Karachi Stock Exchange Weekly Analysis 12 October, 2014

The Karachi Stock Exchange (KSE) market exhibited volatility during this week, shortened to just two trading sessions on account of Eid holidays. The index gained a meager 0.2% WoW to close at 30,159 points. Locals were key support to the market, with foreigners selling US$6.2mn in just two days, compared to healthy buying of US$9.4mn last week. ADT rose 47% WoW to US$175mn shares, whereas value traded was up by 14% WoW to US$71mn/day.

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

  • The ECC directed the Ministry of Industries and Production and Ministry of Petroleum for provision of natural gas to local fertilizer manufacturers to meet maximum demand for urea to save precious foreign exchange
  • Pakistan’s total liquid foreign reserves rose by US$190mn to US$13.4bn as on 3 October, compared to US$13.2bn a week earlier. The increase can primarily be attributed to inflow of Coalition Support Fund (CSF)
  • The stock market experienced a turbulent couple of days during the week shortened by Eid holidays as judicial decisions took centre stage
  • The market opened on a negative note following the Peshawar High Court’s decision in the previous week that blocked the sale of shares in Oil and Gas Development Company Limited (OGDCL). The much-awaited book-building process of OGDCL’s shares was expected to start on Thursday but was delayed
  • Declining global oil prices compounded problems for the oil and gas sector and led to selling in index heavyweights. OGDCL’s share price fell 2.6% while Pakistan Petroleum Limited saw a drop of 1.2% in its share price on Thursday
  • On Friday after the Supreme Court allowed the OGDCL book-building process to continue with a caveat that no share transfer would take place until a hearing at a later date. The news was well received and brought stability in the oil and gas sector
  • The Sindh High Court restrained Sui Southern Gas Company (SSGC) and the Oil and Gas Regulatory Authority (Ogra) from levying the gas infrastructure development cess, despite a presidential ordinance. The news proved to be a catalyst for the fertiliser and cement sectors, which are heavy consumers of gas
  • On the macro front, the country’s foreign exchange reserves received a boost after the United States disbursed $364 million under the Coalition Support Fund. The reserves rose $190 million to $13.4 billion, according to latest figures of the State Bank of Pakistan
  • There was some bad news for investors as well as foreigners turned net sellers and offloaded $6.2 million worth of equity in just two days as compared to net buying of $9.4 million in the previous week


Top gainers of last week were: Rafhan Maize, Bata Pakistan, Pak Tobacco, Atlas Battery, Mari Petroleum, JDW Sugar, Grays of Cambridge, Allied Rental Modaraba, Bank of Punjab and Hum Network.

Top losers of last week were: Nestle Pakistan, Philip Morris, Sanofi Avantis, Shezan International, Sapphire Fibre, Oil & Gas Development Co., National Foods, TRG Pakistan, Adamjee Insurance and Thal limited.

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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