Karachi Stock Exchange Weekly Analysis 13 Oct, 2013

The Karachi Stock Exchange (KSE) market remained volatile, bearish spell continues amid sharp decline in volumes. KSE – 100 index closed at 2 1,775.39 points by losing -310.57 points or -1.41 percent. While KSE – 30 index closed at 16,494.22 points by losing -282.89 or -1.69 percent.

The most noticeable aspect of this week was the sharp fall in activity, with average daily turnover falling to 99mn shares, down 34% WoW, whereas US$ value traded fell by 45% WoW. The week saw modest FIPI inflows, with a net inflow of US$1.8mn during the week. According to experts sentiment to remain subdued in the coming week particularly as it will coincide with the holiday season.

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


  • Government of Pakistan plans to initiate the privatization process for 31 SOEs within the next 12 -18 months with preference to offload OGDC in the international market and PPL in both local and international markets
  • Prime Minister Nawaz Sharif’s approval for the telecom spectrum auction which Is expected to be completed by Feb 2014
  • Government of Pakistan directives to TCP to import 500k tons urea within the next two months
  • On the economic front, the trade deficit for Sep 2013 contracted by 26%MoM to clock in at US$1,170 million countered by strong remittances which clocked in at US$ 1,283 million
  • Local cement sales slightly went up by 2.17% in 1QFY14 as compared to same period last year while exports plunged by 1.40% in the same period 
  • Pakistan economy is trapped in a low‐growth equilibrium, lower than other South Asian countries, because of macroeconomic instability, low investment and savings, a business‐unfriendly environment, and low productivity, said a World Bank 
  • Country’s indigenous tractor industry has almost closed, as one of the major manufacturers AGTL has stopped its production for the last 3‐months while MTL is presently operating at 20% of its total production capacity 
  • CMPak decided not to opt for the bidding for Warid in Pakistan after conducting business evaluation of the proposition
  • The country’s total oil and gas production during 1QFY14 stood at 796kboepd, down by 1.3% as compared to the same period last FY
  • Pakistan's energy sector circular debt has again peaked to PKR157bn 3‐months after PKR480bn was settled by the FM without audit of IPP
  • The KSE is excited over the proposed KESC ‘sukuk’ - the Islamic bond
  • The second initial public offering (IPO) of Engro Fertilisers, a major subsidiary of listed Engro Corp, is likely to hit the market in short time. The transaction would be 100 million shares, to be sold at a minimum price of Rs20
  • Foreign portfolio investment saw modest net inflows of $1.8 million against the inflows of $6.62 million last week


Top ten gainers of last week were: Hum Network Ltd, Pak Services, Rafhan Maize Prod., Nestle Pakistan, Century Paper, Grays Of Combridge, Lafarge Pakistan, Mari Petroleum, Sui South Gas and TPL Trakker Ltd.

Top ten losers of last week were: National Foods, Askari Bank Ltd., Hub Power, Colgate Palmolive, Pak Tobacco Co., Javedan Corporation, Pak Reinsurance, Int. Ind.Ltd, Soneri Bank and Pace (Pak) Ltd.

Top ten volume leaders were: BOP, TRG, HUBC, PTC, FCCL, BAFL, NIB, NBP, KESC, and NPL.

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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