Karachi Stock Exchange Weekly Analysis 31 Aug, 2014

The Karachi Stock Exchange (KSE) market suffered another torrid week as the ongoing political deadlock entered its third week resulting in the benchmark KSE-100 index falling 304 points (1.1%) during the week ended August 29. Amid political instability and political situation is likely to set the direction of the market next week too. The KSE-100 index slid 304 points, or 1.1 percent, week on week to 28,568 points as against 28,872 points.

Average traded volume dropped 4.4% WoW to 119mn/day. Foreigners maintained a cautious approach until news flow of Army mediation which triggered heavy inflows, dictating growth of 45% WoW in FIPI to clock in at US$8.5mn.

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


  • With the intervention of Army Chief on behalf of the government may have provided some ray of hope to the masses. Consequently benchmark returned aggressively on Friday and added nearly 1,000 points at one point in time
  • The foreign investors seems confident as buying of USD8.3mn in the week while power boost of USD10mn was received on Friday alone
  • The political saga has overshadowed the fiscal year financial results where number of corporate announced better earnings and payouts
  • KEL announced its financial result with an earnings of PKR0.47/share along with PKR0.525/share dividend for minority shareholders, which surprised the investor community
  • It is worth mentioning results of INDU, PAEL, KAPCO, PPL and GTYR were fairly impressive
  • The news related to antidumping investigation by South Africa over import of cement has dented the performance of LUCK
  • AICL result was fairly unimpressive as selling pressure was witness in the stock
  • ECC of the Cabinet, which is scheduled to meet on will approve GoP guarantee for PIA to raise PKR1bn from Faisal Bank under the Islamic mode
  • Halal meat export has fetched foreign exchange of US USD230.2mn during FY14, showing almost 9% increase as compared to FY13
  • PM witnessed the signing ceremony of financing agreements of USD588.4mn and USD76.4mn with the WB for construction of Dasu Hydropower Project and SAGP
  • FM has released PKR2.13bn of Financial Restructuring Package to PSM for the salaries and procurement of raw material
  • PPIB has extended the date for submission of EoIs till September 29, 2014 for 6,600MW coal power projects planned to be installed in Gaddani (Balochistan) on the request of some prominent investors
  • Pakistan receives USD371.4mn under CSF
  • Foreign reserves down 3.9% during the week
  • Banking spreads fall 40bp MoM to 5.95% in Jul‐14
  • ECC may approve LNG allocation for CNG industry
  • FBR’s collection of taxes on track; no negative effect of sit‐ins
  • Hubco plans to install two 660MW coal‐fired power plants with the investment of US$1bn each at its Hub site


Top ten gainers of last week were: K‐Electric, Pak Tobacco Co, Grays Of Combridge, Muree Brewery Co Ltd, Attock Cement Ltd, Allied Rental Mod, Soneri Bank, International Steels Ltd, PICIC Growth and Atlas Honda Limited.

Top ten losers of last week were: Lucky Cement, Hum Network Ltd, Sui South Gas, Pak Suzuki Motor, Thal Limited, Century Paper, IGI Insurance, Kohat Cement, Stand.Chart.Bank and Attock Refinery Ltd.

Top ten volume leaders were: BOP, KEL, MLCF, LPCL, TRG, FCCL, AICL, PPL, FABL, JSCL, and SSGC.

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 24 Aug, 2014

The Karachi Stock Exchange (KSE) market volatile amid political unrest. Karachi Stock Exchange (KSE)-100 index lost 46 points or 0.2 percent Week on Week (WoW) to close at 28,871.75 points as compared to 28,917.75 points of the previous week. Average trading volumes plunged by 26% WoW to 124mn shares as compared to 169mn shares traded previously.

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


  • The weak sentiment was mainly attributed to the ongoing political uncertainty in the country where a leading opposition party is protesting against the government and demanding the resignation of the prime minister and holding of mid term elections with electoral reforms
  • PTI decides to quit assemblies sans KP
  • The cancellation of IMF visit to Pakistan on account of political unrest further dented the market sentiment
  • Foreigners continued with their momentum and bought shares worth USD5.9mn during the week
  • Even corporate results failed to boost market sentiment as NBP and FCCL declined by 1.7% and 5.1%, respectively this week, despite reporting respective 42% and 27% EPS growth
  • HUBC gained 4.4% WoW as it announced a higher than expected cash dividend of Rs4/share
  • The Auto sector (+3.5% WoW) was the star performer of the week as the Minister of Water and Power announced the submission of auto industry policy for approval
  • Pak rupee depreciated by 1.7% WoW against the US$ hitting 6-month low at Rs 101.73
  • Trade deficit at US$1.4bn, down 16.58%YoY
  • FDI in July 2014 amounted to US$24mn, down 80%YoY
  • July 2014 textile exports amounted to US$1.17bn, up 5% MoM
  • Reserves of SBP fall below USD9bn
  • Sit-ins will stall OGDCL privatisation
  • Exports down by 7.9% YoY in Jul‐14
  • The government raised PRs71.7bn through the sale of market treasury bills on Wednesday, which is PRs53.3bn less than the target amount of PRs125bn. A total of PRs69.6bn was invested in the 3M tenor, while the 6M and 12M tenors received PRs333.4mn and PRs1.7bn respectively 
  • After an encouraging Efert (down 0.6% WoW) result last week, its parent company Engro Corp (‐1.9% WoW) posted a significantly below expectation result, attributable to consistent problems in its Eximp business which has reported a hefty loss in 1H14
  • Lucky Cement (+2.5% WoW) received significant attention throughout the week, but failed to drive the cement sector which closed 0.59% down WoW
  • The Sind High Court passed an interim order, restraining SSGC to collect GIDC above PRs13/mmbtu for industrial consumers as well as IPPs, against the proposed PRs150/mmbtu and PRs200/mmbtu for the respective categories
  • NRL has awarded around USD242.14mn of contract of installing its different plants to a Chinese company, revealed a filing at the stock exchange
  • ECC approves sovereign guarantee for 500KV transmission line
  • Punjab government on Tuesday approved 11 development schemes of different sectors at an estimated cost of PKR6,695.57mn.The schemes were approved in the 6th meeting of Provincial Development Working Party of FY15 presided over by the PP&D Chairman,. Provincial Secretary P&D members of the Planning & Development Board, Provincial Secretaries concerned and other senior representatives 
  • JSCL plans PKR1.15bn rights issue to fund investments
  • SBP has brought reforms in its function on the demand of IMF that would be reviewed next month for the release of tranche of USD550mn


Top ten gainers of last week were: TPL Trakker Ltd, Atlas Honda Limited, IGI Insurance, Rafhan Maize Prod., Pak Services, Hub Power, Bank Al‐Falah, Cherat Cement, Kohat Cement and Nishat Power Ltd.

Top ten losers of last week were: Jubilee Gen Ins, EFU General Ins, Siemens Pak Engg., National Refinery, Jah.Sidd. Co., Sui South Gas, Grays Of Combridge, Century Paper, Kohinoor Textile and Shell Pakistan.

Top ten volume leaders were: BOP, FCCL, MLCF, LPCL, DGKC, JSCL, BAFL, AICL, PPL, PTC and TRG.

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 17 Aug, 2014

The Karachi Stock Exchange (KSE) market witnessed a downward trend during the past week on political instability. It recovers after Monday blues, but still closes in the negative. Karachi Stock Exchange (KSE)-100 index lost 462.75 points or 1.6 percent Week on Week (WoW) to close at 28,917.75 points as compared to 29,380.50 points of the previous week. Progressively rising political tensions translated into by far the highest ever single day decline of 1,310 points (4.5%) at the bourse, but the market showed resilience and recovered most of the losses to close only 1.6% lower WoW to 28,918 points. Volumes remained lackluster during the week as well with daily average volume of 100mn increasing by mere 6% WoW.

KSE-100 index lost 1.6% during the week primarily on account of political concerns. Losses of the week were primarily concentrated in beginning trading session (Monday) which was marked by a massive decline of 1309 points (-4.5%). Volumes remained lackluster during the week as well with daily average volume of 100mn increasing by mere 6% WoW. The market is expected to follow developments on the political front over the next week with uncertainty looming over the outcome of PTI/PAT protests. However, earnings of key banking stocks (BAFL, NBP) and other index heavyweight stocks like HUBC and ENGRO might bring in renewed interest.

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


  • Investors following political events this week on the PTI & PAT march overshadowed corporate result announcements for the week
  • Under key announcements, MCB’s profits came broadly in line with street estimates while EFERT’s non‐core income led to surprise the investors. However, APL disappointed the participants with lower earnings on the back of abnormal operating expenses booked in the 4QFY14, owing to the scrip to fall 2.56% on the last trading day of the week
  • Index heavy OGDC and MCB were the main drivers in dragging the index down, contributing a total of ~140 points
  • Foreigners’ interest weakened during the week, particularly after Monday’s mammoth fall, with foreign investors selling net shares worth ~USD0.21mn
  • Pakistan, Hong Kong and Indonesia set for Islamic bond issues
  • Overseas Pakistanis remit USD1.6bn in July 2014
  • Privatisation: 19 profit-making entities on active list
  • Price hike demand: Mari Gas should distribute profit first, says ministry
  • Autos: Volumes plummet 34% at the start of FY15: Cumulative volumes for autos in Jul-14 clocked in at 6,948 units, down by a massive 34% YoY. Almost all variants of the three auto assemblers witnessed negative volumetric growth during the month.
  • The National Bank of Pakistan (NBP) and Hub Power Company (HUBC) are to announce their 1H2014 and FY14 results respectively on Aug 19’14. For NBP, we expect the bank to post an EPS of PkR3.6/share in 1H2014, up 29%YoY
  • For HUBC, the company is likely to report FY14 EPS of PkR6.0, down 26%YoY on the back of higher O&M expenses
  • The government has drawn up a plan to allocate about 600mmcfd of imported LNG to seven IPPs in an effort to help generate 3,000MW of electricity at a comparatively cheaper cost. MoPNR has sent a summary to the ECC seeking approval for the same 
  • Gas fields will start closing from August 2014 and their maintenance will continue until October 2014. Only residential consumers could have gas supplies in the next two to three months while other sectors like power plants, fertilizer, industrial and CNG will come under severe strain because of the shutdown. The annual turnaround or maintenance of fields is usually carried out at the start of summer and ends before the beginning of winter  
  • Auto sales dip 43% MoM to 6,984 units
  • CCP issues NOC for merger of HSBC Pakistan and Meezan Bank
  • Cement sales in July 2014 dip by 14%YoY
  • OGDCL discover gas from Pasakhi Deep Well No 1
  • Proposed LNG terminal: government decides to build pipeline from Nawabshah to Gwadar
  • KE concerned over new sales tax on retailers
  • NBP seeks SBP approval for due diligence of Burj Bank


Top ten gainers of last week were: Jubilee Gen Ins, Int. Ind.Ltd, EFU General Ins, Pak Services, Muree Brewery Co Ltd, Packages Limited, TPL Trakker Ltd, Bank AL‐Habib, Stand.Chart.Bank and NIB Bank.

Top ten losers of last week were: Javedan Corporation, Agritech, TRG Pakistan Ltd, Askari Bank Ltd., Dawood Hercules Chem, National Refinery, Siemens Pak Engg., Sui North Gas Pipe., Maple Leaf Cem. and Netsol Technologies.

Top ten volume leaders were: LPCL, AKBL, FCCL, TRG, MLCF, BAFL, BOP, LOTCHEM, NBP, KEL, and PPL.

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 10 Aug, 2014

The Karachi Stock Exchange (KSE) market witnessed a downward trend during the past week on political instability. Karachi Stock Exchange (KSE)-100 index lost 931 points or 3.1 percent Week on Week (WoW) to close at 29,382.97 points as compared to 30,314.07 points of the previous week.

Meanwhile, average daily trading volumes dropped to 129 million shares (-25 percent WoW) as the local investors’ opted for a ‘wait and see’ approach. Post August 14, 2014 greater clearing may push investors to reacquire their investment or political storm may provide investors with a valuable opportunity to acquire stocks at a cheaper rate. According to analysts, the market might also remain vulnerable next week, as political uncertainty continues and protest demonstration in Islamabad is scheduled on Thursday, August 14. The market will keenly follow the show of power expected to be put up by Pakistan Tehrik-e-Insaf and Pakistan Awami Tehrik on August 14.

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

  • Foreign investors continued to accumulate valuable stocks at a bargain while investing nearly $16.1million
  • Foreign investor weighted heavily over the improvement pertaining to the Army operation and chances of economic recovery seem strong
  • In the outgoing week, the benchmark lost nearly 1,094 points backed by chances of political noise
  • Allied Bank Limited and United Bank Limited (UBL) posted an impressive return; nevertheless market was anticipating better return from UBL
  • Yet again Engro Foods disappointed the investors with its financial results
  • Heavy weight sectors’ like oil and gas and banks plunged by 3.4 percent and 2.8 percent WoW respectively
  • Oil and Gas Development Company (OGDC) lost 3.8 percent WoW, despite announcing a cash dividend of Rs 3 per share
  • July 2014 Consumer Price Index clocking in at 7.88 percent
  • Commencement of talks between Pakistan and International Monetary Fund in Dubai and government fetching Rs 87 billion in the T-bills auction
  • The market will be eyeing key results coming up for the oil and gas sector including Attock Group, Pakistan Petroleum Limited and cement sector. Banking results (especially mid-tier) will also keep the interest alive
  • The discovery of a gas field by Pakistan Petroleum Limited (PPL) in the Gambat block
  • Power receivables soar to PKR512.9bn in fiscal year 2014
  • Disastrous situation in power sector: Discos suffer PKR211bn loss
  • Cotton price declines to two year low
  • Nestle increased price of Milkpak by PRs10/liter
  • PSMC notified entering into an agreement with the Bank of Punjab for the sale of 50,000 units of Suzuki Ravi and Suzuki Bolan. The agreement has been signed under “Apna Rozgar Scheme” of the GoP, which was announced in the provincial budget this year 
  • CHCC is investing around PKR12bn to install a new production plant at its factory’s site in Nowshera, KPK
  • ICI has planned to spend around PKR2.85bn to improve its energy mix and expand dense soda ash production capacity earlier this week
  • Pakistan and China have signed an agreement according to which Beijing will fund 14 hydel and thermal power projects of 10,400MW in Pakistan on first priority list


Top ten gainers of last week were: Hum Network Ltd, EFU Life Assur Ltd., Askari Bank Ltd., Siemens Pak Engg., Meezan Bank, Faysal Bank, Fauji Fertilizer Co., Habib Bank Ltd, Shezan International Ltd. and Mari Petroleum

Top ten losers of last week were: TRG Pakistan Ltd, Cherat Cement, IGI Insurance, Netsol Technologies, Attock Cement Ltd, Grays Of Combridge, Century Paper, Jah.Sidd. Co., Packages Limited and P.T.C.L.A.

Top ten volume leaders were: LPCL, AKBL, FCCL, TRG, MLCF, BAFL, BOP, LOTCHEM, NBP, KEL, and PPL.

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

Results August 2014

ALLIED BANK LIMITED (ABL)
Profit/Loss (million): 3862.964
EPS: 6.20
Div/Bouns: 15%

ENGRO FOODS LIMITED (EFOODS)
Profit/Loss (million): 109.728
EPS: 0.44
Div/Bouns: NIL

OIL & GAS DEVELOPMENT CORP.LTD (OGDC)
Profit/Loss (million): 32988.056
EPS: 28.81
Div/Bouns: 30%

COLGATE PALMOLIVES (COLG)
Profit/Loss (million): 437.359
EPS: 35.31
Div/Bouns: 170%

HINOPAK MOTORS (HINO)
Profit/Loss (million): 268.480
EPS: N/A
Div/Bouns: NIL

HABIB SUGAR (HABSM)
Profit/Loss: 286.833
EPS: 4.10
Div/Bouns: NIL

FAUJI FERTILIZER BIN QASIM (FFBL)
Profit/Loss (million): 754.011
EPS: 0.86
Div/Bouns: 10%

HABIB BANK LIMITED (HBL)
Profit/Loss (million): 8064.227
EPS: 9.23
Div/Bouns: 22.5%