KARACHI STOCK EXCHANGE LIMITED

S.KAMAL HAYDER KAZMI,
(feedback@pgeconomist.com)
Research Analyst
, PAGE
Oct 22 - 28, 2012

The Karachi Stock Exchange (KSE) is the biggest and most liquid exchange in Pakistan with an average daily turnover of 254 million shares and market capitalization of US $ 41.0 billion in May 2012. In the same period 2012, 92 per cent of the KSE total market capitalization was represented by the KSE-100 Index.

KSE PROFILE

DESCRIPTION 2011-12(END MARCH 2012)
Total listed companies 591
Total Listed Capital(Rs. in million) 1,058,455.26
Total Market Capitalization (Rs. in million) 3,528,143.84
Average Daily Share volume (million) 127.75

The International magazine business week declared the KSE as the best performing world stock market in 2002. Since then, international investors have given due considerations to the KSE in making decisions regarding foreign investment in equity markets.

Since 1991, foreign investors have an equal opportunity together with local investors to operate in the secondary capital market in the KSE. The establishment of the new policy for foreign investors and the privatization initiated in Pakistan has accelerated the development of KSE, which had 591 companies listed in 2012. The Karachi stock exchange trades the KSE-100 Index. It is a highly-diversified index of 100 largest capitalization companies' stocks from all sectors of Pakistan's economy. The exchange in terms of volumes also remained sluggish during the first half of the 2011-12 but volumes gathered pace in the 3rd quarter. The average daily volume for the nine months was 108.21 million shares. The investment by foreign investors in the capital markets during the period from July 2011 to March 2012 depicted a net outflow of USD 176.303 million. The closing value of the KSE 100-index as in May 2012 stood at 14,617.97 points registering a growth of 17.04 per cent as compared to July 2011 when the index stood at 12,484.17 points. It also touched its highest level of 14,617.97 points on May 07, 2012 and lowest level of 10,842.26 points on August 23, 2011.

OIL & GAS

Total twelve oil and gas companies are listed at the Karachi stock exchange. In addition to the oil and gas exploration companies, oil marketing companies and refineries are also listed in this sector. Due to global increase in prices and higher consumption, Pakistan's oil and gas sector has also shown good profits, and continued to be the major market player. During 2011 the total profit before tax was Rs. 196,116.97 million, whereas profit after tax was Rs. 134,496.29 million. During 2010 the profit after tax was Rs. 104,249.82 million. On March 31, 2012 the total market capitalization of this sector was Rs. 1,186,015 million as against total paid up capital of Rs. 74,537.225 million.

CHEMICALS

Within this sector thirty two companies are listed, with total paid up capital of Rs. 95,480.23 million and the market capitalization was Rs. 393,536.80 million. The profit after tax of this sector was Rs. 49,515.7 million. Six fertilizer manufacturing companies are included in this sector which has earned good profits during the year. These include Engro Chemicals, Fatima Fertilizer Company, Fauji Fetilizer Company and Fauji Fetilizer Bin Qasim etc.

CONSTRUCTION & MATERIALS

Total thirty six companies are listed in this sector, with total listed capital of Rs. 77,003.96 million and the market capitalization of Rs.113,500.56. On the back of higher cement prices and increase in local demand, the sector also showed growth which translated into good financial results compared to last year. In 2011 the total loss after tax had come down to Rs.404.275 million as against total loss of Rs. 6,107.25 million in 2010.

AUTOMOBILE & PARTS

The sector comprises of sixteen companies with the total paid up capital of Rs. 6,940.80 million and the total market capitalization was Rs. 43,857.87 million. The sector posted total profit of Rs. 4,519.86 million in 2011. Automobile sales also picked up in spite of increase in prices of locally manufactured cars.

PERSONAL GOODS

This is the largest sector with one hundred and eighty eight companies with a listed capital of Rs. 54,366.23 million and market capitalization of Rs. 54,366.23 million. The total profit after tax of this sector was Rs. 26,807.96 million.

FIXED LINE COMMUNICATION

The total five companies (includes PTCL) are in this sector, with capital of Rs. 51,000 million. The total paid up capital of this sector is Rs. 68,858.86 million and the market capitalization of Rs. 51,638.25 million. The total profit after tax was Rs. 2,828.473 million in 2011.

FOOD PRODUCERS

This sector comprises of fifty seven companies with total paid up capital of Rs. 20,476.29 million and market capitalization of Rs. 383,406.15 million. The profit after tax of this sector was Rs.16, 462.50 million in 2011.

COMMERCIAL BANKS

The sector comprises of twenty three listed banks with listed capital of Rs. 382,507 million and market capitalization of Rs. 774,521.13 million. The total profit after tax of this sector increased to Rs. 104,213.46 million from Rs. 65,060.58 million in 2010.

PHARMACEUTICALS & BIO TECH

The sector comprises of nine listed pharmaceutical companies with paid up capital of Rs. 4,955.77 million; whereas the market capitalization was Rs. 33,509.46 million. The total profit after tax of this sector was Rs. 4,041.26 million.

BLUE CHIPS

During July-March 2011-2012, the total paid up capital of fifteen big companies was Rs. 215.87 billion, which constituted 20.7 per cent of the total listed capital at KSE. These companies earned a profit after taxation of Rs.248.19 billion in the fiscal year up to March 2012. Out of the total profit after tax, the share of OGDCL and PPL was Rs. 94.98 billion representing 38.3 per cent of the fifteen big companies. For the period ending March 2012, earnings per share for the top rated companies ranged from a 1.46 in the case of PTCL to 307.98 in respect of Unilever Pakistan.