Karachi Stock Exchange Weekly Analysis 30 December, 2012


The Karachi Stock Exchange (KSE) index movement was bullish, amid arrival of more than $600 million under the Coalition Support Fund (CSF) from the United States along with investment in the blue-chip stocks. KSE – 100 index closed at 16,943.19 points by gaining 77.85 points or 0.46 percent, while KSE – 30 index has reached 13,795.56 points by increment of 112.34 points or 0.82 percent. Average daily turnover improved slightly to 141.07 million shares up 1.97%WoW with trading dominated in the 2nd and 3rd tier stocks. Foreign investors chose to book profits at current levels and were net sellers of US$ 5.6 million.

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


  • Pakistan today received US$ 688 million in CSF (Coalition Support Fund) dues, which should improve the BoP position and reduce pressure on the PkR (down 3.2%FYTD against the US$).
  • The week saw increase in political activity as various parties heightened their election campaigns
  • SBP rejected all bids for the fortnightly T-Bill auction, where bids were skewed towards the 3-month tenor
  • According to analysts, fertilizers may come into the limelight on expectation of strong payouts as well as robust 4QCY12 results on strong fertilizer sales
  • OGDCL announced another successful drilling in the high profile Zin Block
  • ADB (Asian Development Bank) has approved US$ 245 million to improve power distribution system
  • Third tier stocks stole the limelight as PIA with turnaround story and BYCO in anticipation of extension in tax holiday to 20 years drew investor’s interest
  • Byco Petroleum has achieved yet another historic milestone by bringing the first‐ever oil tanker of 70,000 metric tonnes to its newly established deep sea SPM facility constructed by Byco Terminal Pakistan Ltd
  • Heavily leveraged cement sector continues to draw eyeball in anticipation of buoyant offtake and prevalent low interest rate scenario
  • The weighted average banking sector spreads have clocked in at 6.67% in November (lowest level since last 43 months), down 86 bps on yearly basis and 10 bps on monthly basis
  • The FFC plan of acquisition AKBL is almost final as FFC, in its board of directors’ meeting scheduled to be, will discuss and approve the business plan for 2013 including AKBL acquisition


Ghani Glass, TPL Trakker Ltd, Engro Foods Limited, Askari Bank Ltd, Unilever Pakistan Ltd, Soneri Bank, Fauji Cement Company, Pak Oilfields, Sui Northern Gas Pipe, and National Foods were the major gainers while Pak. Int. Cont. Ter. Ltd., IGI Insurance, J.D.W Sugar, K.E.S.C., Murree Brewery, Bata Pak, Faysal Bank, Arif Habib Corp, Adamjee Insurance, and Dawood Hercules Chem. were major losers in the benchmark KSE-100 this week.

Top ten volume leaders were: TRG, KESC, FCCL, JSCL, EFOODS, LOTPTA, NCL, BOP, AKBL, and ENGRO.

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

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