Karachi Stock Exchange Weekly Analysis 29 Sep, 2013

The Karachi Stock Exchange (KSE) market trend was bearish, owing to the panic on the exchange rate front. KSE – 100 index closed at 2 2,387.31 points by losing -1208.30 points or -5.12 percent. While KSE – 30 index closed at 17,048.08 points by losing -1024.33 or -5.67 percent.

Activity in the market saw a steep decline, with average daily turnover falling to 183mn shares, down 25% WoW, whereas US$ value traded fell by 27% WoW. The week saw some FIPI outflows, with a net outflow of US$14.2mn during the week.

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


  • PKR witnessed an exceedingly weak spell of late, where at one point the exchange rate had crossed PKR110/USD in the inter bank market as a result the State Bank of Pakistan (SBP) had to intervene and injected US$50-60mn into the system when PKR recovered to PKR105.75/USD 
  • On Friday the SBP issued a circular notifying an increase in minimum savings deposit rate for all commercial banks to 6.5% from 6.0% previously. As a result most banks closed the day on the lower circuit breakers 
  • Nishat Mills Limited (NML) announced slightly above expected FY13 EPS of Rs16.63, up 66%YoY with a cash DPS of Rs 4
  • Bidding process for the sale of Abu Dhabi group’s Warid Telecom is expected to begin on September 30, 2013. Etisalat and Zong (China Mobile) have emerged as potential bidders for the acquisition of Warid which has 12.5mn subscribers, translating in to a market share of 10%
  • PM announced six schemes worth PKR18bn for the people. The schemes envisage provision of interest‐free micro loans, small business loans and technical training. PM in his televised address to the nation also solicited suggestions from people onwards to make the schemes transparent and successful  
  • MoF has released PKR1.5bn to PSM for payment of salaries and procurement of raw material, it is learnt. Presently, PSM is facing a serious financial crisis and salaries of employees have not been paid for last three months 
  • Islamic banking industry grew by nearly 7% during the second quarter of the CY13


Top ten gainers of last week were: Hum Network, Javedan Corporation, Shifa International Hospitals, Grays Of Combridge, TPL Trakker Ltd, Netsol Technologies, EFU General Insurance, Ghani Glass, National Foods and Sui South Gas.

Top ten losers of last week were: PICIC Growth, Maple Leaf Cement, Bank AL‐Habib, Habib Metro Bank, ICI Pakistan, United Bank, Attock Refinery, MCB Bank, Bank Al‐Falah and International Industries.

Top ten volume leaders were: BOP, NBP, PTC, MLCF, TRG, DGKC, SSGC, FCCL, BAFL, and PACE.

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 Sep, 2013

The Karachi Stock Exchange (KSE) market trend was bullish, banks’ support KSE to close the week in the green post rate hike. The Karachi Stock Exchange benchmark-100 index continued to witness positive rally for the third consecutive week. Underpinned by foreign flows (Week: USD10mn) and renewed local institutional interest, market closed in green zone. KSE – 100 index closed at 23,595.61 points by gaining 427.57 points or 1.8 percent. While KSE – 30 index closed at 18,072.41 points by gaining 182.03 or 1.02 percent.

Underpinned by foreign flows, improving global equity markets, renewed local institutional interest, favourable banking spreads and setting up of a high-level committee to curb grey traffic propelled investors to take positions. Average trading volumes increased by two percent on week-on-week basis to 244 million shares against 239 million shares; however, value in dollar terms fell by nine percent on week-on-week basis. Foreign portfolio investment saw inflows of $6.8 million against $2 million last week.

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


  • Amidst lack of impetus and underlining negative sentiments post last week’s 50bps hike in discount rate, KSE100 index tumbled below 23K level during the week
  • Strong interest in the banking sector (on the back of an anticipated recovery in spreads/core income)
  • Greater comfort on future FIPI post the US Fed’s decision not to cut its stimulus plan, lent strong support to the market mid week
  • Drilling down to sector performance, as highlighted above banks’ shone this week, outperforming the broader market by 8.7% as SBP’s hawkish tone suggested sharper and faster than earlier eyed interest rate hikes
  • E&P stocks were under pressure as receding Syria risk delivered moderation in international oil prices while the OMC and IPP chain felt the heat due to re-accumulation of circular debt (media reports cite this has risen to Rs165bn just 2-months after the government cleared outstanding stock)
  • Cement sector performance was also tepid, despite strong earnings announcements this week by Lucky Cement (LUCK: +43% YoY FY13 EPS of Rs30.04); Kohat Cement (KOHC: +59% YoY FY13 EPS of Rs20.45) and Pioneer Cement (PIOC: +155% YoY FY13 EPS of Rs6.76). The sector underperformed the KSE-100 by 2.9% as investors lent more credence to interest rate hikes dampening sector earnings rather than the news that APCMA has apparently resolved its internal tussle on cement prices and market share 
  • On the macro front, Pak Rupee exchange rate was in the eye of the storm, as it shed 0.7% of its value vs. the US Dollar this week alone
  • External account data released by State Bank of Pakistan depicted a weak Current Account reading with August 2013 deficit sharply rising to US$575mn vs. deficit of US$57mn in July 2013
  • However, U.S Fed’s unexpected decision to delay the unwinding of monetary stimulus in U.S and consequent rally in emerging markets brought interest back in local equities
  • The re‐emergence of circular debt to tune of PKR165bn despite various measures to curb the menace
  • Industry reports suggested improved plant utilization on continued gas supply which curtailed decline for ENGRO (-3%)
  • Telecom sector (+3%) also got an thrust after PTA installed a monitoring system to curb illegal voice and data communication
  • Federal government has drafted a new co‐generation policy for sugar mills, according to which all fiscal and financial incentives that are available to IPPs will be offered to mills
  • The majority shareholders of Unilever Pakistan Limited have applied for voluntary delisting of the company through buy‐back of shares from minority shareholders, said a statement. The proposed buy‐back transaction by the company has been approved by the Listing Committee of the Lahore Stock Exchange for PKR15,000/‐ per share subject to purchase of at least 199,400 ordinary shares of the total 3,312,452 shares 
  • Owing to the delay in finalization of the draft return form for the tax year 2013, the FBR has extended the last date for filing of tax returns and statements until October 31 
  • Pakistan Refinery Limited (PRL) will double its MS production from 144ktons to 270ktons
  • In the first auction after the hike in interest rate, the government raised PRs506bn through T-bills on against the target of PRs250bn
  • Foreign exchange reserves stand almost flat from previous week at US$10.374bn as of 12th September
  • CA deficit for 2MFY14 clocked in at US$632mn after a sizable deficit of US$ 575 million in Aug 2013
  • Government of Pakistan plans to slash PSDP expenditure by 28% to PkR 834 billion
  • The MoPnR has proposed to stop gas supply to CNG stations, captive power plants and fertilizer industry in the winter months
  • There are expectations of upcoming energy reforms including the second phase of power tariff hikes in Oct’13 and a possible announcement of SOE privatizations to drive sentiments
  • Going forward, a few more key results such as Maple Leaf Cement and Nishat Mills are in the pipeline and the week will also see futures positions to rollover to October contract


Top ten gainers of last week were: Pace (Pak), Jah.Sidd. Co., GlaxoSmithKline Pak., Shifa International Hospitals, Attock Cement, Pak Tobacco Co, Engro Foods Ltd, Bata (Pak) Ltd., Maple Leaf Cement and Bank Of Khyber.

Top ten losers of last week were: Colgate Palmolive, Hub Power Company, Javedan Corporation, Arif Habib Corp, Hum Network, Pak Services, Habib Bank, United Bank, Engro Corporation and Fauji Fert Bin.

Top ten volume leaders were: BOP, MLCF, FCCL, DGKC, BAFL, NBP, PTC, TRG, NIB and HMB.

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 Sep 17 Update

PAKISTAN PAPER PRODUCTS(PPP)
Profit/Loss (million): 10.680
EPS: 6.47
Bouns/Dividend: NIL

GHANI AUTOMOBILE INDUSTRIES LTD(GAIL)
Profit/Loss (million): (0.800)
EPS: (0.53)
Bouns/Dividend: NIL

Ghani Value Glass Ltd. (CHAUDHRY TEXTILE)(GVGL)
Profit/Loss (million): 6.028
EPS: 3.41
Bouns/Dividend: 5%

LUCKY CEMENT(LUCK)
Profit/Loss (million): 2732.561
EPS: 30.04
Bouns/Dividend: 80%

THAL LIMITED(THALL)
Profit/Loss (million): 513.724
EPS: 20.05
Bouns/Dividend: 150.00%

CLOVER PAKISTAN LTD(CLOV)
Profit/Loss (million): 74.725
EPS: 6.67
Bouns/Dividend: 60%

STANDARD CHARTERED MOD.(SCM)
Profit/Loss (million): 40.392
EPS: 2.67
Bouns/Dividend: 20%

BALUCHISTAN WHEELS(BWHL)
Profit/Loss (million): 21.734
EPS: 4.19
Bouns/Dividend: 15%

TATA TEX(TATM)
Profit/Loss (million): 109.321
EPS: 18.96
Bouns/Dividend: 20%

SALFI TEX(SALT)
Profit/Loss (million): 126.533
EPS: 107.67
Bouns/Dividend: 20%

ISLAND TEX(ILTM)
Profit/Loss (million): 158.800
EPS: 734.72
Bouns/Dividend: 50%

TPL TRAKKER(TPL)
Profit/Loss (million): 19.733
EPS: 0.20
Bouns/Dividend: NIL

THATTA CEMENT COMPANY LIMITED(THCCL)
Profit/Loss (million): 66.810
EPS: 1.49
Bouns/Dividend: 5%

STANDARD CHARTERED LEASING LTD(SCLL)
Profit/Loss (million): 26.415
EPS: 1.09
Bouns/Dividend: 8%

SHIFA INT. HOSPITAL(SHFA)
Profit/Loss (million): 170.232
EPS: 7.68
Bouns/Dividend: 30%

Karachi Stock Exchange Weekly Analysis 15 Sep, 2013

The Karachi Stock Exchange (KSE) market trend was bullish, where a broad consensus of status quo on MPS and disbursements by the IMF largely dictated sentiments, KSE – 100 index closed at 2 3,168.04 points by gaining 402.17 points or 1.77 percent, While KSE-30 index reached on 17,890.38 by gaining 185.49 points or 1.05 percent. Average daily traded volumes during the week were 23%WoW higher at 238.95 million shares.

The market was reacting to poor law and order situation, rupee devaluation, and uncertainty in Middle East over Syria issue. But this week turned out to be a positive one for the Karachi course as smooth progression of democracy induced a wave of optimism coupled by governance decisions made by the incumbent government over terrorism and privatization drive.

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


  • In the much awaited monetary policy for next two month, SBP increased DR by 50bps to 9.5% against divergent street estimates. This development bodes well for banking sector, as pressure on spreads should ease, which is likely to allure investors
  • Cement stocks were once again the talk of town and attracted investor’s attention. Rumors regarding a breakdown of the price mechanism of cement makers triggered a panic in the market, however later developments regarding LUCK’s participation in the APCMA meeting and a possible delay in DGKC’s expansion plans gave a ray of fresh hope to the sector 
  • With a 50bps cut in DR announced and an increased clarity on the fate of the cement makers pricing arrangement, the market is likely to take a clear direction in the upcoming week
  • IMF’s Mission Chief for Pakistan Jeffrey Franks says that the IMF has anticipated that Pakistan’s economy would grow to the vicinity of 5 per cent by the end of just‐approved economic programme in the 15‐16
  • The Ministry of Petroleum and Natural Resources is planning to increase the prices of CNG equivalent to 75 to 80% of the petrol prices, MD SSGC
  • JICS has finalized a deal to supply some 71,000 tons of urea worth US$ 21 million to Pakistan under Japan non‐project grant
  • MoF confirmed receipt of the first tranche of US$540mn from the IMF
  • Government of Pakistan dispelled speculations regarding any plans to adjust the rupee dollar parity
  • An internal meeting of the Privatization Commission was set for next week to finalize the plan for sale of 30 SOEs under the first phase of privatization while a divestment of 26% of the government’s stake in PIAA was authorized 
  • Fears of a US attack in Syria eased as the vote in US Congress was delayed
  • Earlier in the week market bid farewell to Mr. Zardari and staged a welcome to Mr. Mamnoon Hussain
  • Daily avg turnover jumped to 239mn shares, up 23% WoW, whereas US$ value traded increased by 25% WoW. A FIPI outflow US$5.6mn was witnessed during last 2 sessions however on net basis the week rounded off with US$2mn inflow
  • Foreign investment in the last two sessions witnessed an outflow of $5.6 million, on net-basis at the end of the week foreign investment was positive (net inflow) of $2 million
  • International inflows for Pakistan jumped exponentially post re-entry to the International Monetary Fund (IMF) programme of $6.64 billion coupled with Asian Development Bank and Islamic Development Bank committing $245 million and $850 million respectively
  • The energy sector was in the limelight throughout the week as tensions eased over a potential military strike by the United States and diplomatic options become the focus
  • Pakistan Petroleum seeks to benefit from a 40 million cubic feet per day (mmcfd) addition to the system from Latif gas field and Oil and Gas Development Company aims to add 350mmcfd in the next 18 months
  • Moreover, an expected increase in cement bag prices renewed buying interest in cement stocks. Going forward, key results from cement makers, such as Lucky Cement and Kohat Cement will drive investors’ actions next week


Top ten gainers of last week were: Pace (Pak), Jah.Sidd. Co., GlaxoSmithKline Pak., Shifa International Hospitals, Attock Cement, Pak Tobacco Co, Engro Foods Ltd, Bata (Pak) Ltd., Maple Leaf Cement and Bank Of Khyber.

Top ten losers of last week were: Colgate Palmolive, Hub Power Company, Javedan Corporation, Arif Habib Corp, Hum Network, Pak Services, Habib Bank, United Bank, Engro Corporation and Fauji Fert Bin.

Top ten volume leaders were: FCCL, BOP, MLCF, DGKC, JSCL, PTC, ENGRO, NBP, TRG, 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 15 Sep, 2013

The Karachi Stock Exchange (KSE) market trend was bullish, where a broad consensus of status quo on MPS and disbursements by the IMF largely dictated sentiments, KSE – 100 index closed at 2 3,168.04 points by gaining 402.17 points or 1.77 percent, While KSE-30 index reached on 17,890.38 by gaining 185.49 points or 1.05 percent. Average daily traded volumes during the week were 23%WoW higher at 238.95 million shares.

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


  • In the much awaited monetary policy for next two month, SBP increased DR by 50bps to 9.5% against divergent street estimates
  • Cement stocks were once again the talk of town and attracted investor’s attention. Rumors regarding a breakdown of the price mechanism of cement makers triggered a panic in the market, however later developments regarding LUCK’s participation in the APCMA meeting and a possible delay in DGKC’s expansion plans gave a ray of fresh hope to the sector 
  • With a 50bps cut in DR announced and an increased clarity on the fate of the cement makers pricing arrangement, the market is likely to take a clear direction in the upcoming week
  • IMF’s Mission Chief for Pakistan Jeffrey Franks says that the IMF has anticipated that Pakistan’s economy would grow to the vicinity of 5 per cent by the end of just‐approved economic programme in the 15‐16
  • The Ministry of Petroleum and Natural Resources is planning to increase the prices of CNG equivalent to 75 to 80% of the petrol prices, MD SSGC
  • JICS has finalized a deal to supply some 71,000 tons of urea worth US$ 21 million to Pakistan under Japan non‐project grant
  • MoF confirmed receipt of the first tranche of US$540mn from the IMF
  • Government of Pakistan dispelled speculations regarding any plans to adjust the rupee dollar parity
  • An internal meeting of the Privatization Commission was set for next week to finalize the plan for sale of 30 SOEs under the first phase of privatization while a divestment of 26% of the government’s stake in PIAA was authorized 
  • Fears of a US attack in Syria eased as the vote in US Congress was delayed


Top ten gainers of last week were: Pace (Pak), Jah.Sidd. Co., GlaxoSmithKline Pak., Shifa International Hospitals, Attock Cement, Pak Tobacco Co, Engro Foods Ltd, Bata (Pak) Ltd., Maple Leaf Cement and Bank Of Khyber.

Top ten losers of last week were: Colgate Palmolive, Hub Power Company, Javedan Corporation, Arif Habib Corp, Hum Network, Pak Services, Habib Bank, United Bank, Engro Corporation and Fauji Fert Bin.

Top ten volume leaders were: FCCL, BOP, MLCF, DGKC, JSCL, PTC, ENGRO, NBP, TRG, 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

Companies Results Sep 10, 2013

KARACHI ELECTRIC(KESC)
Profit/Loss (million): 2329.144
EPS: 0.26
Bouns/Dividend: NIL

MARI GAS COMPANY LTD.(MARI)
Profit/Loss (million): 429.975
EPS: 26.35
Bouns/Dividend: NIL

IBL HEALTHCARE LIMITED(IBLHL)
Profit/Loss (million): 29.400
EPS: 5.03
Bouns/Dividend: 15% , 15% B

ITTEHAD CHEMICAL(ICL)
Profit/Loss (million): 75.600
EPS: 8.18
Bouns/Dividend: 10% , 38.89% B

NATIONAL FOOD LTD.(NATF)
Profit/Loss (million): 85.373
EPS: 16.25
Bouns/Dividend: 40% , 25% B

NETSOL TECHNOLOGIES LIMITED(NETSOL)
Profit/Loss (million): 443.308
EPS: 14.88
Bouns/Dividend: 10% , 10% B

IMROZ MOD.IST(FIMM)
Profit/Loss (million): 15.960
EPS: 10.92
Bouns/Dividend: 100%

PICIC INVESTMENT FUND(PIF)
Profit/Loss (million): 383.569
EPS: 3.10
Bouns/Dividend: 22%

PICIC GROWTH FUND(PGF)
Profit/Loss (million): 708.750
EPS: 6.02
Bouns/Dividend: 45%

PAKISTAN REFINERY LTD.(PRL)
Profit/Loss (million): (423.476)
EPS: 14.17
Bouns/Dividend: 28.50%

D.G.KHAN CEMENT COMPANY LTD.(DGKC)
Profit/Loss (million): 1261.777
EPS: 12.56
Bouns/Dividend: 30%

NIMIR INDUSTRIAL CHEMICAL LTD.(NICL)
Profit/Loss (million): 44.236
EPS: 0.57
Bouns/Dividend: NIL

SHEILD CORPORATION LIMITED(SCL)
Profit/Loss (million): 27.573
EPS: 9.63
Bouns/Dividend: 15.00%

GATRON INDUSTRIES(GATI)
Profit/Loss (million): 155.358
EPS: 8.34
Bouns/Dividend: 40.00%

ASIA INSURANCE(ASIC)
Profit/Loss (million): 3.353
EPS: 0.18
Bouns/Dividend: NIL

INTERNATIONAL IND.(INIL)
Profit/Loss (million): 164.252
EPS: 4.66
Bouns/Dividend: 22.50%

AGRITECH LTD(AGL)
Profit/Loss (million): (126.193)
EPS: (7.15)
Bouns/Dividend: NIL

TREET CORPORATION LTD.(TREET)
Profit/Loss (million): N/A
EPS: N/A
Bouns/Dividend: 15% R

EAST WEST LIFE INSURANCE CO. LTD.(EWLA)
Profit/Loss (million): 4.444
EPS: 0.14
Bouns/Dividend: NIL

NISHAT CHUNIAN POWER LTD(NCPL)
Profit/Loss (million): N/A
EPS: N/A
Bouns/Dividend: 20%

BANK OF PUNJAB(BOP)
Profit/Loss (million): 671.573
EPS: 1.90
Bouns/Dividend: NIL

JAHANGER SIDDIQUI & CO(JSCL)
Profit/Loss (million): 36.641
EPS: 0.17
Bouns/Dividend: NIL

AGRIAUTO INDUSTRIES(AGIL)
Profit/Loss (million): 110.592
EPS: 10.74
Bouns/Dividend: 110%

UNIVERSAL INSURANCE(UVIC)
Profit/Loss (million):(32.847)
EPS: (1.84)
Bouns/Dividend: NIL

PAKISTAN REINSURANCE(PAKRI)
Profit/Loss (million): 230.998
EPS: 1.99
Bouns/Dividend: NIL

PAK ELEKTRON LTD.(PAEL)
Profit/Loss (million): 240.689
EPS: 2.53
Bouns/Dividend: 120% R

SINGER PAKISTAN(SING)
Profit/Loss (million): 19.915
EPS: 0.59
Bouns/Dividend: NIL

SERVICE IND.(SRVI)
Profit/Loss (million): 209.023
EPS: 29.29
Bouns/Dividend: 75%

RELIANCE INSURANCE(RICL)
Profit/Loss (million): 19.286
EPS: 0.76
Bouns/Dividend: NIL

HABIB ARKADY(HAL)
Profit/Loss (million): 40.000
EPS: 3.55
Bouns/Dividend: 70%

BANK AL-HABIB LTD(BAHL)
Profit/Loss (million): 1277.286
EPS: 2.40
Bouns/Dividend: NIL

JS BANK LIMITED(JSBL)
Profit/Loss (million): 80.661
EPS: 0.16
Bouns/Dividend: NIL

DAWOOD HERCULES(DAWH)
Profit/Loss (million): (61.216)
EPS: 1.03
Bouns/Dividend: NIL

ASIAN STOCK FUND(ASFL)
Profit/Loss (million): 213.300
EPS: 4.95
Bouns/Dividend: 8.8% B

PAKISTAN INT.CONTAINER LTD(PICT)
Profit/Loss (million): 509.079
EPS: 10.48
Bouns/Dividend: 140%

SAFEWAY MUTUAL FUND LIMITED(SFWF)
Profit/Loss (million): 217.800
EPS: 8.46
Bouns/Dividend: 10% B

STANDARD CHARTERED BANK PAKISTAN LIMITED(SCBPL)
Profit/Loss (million): 3287.432
EPS: 1.21
Bouns/Dividend: 10%

HABIB INSURANCE(HICL)
Profit/Loss (million): 100.413
EPS: 1.55
Bouns/Dividend: NIL

International Steel Limited(ISL)
Profit/Loss (million): 256.650
EPS: 0.84
Bouns/Dividend: NIL

AMERICAN LIFE INSURANCE COMPANY(ALICO)
Profit/Loss (million): 26.999
EPS: 2.10
Bouns/Dividend: NIL

SECURITY INV. BANK(SIBL)
Profit/Loss (million): 1.619
EPS: 0.07
Bouns/Dividend: NIL

Karachi Stock Exchange Weekly Analysis 8 Sep, 2013

The Karachi Stock Exchange (KSE) market trend was bullish and came out of technical correction, Entry into IMF program supports market sentiment. KSE – 100 index closed at 22,766 points by gaining 605 points or 2.7 percent with average daily volumes of 194mn shares. While KSE-30 index reached on 17,485.53 by gaining 235.06 points. Key highlights remained CPI announcement, DGKC result, Supreme Court’s order to expedite 3G auction. Within cement sector, announcement of initiation of green field project at Hub by DGKC remained the highlight of the week. “Going forward, investors will eye monetary policy announcement next week,”.

According to analysts, In the present market dynamics, power stocks including HUBC and KAPCO along with LUCK can be considered as a safe bet. NCL, NML, PTC, KESC along with EFOODs are available at hefty discounts from where downside seems quite limited. Investing in cement stocks appear risky even at present discounted levels.

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


  • Approval of the new 3-year International Monetary Fund (IMF) Program equaling US$6.64bn under an Extended Fund Facility (EFF) provided much needed impetus to the market this week and the market reversed its corrective spell 
  • IMF board on Wednesday approved a USD6.7bn loan package for Pakistan to help revive its ailing economy. In a statement, the IMF said the three‐year programmed should help Pakistan rebuild its reserves and prevent a crisis in the balance of payments. IMF loans generally come with conditions for economic reform and should encourage other donors to step in with more funds
  • Few investors are anticipating that SBP may keep the discount rate unchanged in the upcoming monetary policy. On the other hand majority of the analyst community believe SBP can raise the discount rate by 50bps
  • Banks are reluctant to invest in the long‐term government securities mainly due to expected hike in the key policy rate
  • On the macro front, CPI inflation figures for the month of August 2013 were released which clocked in at 8.55% YoY, close to our 8.45% outlook and around the mid-point of consensus estimates (8.1-8.7%)
  • During the week, DG Khan Cement announced slightly below expected FY13 EPS of Rs12.56, up 34%YoY, with an in-line expected cash DPS of Rs3.0
  • Highlight of results though was DGKC’s plan to set up a 2.6mn ton cement plant in the South, announced at a time when the cement price/market share agreement is on shaky ground
  • Figures released by All Pakistan Cement Manufacturers Association (APCMA) for August show cement sales decline of 2%YoY
  • Supreme Court (SC) sets 60-day deadline for 3G license auction
  • OMV discovers oil, gas at Mehar gas field
  • The government collected about PKR595bn in different taxes on oil and gas in 2012‐13, accounting for almost 31% of total revenues collected by the FBR PKR1,936 billion
  • The market is likely to show mixed trend next week due to likely announcement of the monetary policy
  • Foreign portfolio investment saw a decline to $1.1 million from the last week’s inflows of $2.29 million
  • Forex reserves slip below $10 billion
  • Government has increased prices of petroleum products up to PRs4.50/ltr effective from September 1

Top ten gainers of last week were: Nishat Chunian, Pakistan Telecommunication, Nishat Mills, TRG Pakistan Ltd, Pakistan Cables, K.E.S.C., Dawood Hercules Corp, Rafhan Maize Prod, PICIC Growth and Fauji Fert Bin.

Top ten losers of last week were: Mari Petroleum, Siemens Pak Engg, Nestle Pakistan, Netsol Technologie, Clariant Pakistan, National Foods, J.D.W.Sugar, Kohinoor Energy, Allied Rental Mod and Attock Cement.

Top ten volume leaders were: FCCL, BOP, PTC, DGKC, JSCL, ENGRO, NBP, LPCL, NIB, 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