239mn during same period of last year 2011‐12
  • The National Investment Trust (NIT) reportedly paid PRs12bn worth loan taken from financial institutions (including NBP, EOBI and SLIC) for setting up Pakistan State Enterprise Fund (NIT‐SEF) in Jan‐2009 to support the market 
  • State Bank of Pakistan released data on banking spreads (difference between weighted average lending and deposit rates) for March 2013 where spreads depicted an increase of 6bps MoM to 6.24% marking the first respite during past eight months during which spreads have shrunk by 96bps from 7.14% 
  • Analysts said that results of some energy and petroleum stocks were not according to the expectations and heavy selling was witnessed in these stocks
  • Most of the companies, which announced their March quarter results this week, included Allied Bank Limited, Hub Power Company, Fatima Fertilizer Limited, Engro Fertilizer, United Bank Limited, Kot Addu Power Company, Pakistan State Oil, Oil and Gas Development Company Limited, Nishat Mills Limited, Pak Suzuki Motor Company and Lotte Chemical Limited
  • Renewed buying interest in PSO, National Bank, Pak Suzuki Motor Company and Engro Corporation was also seen
  • Above-expected first quarter result announcements by Fatima Fertilizer Ltd and Engro Fertilizer Ltd and Engro’s revelation of plans to list the fertiliser company before the end of the current year


Top ten gainers of last week were: TRG Pakistan Ltd, Pak Tobacco Co, Muree Brewery Co, Shifa International Hospitals, Kohinoor Energy, International Industries, Bata (Pak) Ltd., International Steels, Thal Ltd and Pak Suzuki Motor.

Top ten losers of last week were: Pak Reinsurance, Javedan Corporation, Ghani Glass, Pak Services, Bank Of Khyber, Meezan Bank, JS Bank, EFU General Insurance, Hum Network and Millat Tractors.

Top ten volume leaders were: TRG, FCCL, ENGRO, PTC, LOTCHEM, NIB, JSCL, DAWH, DGKC, and EFOODS.

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 21 April, 2013


The Karachi Stock Exchange (KSE) benchmark movement was volatile and bearish. Market closed in red zone, because of economic uncertainty in the country, falling foreign exchange reserves and lower-than-expected results of Pakistan Telecommunications Company Ltd (PTCL) and Attock Group of Companies. DGKC and Efoods March earnings also fell below investor’s expectation. KSE – 100 index closed at 18,631.21 points by gaining 83.07 points or 0.44 percent, while KSE – 30 index closed at 1 4,472.84 points.

The weekly turnover went down by 11.71 percent and traded 159.34 million shares compared to previous week’s 180.48 million shares. Volumes picked up 15% during the week to 164 million shares per day on average, while average daily values jumped 31% to Rs6.21 billion. Market capitalisation of the KSE dropped 1% to Rs4.55 trillion. According to analysts, results announcements, upcoming elections and change in global economic scenario will set investors’ mood.

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


  • Amid volatility in global equity markets and commodity prices the market also witnessed a volatile trading week
  • Heightened political uncertainty and weak law and order ahead of the upcoming elections weighed down on investor sentiment
  • Foreigner fund managers also remained net buyers of $8.8 million (till April 18)
  • Most of the companies announced their March quarter results this week like Attock Group, PTCL, Dera Ghazi Khan Cement (DGKC), Habib Bank Ltd and Engro Foods
  • Renewed buying interest in Oil and Gas Development Company, National bank of Pakistan and Engro Corporation was also seen
  • Over the last weekend State Bank of Pakistan announced the interim monetary policy keeping the discount rate unchanged at 9.5 percent
  • Foreign exchange reserves recently declined to $11.7 billion. In the upcoming months IMF payments of $800 million are likely to be made
  • The caretaker prime minister appointed Dr Shahid Amjad Chaudhry as finance adviser and in charge of the Ministry of Finance
  • Chairman of the Securities and Exchange Commission of Pakistan has also been removed, whereas SECP’s issues with various companies are also pending in the courts
  • Wheat procurement target fixed at 7.91mn tons
  • GoP borrowing from commercial banks reached a record high of PKR864bn between July 1, 2012 and April 5, 2013 on account of the higher fiscal deficit and a slowdown in revenue receipts
  • Current Account deficit reaches US$513mn in March
  • FFBL posted above expected net earnings of PRs0.53/sh (vs. Loss of PRs0.4/sh) for 1Q13
  • Saudi govt press agency informed that, the King had asked cement companies to import 10mn tons of cement to cover domestic shortages in the short term till new capacities come online


Top ten gainers of last week were: Muree Brewery Co, IGI Insurance, Abbot Laboratories, Feroz 1888 Mills, National Bank Of Pakistan, Agriautos Industries, Pak Suzuki Motor, Pak Services, Clariant Pakistan and Thal Ltd.

Top ten losers of last week were: Pakistan Telecommunication, Askari Bank, National Refinery, Lafarge Pakistan, Javedan Corporation, Shifa International Hospitals, Shell Pakistan, Bankislami Pakistan, Habib Bank and Sui South Gas.

Top ten volume leaders were: TRG, ENGRO, NBP, PTC, JSCL, DGKC, FCCL, LOTPTA, EFOODS, and LPCL.

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 13 April, 2013


The Karachi Stock Exchange (KSE) benchmark movement was bullish, backed by strong FPI inflow which came in at US$6.3mn, while participation proved disappointing as political uncertainty increased.. KSE – 100 index closed at 1 8,714.28 points by gaining 78.25 points or 0.42 percent, while KSE – 30 index closed at 14,596.52 points by gaining 50.33 points or 0.35 percent. The KSE-100 Index gained 0.42%WoW to close at 18,714.28 points although average daily traded volumes dropped by 33%WoW to 142mn shares. All the sectors listed at the KSE, including cement, fertiliser, oil, and textiles, are showing persistent growth.

According to experts, The Karachi Stock Exchange’s (KSE) benchmark 100-index is likely to maintain upward trend next week with the beginning of financial reporting by listed companies for the quarter ended March 31. In case, foreign favourite stocks such as OGDCL and MCB Bank invite fresh buying then the index may test the 19,000 points level during the next week. Strong sales of fertiliser and cement, foreign buying in the blue-chip stocks and optimism about healthy March quarter results helped the market maintained positive trend throughout the week.

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


  • State Bank of Pakistan has announced the monetary policy, in which they have kept the discount rate unchanged to 9.5 bps
  • Investor sentiment was initially buoyed by the onset of the results season with added cheer for selected Fertilizers on improved gas supply
  • The Supreme Court’s declaration of the appointment of the Chairman SECP as invalid 
  • A sharp US$444mn WoW decline in foreign exchange reserves provided grounds for the market to take a breather on Friday
  • Asian Development Bank released a report during the week in which it stated that Pakistan’s gross domestic product growth rate is likely to decelerate to 3.6 percent in FY13 owing to the prevailing energy crisis in the country 
  • Incoming Corporate results are also setting market directions on positive zone. Key results due next week include PTC, POL, Attock Group companies, DGKC, EFOODS and HBL
  • Fauji Foundation completed financial close of Foundation Wind Energy‐II (FWEL‐II). The project is expected to have a power generation capacity of 49.5MW, located in Gharo, Sindh 
  • The Ministry of Water & Power reportedly sought PRs40bn from the Finance Ministry on an urgent basis to deal with the alarming power situation 
  • SNGPL restored gas supply to Engro on 1 month rotation basis
  • The IMF team is expected to visit Pakistan next week
  • The market is also likely to react strongly upon the selection of an interim finance minister
  • Foreign investors bought stocks worth $6.3 million


Bata (Pakistan), Pak Services, Pakistan Tobacco Co., Pak Suzuki Motors and NetSol Technologies were the major gainers while Azgard Nine, JS Bank Limited, Pakistan Reinsurance, National Foods and Jahangir Siddiqui & Co major losers in the benchmark KSE-100 this week.

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 6 April, 2013


The Karachi Stock Exchange (KSE) benchmark movement was bullish. A flurry of news & election visibility lead the KSE-100 up 3.3% WoW. KSE – 100 index closed at 18,636.03 points by gaining 592.72 points or 3.28 percent, while KSE – 30 index closed at 14,546.19 points by gaining 387.81 points or 2.38 percent. With the result season fast approaching, trading volumes picked up with average daily traded volume increasing by 39%WoW to 210.45mn shares. Interestingly, investor participation has improved by around 39% to 210mn shares on average daily volume basis in the outgoing week.

Positive macroeconomic data along with a flurry of sector-specific news acted as a catalyst for the gains. Average daily volumes jumped 39% to 210 million shares traded per day. Average daily values skyrocketed 83% to Rs7.78 billion per day as a lot of activity centred upon blue-chips. Market capitalisation rose 3.2% to Rs4.58 trillion by the end of the week.

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


  • Strong data on urea, DAP and cement sales for March 2013, speculations ahead of upcoming State Bank of Pakistan’s policy announcement and expectations of higher LDI revenues for telecom sector played a catalyst role in prevalence of bullish sentiment at the market
  • The country will receive an inflow of USD500mn during next few months, as Unilever Overseas Holding Limited has agreed to buy‐back Unilever Pakistan's shares at a price of PKR15,000/ share recommended by the special committee of KSE
  • Analysts said Unilever buyback brought interest in other food producers like Engro Foods, National Foods and Nestle Pakistan 
  • CPI for Mar’13 clocked in at 6.57%YoY/0.41%MoM, the lowest YoY reading since Jul’09
  • Imposition of fine by CCP on ENGRO and FFC for abuse of market position and an unjustified increase in the prices of urea during Dec’10 to Dec’11 period and the subsequent decision of the two companies to appeal against the decision in court
  • Statement by Standard and Poor’s (S&P), stating that since Pakistan’s trade and capital flows are not expected to improve in the near-term, and considering the lack of alternative sources of bilateral or multilateral funding, it is imperative that Pakistan approach IMF for shoring up reserves
  • ENGRO and FFC were under the firing range after CCP imposed hefty penalty on both the companies. CCP has imposed the highest‐ever penalty of PKR8.64bn on ENGRO and the FFC for increasing urea prices to unreasonable level‐ one of the main reasons behind high food inflation in the country
  • The fiscal deficit for FY13 is expected to be in excess of 8% of GDP due to massive rise in power sector subsidies
  • SBP has been decided that rate of refinance under the EFS effective from April 1, 2013 and onward till further instructions will be 8.40%/ annum
  • Pakistan will have to repay around USD1bn of outstanding loans to the IMF in the next 3‐months and the country is likely to face balance of payments crisis during the tenure of the caretaker setup
  • Warid Telecom International of the UAE has offered to buy back all shares of Wateen Telecom at PKR4.5/share and get the latter delisted from stock exchanges
  • Government of Pakistan is likely to increase power tariff by over PKR4/unit across‐the‐board after NEPRA allowed hike in tariff to LESCO
  • FBR has extended amnesty scheme up to April 6 this year for legalizing non‐duty paid smuggled vehicles in view of the 'healthy response' at the national level
  • With the revision in domestic oil prices, the government has raised margins for OMCs on motor gasoline by 25 paisas/ litre, ie, 13% and on high‐speed diesel by 10 paisas/ litre, ie, 6%.
  • PSO has been assured PKR105bn by the MoF and MoWP to ensure 16,000 tons of FO per day instead of the 12,000 tons currently being supplied. PSO reported to the Prime Minister that it had defaulted on domestic and international payments and warned of a complete dry‐out in or around second week of May on current supply pattern of 16,000 tons per day of both HSFO and LSFO
  • SNGPL has filed a petition with the OGRA for increase in gas tariff by PKR 53.83/mmbtu in each category of consumers from July 1, 2013
  • Investors were provided a pleasant surprise early in the week as inflation numbers for the month of March were reported at 6.57%, down considerably from the nine-month average of 7.98% for the fiscal year 2012-13
  • The State bank of Pakistan is due to announce its next monetary policy on April 12 and it is widely expected that the status-quo will be maintained by the bank
  • Foreigners continued to purchase equity at the bourse and were again net buyers of $5.7 million worth of equity during the week, up from $2.2 million in the previous week
  • Cement sector sales also clocked in 3% higher on a year-on-year basis and hit a record monthly high of 3.33 million tons sold
  • March results are expected to arrive from the next week, which will have a positive impact on the market. Fauji Fertilizer Bin Qasim Limited would be the first company to announce its March-end result on April 12


Top Gainers last week were: UniLever Pakistan, National Foods, Bata (Pak) Ltd., IGI Insurance, Muree Brewery Co, Clariant Pakistan, Engro Foods Ltd, Cherat Cement, Thal Ltd and  Pak Suzuki Motor.

Top Loers last week were: Jubilee General Insurance, Hum Network, TPL Trakker Ltd, Pak Reinsurance, Pace (Pak), Nishat Chunian Power, Faysal Bank, NIB Bank, Sui North Gas Pipe and Allied Bank.

Top ten volume leaders were: FCCL, LPCL, ENGRO, PTC, DGKC, JSCL, BOP, TRG, EFOODS, and LOTPTA.

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