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Reuters | 29th December, 2010: Pakistani stocks up as banks post gains; rupee eases
The Karachi Stock Exchanges benchmark 100-share index ended 0.32 per cent, or 37.97 points, higher at 11,886.02. Volume was 99.78 million shares compared with 110 million shares traded on Tuesday.
Dealers said an announcement by the Abu Dhabi Group that it has agreed to sell a 20 per cent stake in UBL to Bestway (Holding) Ltd at an undisclosed price also fuelled interest in the lender. Investor interest was also witnessed in oil stocks, in anticipation of an expected rise in retail fuel prices later this week In the currency market, the rupee ended at 85.81/88 to the dollar, slightly lower than Tuesdays close of 85.79/84. There were some dollar outflows from the market today but at the same time inflows are also pretty decent as exporters are also selling dollars in the market, preventing a sharp fall in the rupees value, said a local bank dealer. Dealers said the market was also awaiting the result of a fortnightly auction of 3-,6- and 12-month treasury bills, for which the State Bank of Pakistan has set a target of 15 billion rupees.
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History of KSE

 By Dilawar Hussain | From the Newspaper | 22nd March, 2011: Fear of foreign sale pulls equity market down by two per cent
The investors were spooked by the comparatively heavy foreign outflow of $9 million on Friday, which had resulted in market plunge by 252 points. But the fears on Monday proved to be unfounded as the data released by the National Clearing Company of Pakistan Limited (NCCPL) in the evening showed net foreign sale of an insignificant $0.24 million.
Investor fingers were clearly pointing towards Oil & Gas Development Company (OGDC) the stock that carried the heaviest weightage in the index. A rupee one change in price of the OGDC could move index by as many as 17 points,. Most brokers and analysts thought that at the peak price of Rs175, the OGDC was overvalued and had to come down. Foreign funds are invested in the KSE to the tune of $3.4 billion, analyst Atif said. 3

 From the Newspaper | 16th September, 2011: Investors shrug off record 4Q corporate earnings
Corporate profits in fourth quarter (4Q) roared to Rs72.1 billion, showing an increase of 26 per cent over the earnings of Rs57.4 million in the corresponding period of the previous year.
Large number of companies posted higher profit in the results reporting season that started on July 25 and now draws to a close. The growth was led by the banking sector. Cement and fertiliser companies also reported improved bottom line in 4Q all of which pushed the full financial year 2011 earnings up by 18 per cent. Investors in equities, however, seemed to shrug off earnings growth. Weak domestic demand and energy shortages led to drop in volumes for the manufacturing concerns in 4Q, but profits recorded by cement sector was a phenomenal ten times the same period last year. Fertiliser companies earnings rose 54 per cent and the textile sector 23 per cent year-on-year owing to margin expansion facilitated by higher product prices. Going forward, we expect the positive momentum in earnings to continue into financial year 2012, with an expectation of a broad based rise of 15 per cent year-on-year. The services sector recorded an impressive rise of 45 per cent in earnings, primarily on account of 43 per cent increase in banking sector profits on the back of higher net interest income (spreads up 23bps YoY) and non-interest income. Pakistan Telecom (PTCL) also reported huge earnings growth by 71 per cent, fuelled by higher other operating income.
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 By Dilawar Hussain | From the Newspaper | 22nd September, 2011: Foreign investors push KSE up over 300 points.
The upward spiral of share prices which began the day earlier was effortless with volume surging to a six-and-ahalf-month high at 117 million shares. The index closed at 11,852 points, a six-week high. The market capitalization in two days shot up by Rs109 billion to Rs3.1 trillion.
At the end of the day, foreign gross buy amounted to $7.12 million and net buy at $3.9 million Almost everyone at the market attributed the bull run to inflation numbers at 11.56 per cent for August, announced on Tuesday, which were low by a surprisingly wide margin over the market consensus of 13.2 per cent. Investors believe it paves way for a generous discount rate cut by the State Bank in the Monetary Policy Statement to be released on Oct 8. Optimists were looking at rate cut of up to 100 basis points (bps). All of that suggested that the market was expecting a 25 to 50bps cut in discount rate in the upcoming Monetary Policy, said the KSE MD, adding that the low inflation and possible discount rate cut had rejuvenated investor interest in stocks.
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 From the Newspaper | 29th September, 2011: Stocks recover 94 points on follow-up support
The stock market on Wednesday extended the overnight recovery on active follow-up support in oil and fertilizer shares but the underlying sentiment remained a bit nervous amid concerns over the future Pak-US political relations.
The KSE 100-share index posted a fresh rise of 94.45 points at 11,625,69 as leading base shares came in for renewed buying and were marked up under the lead of National Refinery, Pakistan Oilfields, Fauji Fertilizer, Engro Corporation and National Bank. But some leading analysts were still in two minds about the future market outlook in the backdrop of talk of cut in US aid and conflicting reports about the US action against the Haqqani network.
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 From the Newspaper | Our Staff Reporter | 16th December, 2011: Index loses 161 points on panic selling.
Share values on Thursday came in for renewed selling across the board followed by panic selling triggered by a combination of negative news, both on political and US aid fronts.
The chief destabilizing factor, however, appears to be conditional US aid linked to war on terror and uncertain local political dispensation in the backdrop of prime ministers statement on various national issues. Leading base shares, which received a massive battering were led by Engro Corporation followed by reports of its shutdown for want of gas, Fauji Fertiliser, Fauji Fertiliser Bin Qasim, National Bank, Attock Refinery and several other blue chips. Aanalyst Ahsan Mehanti said what seemed to have triggered allround panic selling was the rumour of exit of foreign investors from the local bourse in number but it is a bit difficult to quantify it immediately.
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 Reuters | 19th December, 2011: Pakistan stocks end off high in political turmoil.
Pakistani stocks ended higher on Monday but off the days peak as foreign investors sold their holdings amid concerns over strained ties between civilian leaders and the military.
Dealers said the market rose early, after the return to Pakistan of President Asif Ali Zardari, whose medical treatment in Dubai triggered speculation he may resign. It is not clear when the deeply unpopular Zardari, who has uneasy ties with the army, will return to work. However, foreign investors, probably still concerned about the situation, emerged as sellers in the later part, driving the market sentiment lower, and though the index ended up, it was much lower than the high reached earlier in the day. Net selling by foreign investors in the Karachi stock market stood at $11.24 million last week, according to official data. Meanwhile, the rupee eased against the dollar amid increased demand for the US currency from importers, which dealers said could keep the rupee under slight pressure near-term. There was an import payment of about $60 million today, and the inflows were lower than that, and hence the rupee fell, said a dealer at a foreign bank.
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 Reuters | 3rd January, 2012 Pakistan rupee: trades at record low of 90.20; stocks up
The Pakistani rupee traded at a record low on Tuesday because of increased import payments and a deteriorating economic outlook, dealers said.
The rupee was traded at 90.20 (to the dollar) and there were import payments of about $100 million, said a dealer at a foreign bank. The rupee had traded at its previous record low of 90.03 on Wednesday. The rupee ended at 90.11/16 to the dollar, compared with Fridays close of 89.95/90.00. Banks were closed on Monday. There are concerns on the economic front as the countrys current account deficit stood at $2.104 billion in July-Nov compared with $589 million in the same period a year earlier. Foreign exchange reserves were at $16.77 billion in the week ending December 23, compared with a record $18.31 billion as of July 30. The rupee weakened 4.82 percent in 2011, after losing 1.53 per cent in 2010. Pakistan stocks rose led by the banking sector. The Karachi Stock Exchanges (KSE) benchmark 100-share index ended 1.06 per cent, or 120.03 points, higher at 11402.04 on turnover of 63.05 million shares. Buying in MCB Bank and NBP (National Bank of Pakistan) helped index to retain 120 points today,
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 From the Newspaper|6th-10th January, 2012: Stocks plunge 174 points amid panic in oil sector
The KSE 100-share index on Thursday plunged by 1.53 per cent or 174.09 points at 11,187.88 but well above the sessions low on late short-covering at lows followed by panic unloading in the oil sector.
But there appears to be many cogent reasons behind the nearpanic after the opening as the OGDC has a previous history of such feats on foreign selling as it has the capacity to rebound the very next day aided by positive fundamentals, most analysts believe. Foreign selling has been witnessed since Nato attack on a Pakistan border checkpost last month and stoppage of supplies to its forces in Afghanistan but it seldom assumed an alarming proportions. The sudden heavy unloading by foreign investors and that too in the blue chip, like the OGDC, was not immediately digested by the market. Fears of fresh foreign selling again hunted investors who liquidated long positions on some of the blue chips counters under the lead of OGDC, one of the massive weightage holder in the benchmark,` said a leading analyst Ahsan 10

 Reuters | 3rd February, 2012: Pakistani stocks up over EU textile waiver.

Pakistani shares ended higher on Friday in healthy turnover led by the textile sector after a World Trade Organization committee meeting this week approved a European Union waiver on duties for 75 products from Pakistan, dealers said.
Activity was mostly limited to the middle-tier stocks especially the textile sector, said Shuja Rizvi, a dealer at brokers Al-Hoqani Securities Ltd. Textile companies such as Azgard Nine ended 9.44 per cent higher at 4.29 rupees and Nishat Mills gained 1.47 per cent at 48.16 rupees.
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 Reuters | 29th February, 2012: Pakistani stocks end up; rupee weakens; o/n rates flat
Pakistani stocks ended more than one per cent higher on Wednesday on increased foreign buying of cement and fertilizer stocks, dealers said.
We saw some interest from the foreigners in middle tier stocks, especially of cement and fertilizer sectors, said Shuja Rizvi, a dealer at Al-Hoqqani Securities Ltd. Foreign investors bought shares worth a net $2,223,098 on Tuesday. Data for Wednesday will be released later in the day. In the currency market, the rupee ended weaker at 90.94/98 to the dollar, compared with Tuesdays close of 90.90/99 and dealers expect pressure on the rupee to persist because of higher import payments. The rupee touched a record low of 91.28 to the dollar in January, pressured by worries about higher payments for oil imports and the countrys overall economic health. Islamabad started repaying an $8 billion International Monetary Fund (IMF) loan on Friday with a $399 million payment. The State Bank of Pakistan cautioned this month that financing the countrys projected current account deficit would be a challenge.
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 Reuters | 2nd March, 2012: Stocks at highest close since June 08

Pakistani stocks, led by the cement sector, ended at its highest close since June 2008, dealers said.

Reuters | 8th March, 2012: Pakistani stocks end up, volume at 2-yr high
Volume at Karachi bourse touched a 2-year high of more than 350 million shares due to retail investors interest in smaller cement stocks, said Samar Iqbal, a dealer at Topline Securities Ltd.

Reuters | 15th March, 2012: Stocks close near four-year high; rupee weakens
Pakistani stocks ended on its highest close since May 2008 on Thursday, buoyed by middle tier shares and hopes of progress on capital gains tax (CGT) reforms, dealers said.
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 Reuters | 20th March, 2012: Stocks end up; rupee weakens; o/n rates flat.
Pakistani stocks ended more than 1.7 per cent higher on Tuesday, led by shares of fertilizer giant Engro Corp., after the company said gas would be supplied to its new plant and would start production by Friday.

Reuters | 21st March, 2012: Stocks end flat, rupee weakens; o/n rates fall Reuters | 30th March, 2012: Stocks end on new four-year high
Pakistani stocks ended on a fresh four-year high on Friday led by buying in cement shares which are benefiting from hopes of healthy profits this year, dealers said.
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 Reuters | 28th March, 2012: Stock market closes at four-year high

Pakistani stocks climbed 0.9 per cent to close at a four-year high on Wednesday, led by banking and cement shares on hopes of healthy earnings, dealers said.

Reuters | 29th March, 2012: Stocks end lower; rupee firms; o/n rates flat
Pakistani stocks ended slightly lower on Thursday as investors booked profits at higher levels after the market closed at a four-year high the previous day, dealers said.

Reuters | 3rd May, 2012: Stocks close at highest level since May 2008
With foreign investors increasing their activity in the stock market, there was an injection of confidence and the market was bullish, said Atif Zafar, a research analyst at the JS Global financial services company.
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 Reuters | 7th May, 2012: Pakistani stocks end on fouryear high

The Karachi Stock Exchange (KSE) benchmark 100-share index closed 0.04 per cent, or 5.69 points, higher at 14,617.97, with a volume of 174.8 million shares. The KSE closed at 14,612.28 on Friday, when heavy activity by foreign investors inspired a market rally.

Reuters | 18th May, 2012: Stocks tumble; KSE-100 sheds over 200 points
Foreign investors sold shares worth a net $4,201,629 on Thursday, according to the National Clearing Company of Pakistan.

Reuters | 14th June, 2012: KSE-100 rises 287 points

Pakistans main stock market rose on Thursday on greater investor confidence after positive comments from the United States concerning aid to Pakistan, analysts said.
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 Reuters | 2nd August, 2012: Stocks touch four-year high; banking shares fall on investor concern.
Pakistans main stock market closed slightly up on a fouryear high on Thursday, building on yesterdays rally on better-than-expected inflation figures, but banking shares fell on investor concern that a drop in interest rates could dent profits, dealers said.

Reuters | 13th August, 2012: Pakistan stocks hit fouryear high; rupee weakens.
The main reason for the positive trend in the market today was the State Bank (of Pakistan) announcement Friday evening of a 150-basis point cut in the discount rate, said Atif Zafar, a research analyst at the JS Global financial services company.

Reuters | 1st October, 2012: Pakistani stocks close at four-year high as inflation hits 33-month low
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 Reuters | 27th November, 2012: KSE-100 index peaks on the back of cement stocks; rupee weakens
Pakistani stocks rose to a record high near 16,400 points on Tuesday, driven by a spike in cement stocks and expectations that the central bank will cut rates at next months meeting.

Reuters | 24 hours ago: KSE-100 inches closer to 17,000 points in intraday trading
Pakistani stocks hit a record high in intraday trading for the fourth straight session on Friday, but settled lower as traders booked profits to close out the week In the currency market, the Pakistani rupee weakened to 96.70/96.76 against the dollar, compared to Thursdays 96.54/96.59, ahead of scheduled government debt and oil payments, dealers said.
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KSE 100 Index : Year 2012

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KSE 100 Index: Latest 6 months

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KSE 100 Index: Latest 3 months

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The End
The material included in these slides is compiled by me. However the text and the charts of these slides are taken from the web site of Dawn News and Pak stock market respectively. The material is being used only for academic purpose.
Hammad Hassan Mirza Assistant Professor, Department of Business Administration, University of Sargodha, Sargodha, 40100. Pakistan. hammadhassan@uos.edu.pk

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