Karachi Stock Exchange Weekly Analysis 11 May, 2013


The Karachi Stock Exchange (KSE) benchmark movement was bullish and the pre-election rally continued to drive index forward to an all time high level. Pre election euphoria kept sentiments positive as participants discounted poor law and order situation, enabling the KSE-100 to extend its merry march. KSE – 100 index closed at 19,916.27 points by gaining 689.64 points or 3.6 percent.

Volume activity climbed 28% WoW to 203mn shares while US$ values traded also followed suit to US$75mn (+51% WoW). Similar to last week, FPI inflows (US$42.5mn) included the buy-back of Unilever Pakistan shares. According to analysts, correction is expected in the market anytime, as it performed above its fundamentals, as local retail buyers remained silent in the market.

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


  • Telecom sector drew some late attention as Sindh High Court suspended CCP’s verdict against ICH
  • Pakistan discovered a new gas reservoir with a daily production of 33mmcfd in Kirthar Block, Dadu district. The new gas discovery has been made by Eni Pakistan in joint venture with the PPL and KUFPEC
  • Tight gas production in Pakistan is expected to start in July‐August this year from Sajawal Gas field
  • Bilateral currency swap agreement between the State Bank of Pakistan and the People’s Bank of China (PBOC) signed in Dec‐11 was officially implemented after issuance of necessary instructions to banks and completion of formalities during this week 
  • ADB (Asian Development Bank) and the Government of Pakistan signed an agreement for investing US$99mn in improving water supply and sanitation facilities in eight smaller cities of Sindh 
  • FBR is actively working on a budget proposal to change the highest tax brackets for salaried taxpayers in the upcoming budget FY14. FBR is analyzing a proposal to adjust top existing tax slabs of salaried class
  • Government of Pakistan has dedicated 150 mmcfd additional gas to power sector, and released PKR10bn to PSO for purchase of FO, it is learnt.
  • GoP has decided to increase electricity Tariff MDT by PKR5/unit for some categories of consumers soon after the GE’13. However, the government is charging PKR8.80/unit from consumers. The regulator raised tariff for IESCO by PKR4.80/unit because of the increase in electricity generation cost and hike in expenditures of the company in the ongoing FY 
  • Country’s oil sales surged by 11% to 1.7mn tons in April, mainly due to 34% jump in the sales of diesel and 17% increase in petrol sales, while FO sales declined by 5% during the month
  • Foreign fund buying was witnessed in energy and other blue-chip stocks, as they diverted their investment from Unilever Pakistan after its buyback from the stock exchanges in the country
  • Fauji Fertilizer, Fauji Cement, MCB Bank Limited, Pakistan State Oil, Oil and Gas Development Company Limited and Pakistan Petroleum Limited remained in the limelight after healthy result announcements
  • India’s renewed interest to join Iran-Pakistan gas pipeline


Top ten gainers of last week were: Muree Brewery Co, Mari Petroleum, Pakistan Cables, MCB Bank, Fauji Cement Company, Stand.Chart.Bank, Agriautos Industries, B.O.Punjab, Grays Of Combridge and Bank Of Khyber.

Top ten losers of last week were: Bata (Pak) Ltd., Javedan Corporation, Rafhan Maize Prod, TRG Pakistan Ltd, Kohinoor Energy, Askari Bank, Pak.Int.Con, Clariant Pakistan, Feroz 1888 Mills and Pak Suzuki Motor.

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

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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